Texas Collections Law FAQs

How long has the firm been practicing collections?

Since 1994. We have focused on collections since the firm was founded.

How many lawyers does the firm have?

We have 15 lawyers, plus clerks we expect to have licensed within the next 18 months. Every lawyer here works in collections.

What does the firm handle?

We handle commercial collections and lender-side collection work: promissory note and guaranty enforcement, deficiency suits after collateral disposition, UCC Article 9 commercial reasonableness litigation, § 51.003 fair-market-value offset litigation, replevin and sequestration, and construction creditor collection. We also collect personal loans for individuals. On the post-judgment side, we enforce judgments we obtained and judgments obtained by other counsel, register and enforce foreign judgments, revive dormant judgments, and collect while a judgment is on appeal (including supersedeas and net-worth-affidavit challenges). We coordinate multi-state matters and work alongside bankruptcy counsel on creditor matters.

What does the firm not handle?

We don't do pre-litigation transactional work, bankruptcy representation, family law, estate planning and probate, real estate transactional work, employment law, criminal defense, personal injury, or tax matters. We also don't take general commercial litigation outside collections, high-volume consumer debt collection, or debtor-side defense work as a rule.

See: What This Firm Doesn't Do

How quickly does the firm typically respond to inquiries?

For initial intake, usually within one to three business days. On an active matter, we reach out as developments happen rather than waiting for a set check-in.

Will the firm take very small commercial balances?

We look at fit one matter at a time. A very small balance may not be economic to litigate, and if that's the case we'll tell you so at intake. We've handled matters across the full size range, from small four-figure balances to commercial portfolios in the millions.

Will the firm take referrals from other lawyers?

Yes. We regularly take referrals and co-counsel with outside lawyers on collections matters. Our fee-sharing arrangements comply with Texas Disciplinary Rule of Professional Conduct 1.04(f), with written client disclosure and consent.

Will the firm solicit other work from a referring lawyer's client?

No. Collections is our practice. We don't go after a referring lawyer's client for family, transactional, employment, or general commercial work.

Do I have to come to Dallas to engage the firm?

Generally, no. Most of our client communication happens by phone, email, and video. We'll set up an in-person meeting when it's useful, but it isn't required.

How does the firm communicate with clients during a matter?

We set a communication cadence at intake based on what works for you. Some clients want updates tied to events (significant filings, motions, rulings, and recoveries), some want monthly or quarterly status reports, and some want a written initial assessment up front. We'll match the level of involvement you prefer.

What does the firm charge for collections work?

It depends on the matter: the size of the debt, whether litigation looks likely, the debtor's profile, and how complex we expect enforcement to be. We talk through fees at intake for your specific situation. Most engagements are hourly, but contingency and modified-contingency arrangements make sense for some matters.

Can the firm work on contingency?

Sometimes. We decide fee structure matter by matter, and for some matters a contingency or modified-contingency arrangement is available. We work that out as part of the intake conversation.

What does it cost to sue someone for an unpaid debt?

That depends on how far the matter goes. If it resolves at demand or by default judgment, attorney time is usually modest. It costs more if we have to take it through summary judgment, and more still if it goes to trial. Court costs run $300 to $1,000 through judgment for a typical commercial matter, and service fees add $75 to $200 per defendant. Post-judgment work carries its own costs.

See: What Does It Cost to Sue Someone?

Are attorney's fees recoverable from the debtor?

In many matters, yes, under Texas Civil Practice & Remedies Code Chapter 38. That covers suits for rendered services, performed labor, and furnished material, as well as suits on a sworn account and on oral or written contracts. To recover, the creditor must be represented by an attorney, present the claim, allow at least 30 days for payment, and not be paid within that 30-day window. We build our demand letter to satisfy these requirements.

Are court costs recoverable?

Generally, yes. Filing fees, citation fees, and fees for issuing writs get added to the judgment as they're incurred and are recoverable from the debtor.

What about post-judgment interest?

Post-judgment interest runs from the date of judgment under Texas Finance Code Chapter 304. The Texas Office of Consumer Credit Commissioner publishes the rate periodically; it's tied to the prime rate, with statutory floors and ceilings.

Will I have to pay before any work is done?

It depends on the engagement. Hourly engagements usually involve a retainer paid up front. Contingency engagements usually don't, though you may still need to advance court costs and out-of-pocket expenses.

What's the realistic recovery percentage on collection matters?

There's no single number. Recovery ranges from full to nothing, depending on the debtor's profile, how strong the documentation is, whether assets are visible, whether there are guarantors, and the risk of bankruptcy. We give you a candid read at intake.

See: Realistic Recovery Timeline & Expectations

What if the firm doesn't recover anything?

On an hourly engagement, you pay for the time we spend whether or not we recover. On a contingency engagement, there's no fee if there's no recovery. Out-of-pocket costs may still be owed, depending on how the engagement is structured.

How does the firm calculate the running balance on a judgment?

We track it on a spreadsheet that applies the correct interest rate from the judgment date forward, adds costs as they're incurred, and applies payments under the allocation rules. We'll provide a current balance accounting whenever you ask.

How quickly does the firm typically file suit after intake?

For matters that go to suit, we usually file within 30 days of the demand letter, and often within 10. When it's already clear a matter won't settle at demand, we can move to filing faster.

What's the typical resolution rate at the demand-letter stage?

Roughly 15% to 20% of matters start to resolve at the demand-letter stage. The debtor pays in full, makes a substantial payment, or calls us to negotiate a structured settlement.

Should I send my own demand letter before going to a lawyer?

We usually send the demand letter as part of the engagement. A demand from a law firm carries more weight than one from the creditor's own A/R department, and it satisfies the statutory notice requirement for recovering attorney's fees on a contract claim under Chapter 38.

Should I always try a collection agency first?

No. When the debtor's profile suggests an agency won't get the matter resolved, coming straight to a law firm is often the more efficient route. We'll tell you candidly at intake what we think the right path is.

See: Collection Agency vs. Collections Law Firm

What if I've already used a collection agency and they didn't produce results?

We take those matters regularly. We'll review what the agency did, what it produced, and where the matter stands now, then proceed with litigation if that's the right call.

What documentation does the firm need to start a commercial collection matter?

At a minimum: the credit application (especially the personal guaranty section, if there is one), invoices, proof of delivery, statements of account, payment history, and any correspondence with the buyer about the account.

What documentation does the firm need to start a deficiency matter?

The promissory note, any guaranties, the security agreement, the UCC-1 filing, payment history through default, repossession records, notice-of-disposition records, sale records, an accounting of how proceeds were applied, and the resulting deficiency calculation.

Should I send a "final demand" myself before involving the firm?

If you're at the point of deciding whether to keep waiting or to act, a formal demand letter from us is often the right next step. Our letter creates leverage for a resolution, and you can decide whether to escalate to suit after you see the response.

Will the demand letter satisfy Chapter 38 requirements for attorney's fees?

Yes. We write our demand letter to meet Chapter 38's presentment requirement and start the 30-day clock.

See: Interest, Costs, and Attorney's Fees

How long does it typically take to get a judgment?

If the debtor doesn't answer, default judgment is usually available within 60 to 90 days of filing. If the debtor answers but can't raise a genuine fact issue, summary judgment is usually available within 4 to 6 months of filing. If the matter has to be tried, the court's docket sets the timeline, and that can run a year or more.

What's a Suit on Sworn Account?

It's a procedure under Texas Rule of Civil Procedure 185. When the seller's petition is verified by an affidavit that meets the rule's requirements, a general denial from the buyer isn't enough; the buyer has to specifically deny each item in the account under oath, or the account is taken as true. We use Rule 185 routinely in wholesale, distribution, and other invoice-based matters.

Can the firm sue both the entity and a personal guarantor at the same time?

Yes, and naming both in the original suit is standard practice. Pursuing them together is more efficient than going one at a time, and it protects you if the entity becomes uncollectible during the litigation.

How quickly can the firm move on a note default?

Most note matters go from intake to filed suit within 30 days, often faster. The summary-judgment motion usually follows the borrower's answer (or the lapse of the answer deadline) by 30 to 60 days.

What if the debtor disputes the balance?

At summary judgment, the debtor has to raise a genuine fact issue on the balance, and a general denial doesn't do that. The debtor has to produce evidence, usually affidavit testimony or documents, that actually contradicts the lender's calculation.

What if the original note has been lost?

Texas has a procedure for enforcing a lost note. The lender has to establish ownership, show that the loss happened through no fault of its own, show that the borrower's ability to raise defenses isn't impaired, and provide adequate protection against double payment.

What about an oral contract?

Texas allows breach-of-oral-contract claims. A loan can be made by oral agreement, by an exchange of texts or emails, or by a mix of conduct and communication. The four-year limitations period under Civil Practice & Remedies Code § 16.051 generally applies.

What if I only have text messages?

Text messages come in as evidence under the same rules as any other written communication. Authenticity, hearsay, and best-evidence rules apply, but texts routinely make it into evidence in collection matters. Texts where the borrower acknowledges the loan or promises to repay it are often powerful proof.

What if I have nothing in writing at all?

Cash transfers with no documentation are the hardest. We review whatever you have at intake; bank records, witnesses to the transfer, contemporaneous statements about the loan, and the borrower's own messages can add up to establish a loan. We'll give you an honest read on whether it's viable.

What does a Texas judgment actually let me do?

A Texas judgment puts the debtor under court authority, backed by sanctions up to and including contempt and incarceration, to answer questions about finances under oath, produce documents, respond to writs of garnishment, surrender non-exempt property to a sheriff or constable, comply with turnover orders, and appear when ordered for depositions, asset hearings, and contempt proceedings.

How long is a Texas judgment good for?

Generally ten years from the date of entry, and you can renew it before it expires to extend its life. A judgment that hasn't been acted on within ten years can go dormant.

See: How Long Does a Texas Judgment Last? and Reviving a Dormant Judgment

Can I just have the sheriff take the debtor's property?

Not without a writ. Before a sheriff or constable can seize property, you have to get a writ of execution from the court. Preparing and serving writs of execution is part of our standard post-judgment practice.

How long will it realistically take to collect on a judgment?

For a cooperative debtor with assets, 30 to 90 days. For a resistant debtor with traceable assets, usually 6 to 18 months. For a resistant debtor with concealed or out-of-state assets, 12 to 36 months or more. For a debtor with no current assets, we preserve and renew the judgment for ten years and collect when circumstances change.

Will the firm take over a judgment from another lawyer?

Yes. We regularly take over judgments obtained by other counsel and run full post-judgment enforcement.

Will the firm take over a judgment I obtained pro se in justice court?

Yes. We often pick up matters at the post-judgment stage from people who won pro se in justice court but can't collect.

What if I've already done some post-judgment work and it didn't produce results?

We look at what's been done, what tools haven't been used yet, and where the matter actually stands. Often the file has problems that can be fixed. We pick up where the earlier work left off.

Is there a deadline for me to start enforcement?

The judgment is enforceable for ten years from entry, and renewal extends that. There's no specific deadline to start, but delay is consistently the single biggest thing that cuts into recovery.

What if the debtor refuses to comply with court orders?

We pursue contempt. We've obtained contempt findings, body attachments, and the incarceration of judgment debtors who refused to comply with court orders.

How do I find out what the debtor owns?

Through post-judgment written discovery, post-judgment depositions, third-party subpoenas, and public-records research. The debtor has to answer post-judgment discovery under oath, and false answers expose the debtor to perjury liability and contempt sanctions.

What's the most useful single investigation tool?

For most matters, post-judgment written discovery is the highest-leverage place to start. Truthful answers identify the assets. Evasive or false answers are useful too, sometimes giving us the basis for contempt or perjury actions that create more leverage.

What if the debtor refuses to answer post-judgment discovery?

We file a motion to compel. If the debtor still won't answer, we pursue sanctions, including monetary sanctions and contempt.

Can the firm find assets in other states?

Yes. Public-records research reaches into other states. Subpoenas to out-of-state third parties may take coordination with local counsel, and we can depose out-of-state witnesses under the Uniform Interstate Depositions and Discovery Act.

What if the debtor is hiding cash?

We can surface cash through a lifestyle-versus-reported-income analysis, a deposition of the debtor about cash transactions, depositions of third parties such as accountants and business associates, and contempt proceedings. Cash the debtor can't account for from legitimate sources is itself evidence of undisclosed income or assets.

Can the firm reach assets the debtor transferred to family members?

Sometimes. The Texas Uniform Fraudulent Transfer Act lets us set aside transfers made within specific lookback periods if the statutory grounds are met: a transfer made with intent to hinder, delay, or defraud creditors, or a transfer for less than reasonably equivalent value while the debtor was insolvent or was made insolvent by it.

How does the firm handle trust structures?

Texas trust law is detailed. Some trusts give creditors little or no protection to work around, such as revocable trusts, trusts where the debtor is both settlor and beneficiary, and certain self-settled trusts. Others offer substantial protection. We analyze the structure and identify what's reachable through turnover and, where appropriate, fraudulent-transfer claims.

What's an abstract of judgment?

A document we record in counties where the debtor owns or may own real property. Recording it creates a judgment lien on the debtor's non-exempt real property in that county under Texas Property Code Chapter 52.

What's a writ of garnishment?

A writ served on a third party, usually a bank, that holds the debtor's property or owes money to the debtor. It directs that third party to hold the property pending a court order, under Texas Civil Practice & Remedies Code Chapter 63.

What's a writ of execution?

A writ directing the sheriff or constable to seize and sell the debtor's non-exempt personal property, under Civil Practice & Remedies Code Chapter 34 and Rules of Civil Procedure 621–629.

What's a turnover order?

A court order under § 31.002 directing the debtor to turn over non-exempt property, including property that's hard to reach by ordinary execution, such as interests in other entities, accounts receivable, intellectual property, and contractual rights.

What's a receivership?

A receiver appointed by the court who can manage or liquidate the debtor's property more effectively than the debtor will. It's used under § 31.002 in collection matters.

What's sequestration?

A pre-judgment remedy under Civil Practice & Remedies Code Chapter 62 that lets a secured creditor get a court order seizing specific personal property while the litigation is pending. We use it when self-help repossession isn't available or has failed.

What's contempt?

A finding by the court that the debtor willfully failed to comply with a court order. Civil contempt can produce monetary sanctions; criminal contempt can produce body attachment and incarceration. We've obtained contempt findings, body attachments, and incarcerations.

What's a charging order?

A court order directing the debtor's distributions from an LLC or partnership to be paid to the creditor instead. We use it to reach the debtor's interest in entities the debtor doesn't solely own.

Does the firm help individuals pursue personal loans?

Yes. We regularly represent individuals trying to collect money they loaned to a friend, family member, or business associate.

Do I have a case if I don't have a written loan agreement?

Possibly, and more often than people expect. Texas allows claims for breach of an oral contract, for money had and received, and for unjust enrichment. We review what you have and give you a candid assessment.

What evidence supports an unwritten loan?

Bank records, wire transfers, and Zelle or Venmo records; text messages, emails, and voicemails; witness testimony; partial payments; the borrower's own accounting or tax records; and other contemporaneous documents.

What's the strongest single piece of evidence in unwritten-loan cases?

Partial payments. It's hard to characterize a partial payment as anything other than an acknowledgment of the debt.

What if the borrower says it was a gift?

The borrower's after-the-fact label doesn't control. What matters is what the parties actually agreed to when the money changed hands. Communications about repayment, partial payments, and the surrounding circumstances all point to a loan rather than a gift.

What if the loan was made years ago and I never demanded repayment?

The four-year statute of limitations is the threshold question. For a loan payable on demand with no fixed due date, Texas courts often treat the clock as starting when the loan was made, not when you finally demand payment, so don't assume an old loan is still timely. Where demand was a genuine condition of repayment, accrual can be later. We assess the specific facts before relying on limitations.

Can I get interest on an unwritten loan?

If the parties agreed on a rate, the borrower owes that rate, subject to Texas usury limits. If no rate was specified, Texas Finance Code may supply a statutory rate. Once judgment is entered, post-judgment interest accrues at the statutory rate.

What if the borrower keeps promising to pay?

A long run of broken promises is itself evidence that the next promise isn't credible. A formal demand letter from a law firm often gets a resolution where informal demands never did.

See: The Borrower Keeps Saying They'll Pay

How do I know if I have a personal guaranty?

Look at the original credit application or loan document. The guaranty is usually on the same document as the underlying credit agreement, signed by the principal in a personal capacity.

What if the guaranty is old?

Older guaranties are often still effective. We review the specific language at intake. Some older forms lack modern waiver language, but enforcement is still usually available.

Can I pursue the guarantor without first pursuing the entity?

Usually, yes. Most modern guaranties are "absolute" guaranties, or guaranties of payment, rather than guaranties of collection. That means you can go after the guarantor directly without first exhausting your remedies against the entity.

What's the most common defense guarantors raise?

That the lender modified the underlying loan without their consent. Most modern guaranty forms include consent-to-modification language that defeats this defense.

What about "I never signed it"?

That's an authenticity challenge. We answer it with the original document, contemporaneous business records, witness testimony, and, where it's genuinely contested, handwriting expert testimony.

What about "the lender impaired the collateral"?

Most modern guaranty forms waive the impairment-of-collateral defense. For a guaranty without that waiver, the defense is fact-specific, and we build the commercial-reasonableness record to meet it.

What about "the principal's bankruptcy releases me"?

That fails as a matter of law. The principal obligor's bankruptcy doesn't release the guarantor. 11 U.S.C. § 524(e) provides specifically that discharge of a debt of the debtor doesn't affect any other entity's liability for that debt.

Can I pursue the guarantor's spouse?

Texas community-property law affects what can be reached. We analyze the spousal-property issues for your specific matter.

Does the firm represent banks, credit unions, and other regulated lenders?

Yes. We regularly represent financial institutions in note-and-guaranty enforcement, deficiency collection, and post-judgment enforcement. We're comfortable working under bank engagement standards, including conflict checks, e-billing systems, and structured reporting.

Can the firm prosecute deficiency claims against UCC commercial reasonableness defenses?

Yes. We build the commercial-reasonableness record up front, through affidavits from the lender's recovery personnel, auction records, market comparables, and industry-practice evidence, and we use that record to defeat the defense at summary judgment.

What's the deadline for a § 51.003 deficiency suit?

Two years from the date of the foreclosure sale. We track this deadline carefully on every matter.

Can the firm handle § 51.003 fair-market-value offset disputes?

Yes. We've both prosecuted and defended § 51.003 claims, and we work with appraisal professionals on either side of the issue.

Does the firm handle replevin and sequestration?

Yes. We file for sequestration under Civil Practice & Remedies Code Chapter 62 when self-help repossession isn't available or has failed.

Can the firm handle lender portfolio engagements?

Yes. We've handled portfolio matters and structure these engagements with standardized intake, tiered fees, portfolio-level reporting, and defined escalation protocols.

Does the firm use Tymetrix / Passport / Legal Tracker?

Yes. We have experience with the major e-billing platforms.

How does the firm handle audit-letter responses?

We respond in compliance with the ABA Statement of Policy Regarding Lawyers' Responses to Auditors' Requests for Information.

Does the firm file mechanic's liens?

Yes. Preparing and filing affidavits of lien, constitutional, statutory, or both, is a regular part of our construction collection practice. Our dedicated construction-lien site, dallaslienlawyer.com, covers the lien rights available at each contractor tier.

What if my lien deadline is in a few days?

Call us right away. You can check your exact dates with the Texas mechanic's-lien deadline calculator on our lien site. Our lien process is built to produce lien affidavits and statutory notices on a tight timeline.

Does the firm handle bond claims on public projects?

Yes. Payment-bond claims on public projects under Texas Government Code Chapter 2253 are part of our construction practice.

Does the firm pursue trust-fund claims under Chapter 162?

Yes. Trust-fund claims under Texas Property Code Chapter 162 are a regular part of our construction work, especially against contractors who took owner payments and didn't pay their sub-tier creditors.

Can the firm collect against a property owner directly?

It depends. A perfected lien creates rights against the property and, in some circumstances, against the owner personally for trapped funds the owner failed to retain after a valid notice.

What if the general contractor files bankruptcy mid-project?

We coordinate with bankruptcy counsel on the proof-of-claim filing for the contract claim, evaluate trust-fund claims for non-dischargeability, look at the surety on bonded jobs, and keep collection efforts going against the non-bankrupt parties.

Does the firm represent owners or general contractors defending construction claims?

Generally, no. We represent construction creditors. If you are an owner or general contractor with a lien filed against you, our lien site explains the defense side, though for that representation other counsel is more appropriate.

Does the firm file bankruptcy?

We don't act as bankruptcy counsel. We coordinate with your bankruptcy counsel, or recommend bankruptcy counsel if you need it, and we keep advising on the points where bankruptcy and state-court collection intersect.

What if my debtor files bankruptcy after I've obtained a judgment?

The filing stays our collection efforts immediately. We coordinate with bankruptcy counsel on the proof-of-claim filing, the dischargeability analysis, and stay-relief work where the matter justifies it. Even when collection is interrupted, the file isn't necessarily lost.

Will my judgment be wiped out by the bankruptcy?

Not always. The judgment can survive in several ways: the underlying debt may be non-dischargeable under § 523; a judgment lien on real property may keep attaching to the property even after personal liability is discharged; and collection against non-bankrupt co-obligors and guarantors continues unaffected.

What's non-dischargeability under § 523?

Section 523 of the Bankruptcy Code lists categories of debt that aren't discharged, including money obtained by fraud or false pretenses (§ 523(a)(2)), fraud or defalcation while acting in a fiduciary capacity (§ 523(a)(4)), and willful and malicious injury (§ 523(a)(6)). A non-dischargeability claim has to be raised by adversary proceeding within 60 days after the first date set for the meeting of creditors.

Should I file a proof of claim?

Generally, yes. Whether or not the underlying debt is dischargeable, filing the proof of claim preserves your position in the bankruptcy.

What if I missed the proof-of-claim deadline?

A late-filed claim is sometimes still allowed in narrow circumstances, such as excusable neglect or surplus assets in the estate, but filing late materially weakens your position.

Will bankruptcy affect collection against the personal guarantor?

Generally, no, unless the guarantor also files. The principal borrower's bankruptcy stay doesn't protect the guarantor.

Can a recorded abstract of judgment survive Chapter 7?

The abstract may keep attaching as a lien on non-exempt real property. The debtor often files a § 522(f) motion to avoid the lien if it impairs the homestead exemption.

Can my Texas judgment be enforced in any other state?

Generally, yes, in any U.S. state, by registering it under that state's Uniform Enforcement of Foreign Judgments Act or equivalent statute.

How long does registration take?

The registration itself usually takes a few weeks. The filing, notice, and any contest period typically run 30 to 90 days.

What if the debtor moved out of state?

We can register the Texas judgment in the new state. We coordinate with counsel there to register it and run enforcement.

What if the debtor is in another country?

International enforcement is more complicated. The U.S. has limited reciprocal arrangements with most countries. We've handled some international matters, but we coordinate with international counsel for substantive foreign work.

What if I don't know where the debtor went?

We run skip-tracing and other investigation to locate the debtor. For most debtors, the location turns up through public records, commercial databases, and targeted investigation.

Can the debtor relitigate the underlying judgment in the new state?

Generally, no. Full faith and credit requires the new state's court to honor the Texas judgment. The debtor can challenge registration only on narrow grounds, usually lack of jurisdiction or service in the original Texas action.

Will my Texas judgment continue to accrue interest while I'm pursuing in another state?

Texas post-judgment interest under Finance Code Chapter 304 keeps accruing on the Texas judgment. The new state's law governs interest accrual on the registered version there.

When does a Texas judgment become dormant?

When no writ of execution has issued within ten years after the judgment was rendered, or within ten years after the most recent writ issued. See Civil Practice & Remedies Code § 34.001.

Can a dormant judgment be revived?

Yes, within two years of dormancy under § 31.006, by writ of scire facias or by an action of debt on the judgment.

What if the two-year revival window has already closed?

It's generally lost. Once the two-year revival window closes, the dormant judgment can no longer be revived as a judgment.

Does interest continue to accrue on a dormant judgment?

Post-judgment interest keeps accruing from the judgment date forward. Whether and how it's calculated through revival depends on the specific facts, and we calculate the running balance through revival for each matter.

How do I avoid dormancy?

Issue writs of execution at appropriate intervals before the ten-year clock runs out. Each issuance restarts the dormancy period, so a creditor can keep a judgment active indefinitely by issuing a writ roughly every nine years.

Can the firm evaluate an old judgment?

Yes. We pull the docket and tell you where the judgment stands against the dormancy and revival deadlines.

Should I take any settlement offer over zero?

Not necessarily. Sometimes turning down a low offer and pressing on produces a materially better recovery. It's a matter-specific call.

What's a typical settlement percentage relative to the full judgment?

It varies widely. For asset-constrained debtors, 50% to 80% of the balance is common. For debtors with meaningful assets and weak defenses, 80% to the full balance is common. For severely constrained debtors where the alternative is no recovery, 20% to 40% of the balance is common.

What if the debtor's lawyer threatens bankruptcy if I don't settle?

That threat is sometimes real and sometimes just a negotiating tactic. We weigh how credible it is against the debtor's actual circumstances. A real bankruptcy threat from a debtor with limited assets often justifies taking a discount; a tactical one often doesn't.

How does post-judgment interest factor into settlement?

Negotiations usually address the full running balance: principal, interest, costs, and fees. The negotiated payment is then allocated under the settlement terms.

What if I settle and the debtor doesn't perform?

A well-drafted installment settlement includes acceleration provisions, a default judgment held in escrow, and other protections.

What's the firm's role in settlement?

We negotiate on your behalf within the parameters you authorize. We give you our analysis of what an offer is worth and how likely continued pursuit is to do better. The decision to settle is yours.

How long do I have to sue on a contract?

Generally four years under Texas Civil Practice & Remedies Code § 16.051. The clock usually starts when the debt becomes due.

How long do I have to sue on an oral contract?

The same four-year period generally applies under § 16.051.

How long do I have to sue on an unjust enrichment claim?

Two years under § 16.003.

How long do I have to file a § 51.003 deficiency suit?

Two years from the date of the foreclosure sale.

How long is a Texas judgment good for?

Ten years from entry, with renewal extending it. After dormancy (no writ in ten years), you have two more years to revive it.

How long for a non-dischargeability adversary proceeding?

60 days after the first date set for the meeting of creditors under § 341.

What if the borrower made a recent payment or written acknowledgment?

Under § 16.065, a written acknowledgment of the debt signed by the debtor can extend or revive the limitations period under specific conditions.

What's the lookback for fraudulent-transfer claims?

Generally four years under the Texas Uniform Fraudulent Transfer Act, with a one-year reach for certain insider transfers.

What property is exempt from execution in Texas?

Texas exempts the homestead (with constitutional and statutory definitions), specified personal property up to dollar limits, retirement accounts, certain insurance proceeds, certain trust property, and several other categories. Texas exemptions are notably generous compared with many other states.

Is the homestead reachable?

Generally, no. Texas's homestead exemption protects it from most creditors. We usually leave the homestead alone and go after other reachable assets.

Are retirement accounts reachable?

Texas exempts qualifying retirement accounts under Texas Property Code § 42.0021. Some accounts qualify and some don't. We evaluate them and pursue the ones that don't.

Are wages garnishable?

Texas doesn't allow wage garnishment for most ordinary commercial debts. Wages can be reached by some indirect means, such as turnover of paychecks once they're received and deposited, but wage garnishment as such is generally off the table.

Are bank accounts reachable?

Generally, yes, through garnishment, with some specific exemptions for federally protected funds (Social Security, certain veterans' benefits) that take analysis.

Are vehicles reachable?

Texas exempts a limited dollar value of personal property, so high-value vehicles, multiple vehicles, and commercial vehicles are usually reachable through writs of execution.

Are business interests reachable?

Generally, yes, through charging orders, turnover orders, and, for corporate stock, execution. The mechanics depend on the entity type.

What about brokerage and investment accounts?

Generally reachable through garnishment or turnover. Qualified retirement accounts have specific exemption protection; non-qualified accounts are usually reachable.

What about non-homestead real property?

Reachable. Vacation homes, rental properties, investment property, raw land, and commercial real estate held personally are all reachable through abstract recording and judgment lien foreclosure.

Can I reach the debtor's spouse's assets?

It depends on how the community property is managed. Community property under the debtor spouse's sole management, and jointly managed community property, is generally reachable for that spouse's debts. The other spouse's sole-management community property is usually protected, except for necessaries or torts. We analyze the management characterization for each matter.

What if the spouse holds title to assets?

Texas community-property analysis looks at what is community property regardless of how it's titled. Property held in one spouse's name may still be community property reachable for the other spouse's debts.

What about the spouse's separate property?

Property the spouse owned before marriage, or received by gift or inheritance, is usually separate property, and that calls for a different reachability analysis. We handle spousal-property issues on a matter-specific basis.

What about a guaranty signed by the spouse?

Spousal guaranties are enforceable in Texas, and recovery against community property is generally available. Some spousal guaranties signed at the same time as the underlying loan are subject to specific consumer-protection rules.

Does divorce affect collection?

A debt incurred during marriage can generally be pursued against community property and against either spouse personally if that spouse signed. A post-divorce decree allocating debt between the spouses is between them; it generally doesn't bind the creditor without the creditor's consent.