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Texas Consumer Laws at a Glance
Each state legislature wrote its own set of laws protecting state residents. This page contains seven tables that condense important consumer-related laws for Texas residents. Because seeing all seven tables is a bit overwhelming, we hid them until you click on links to reveal them. Click on the appropriate link to see the information you wish to see. To learn more, we include links to state and Bills.com resources you can trust.
Texas Collection Law
Account levy and liens against property are allowed in Texas, but not wage garnishment for typical consumer debt. Learn the collections rules for Texas debts, and related laws. +/- View Texas Collection Laws tables
Click on the state statute hyperlink to read the law on the Texas state Web site. Put your cursor over a legal term to read its definition.
| Collection Law | Garnishment | Account Levy | Exemptions (debt) | Homestead law | Homestead exemption | Doctrine of Necessaries | Probate rule |
|---|---|---|---|---|---|---|---|
| Texas rule | No | Allowed | Personal property: $30,000 Single $60,000 Family Retirement accounts College savings | Yes | 10 acres municipal 100 acres rural single 200 acres rural family | Yes | Multiple options |
| Texas statute | CP Title 3, Chapter 63 | FI Title 3, Subtitle A, Chapter 59 | Property Title 5, Subtitle A, Chapter 42 | Property Title 5, Subtitle A, Chapter 41 | Family Code Title 1, Subtitle A, Chapter 2 | Texas Probate Code | |
| Bills.com resource | Texas Collection Laws | ||||||
Texas Collection Law
Texas Statute of Limitations
A statute of limitations provides an affirmative defense should a creditor file a lawsuit against debtor for a consumer debt. +/- View Texas Statute of Limitations Laws table
| Statute of Limitation | Credit Card | Written contract | Spoken contract | Judgment |
|---|---|---|---|---|
| Texas rule (years) | 4 | 4 | 4 | 10 |
| Texas statute | CP Title 2, Subtitle B, Chapter 16 | Property Title 5, Subtitle B, Chapter 52 | ||
| Bills.com resource | Texas Statute of Limitations | |||
Texas Statute of Limitations
Texas Bankruptcy Rules
Learn the bankruptcy exemption amounts for Texas residents. View Texas Bankruptcy Laws table
| Bankruptcy | Means Test Standards | Exemptions | |
|---|---|---|---|
| Texas rule | Food, Clothing & Other Items_1_ | $534 | Single: $30,000 Family: $60,000 Spread across the following 13 categories: Home furnishings, food, farm & ranch vehicles, tools of trade, clothing, jewelry not exceeding 25% of exemption limit, 2 firearms, sports equipment, 1 vehicle per person, certain number of farm animals, pets, life insurance present value, unpaid commissions, wages, health aids, insurance benefits, retirement plans, Social Security benefits. |
| Texas statute | Health care | 65 $144 | |
| Housing non-mortgage_1_ | $377-$575 | ||
| Housing rent or mortgage_2_ | $500-$1,188 | ||
| Transport private_3_ | $242-$312 | ||
| Transport public | $182 | ||
| Vehicle ownership costs | $496 | ||
| Texas statute | Census Bureau, IRS Data and Administrative Expenses Multipliers 1 National standard one person 2 Texas standard varies by county 3 Regional standard | Property Title 5, Subtitle A, Chapter 42 | |
| Bills.com resource | Bankruptcy Information | ||
Texas Bankruptcy
Texas Mortgage
Texas offers a limited anti-deficiency law for Texas residents who fall into foreclosure. Also, learn the maximum amount of an FHA loan in Texas. View Texas Mortgage Laws table
| Mortgage | FHA & Fannie/Freddie Loan Limits | Lawyer needed for home purchase | Anti-deficiency rule | Foreclosure type | Foreclosure minimum timeline |
|---|---|---|---|---|---|
| Texas rule | $417,000 | No | Borrower must be credited for the FMV. | Both Non-Judicial | 41 days (60 is typical) |
| Texas statute | FHA Mortgage Limits | Property Title 5, Section 51 | |||
Texas Mortgage
Texas Payday Loans
Texas allows a consumer to borrow up to $500 in payday loans, but does not limit the number of loans. View Texas Payday Laws table
| Payday Loans | Allowed by Law | Maximum Loan | Maximum Fee | Maximum Loan Number | Internet Payday Loans? | State Loan Authority |
|---|---|---|---|---|---|---|
| Texas rule | Yes | $500 | $10 per loan + 48% annual interest | $500, but no max quantity | Not outlawed | Texas Office of Consumer Credit Commissioner |
| Texas statute | Texas Finance Code Title 4, Subtitle B, Chapter 342, Subchapter E and Texas Administrative Code Title 7, Part 5, Chapter 83, Subchapter 1, Division 6, Rule §83.604 | |||||
| Bills.com resource | Payday Loans & Hot Checks in Texas | |||||
Texas Payday Loans
Texas Consumer Protection
What is the maximum interest rate a consumer can be charged in Texas? What is Texas' Lemon Law? Where can a Texas find no-cost legal services? View Texas Consumer Laws table
| Consumer Protection | Consumer Protection Authority | Debt settlement allowed | Credit counseling fee restrictions | Usury rate | Utility Regulator | Labor Complaints office | Unemployment office | Lemon Law, Used & New | Legal Aid Contacts | Credit Report Freeze Laws |
|---|---|---|---|---|---|---|---|---|---|---|
| Texas rule | Texas Office of Consumer Credit Commissioner | Yes | $75 enrollment; $10/creditor/month, max $50 | Varies. 18% for many | Public Utility Commission of Texas | Texas Workforce Commission | Texas Workforce Commission Unemployment Benefits | Yes, new and used | TexasLawHelp | Free to ID theft victims |
| Texas statute | OCC Interest Rates page | Texas DMV Lemon Law page | TexasFightsIdTheft.gov |
Texas Consumer Protection
Texas Facts
Learn the Texas population, sales tax rate, average income, and more. View Texas Facts table
| Consumer Facts | Population | Employment Statistics | Texas Average Income | State income tax | State income tax rate | Property tax rate | Sales tax rate | State Student Loan 529 plan |
|---|---|---|---|---|---|---|---|---|
| Texas rule | 25,674,681 | 7.8% | $24,870 | None | N/A | up to $2.50/$100 valuation, plus others | 6.25%-8.5% | Texas Prepaid Higher Education Tuition Program |
| Texas statute | US Census Bureau | Texas Workforce Commission Unemployment News | US Census Bureau | Art. XI §5, Texas Constitution |
Texas Facts
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Did you know?
Debt is used to buy a home, pay for bills, buy a car, or pay for a college education. According to the NY Federal Reserve total household debt as of Q1 2024 was $17.69 trillion. Auto loan debt was $1.62 trillion and credit card was $1.12 trillion.
A significant percentage of people in the US are struggling with monthly payments and about 26% of households in the United States have debt in collections. According to data gathered by Urban.org from a sample of credit reports, the median debt in collections is $1,739. Credit card debt is prevalent and 3% have delinquent or derogatory card debt. The median debt in collections is $422.
The amount of debt and debt in collections vary by state. For example, in Ohio, 28% have any kind of debt in collections and the median debt in collections is $1369. Medical debt is common and 15% have that in collections. The median medical debt in collections is $607.
While many households can comfortably pay off their debt, it is clear that many people are struggling with debt. Make sure that you analyze your situation and find the best debt payoff solutions to match your situation.
