A statute of limitations is a law that sets a time limit on how long a creditor has to sue a debtor to collect a debt. In Texas, the statute of limitations for most debts is four years. This means that a creditor has four years from the date the debt becomes due to file a lawsuit to collect the debt. If the creditor does not file a lawsuit within four years, the debt is considered to be time-barred and the debtor is no longer legally obligated to pay it.
There are some exceptions to the four-year statute of limitations. For example, the statute of limitations for debts secured by real property is five years. The statute of limitations for debts owed to the government is ten years. And there is no statute of limitations for debts that are based on fraud.