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Collections and Creditor Rights Attorneys in Texas

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  • 3 firms listed
  • 3 questions answered

Unpaid invoices and defaulted loans tie up working capital, and a business owed money has to decide whether to write off the debt or pursue it. Winning a lawsuit is often the easier part. Collecting a judgment from a debtor who will not pay takes knowledge of Texas enforcement tools and of what Texas law puts out of a creditor’s reach.

Texas protects a lot of debtor property. A homestead is exempt from creditors’ claims without a dollar cap, within acreage limits, except for liens properly fixed on it, such as purchase money, property taxes, and written contracts for improvements that meet statutory requirements (Property Code §§ 41.001, 41.002). Personal property is exempt up to $50,000 for a single adult or $100,000 for a family, and current wages are exempt from garnishment except to enforce court-ordered support (Property Code § 42.001). A collections attorney identifies which assets can actually be reached before the creditor spends money on litigation. See also the guides to bankruptcy attorneys in Texas and commercial litigation attorneys in Texas.

What Collections and Creditor Rights Attorneys Handle

Pre-Suit Collection

Before filing suit, attorneys send demand letters, negotiate payment plans, and assess whether the debtor can pay. Checking limitations and the debtor’s assets early prevents spending on a claim that cannot be collected. Some debts justify immediate suit; others are better settled at a discount.

Collection Litigation

Attorneys sue on unpaid accounts, defaulted loans and notes, breached contracts, dishonored checks, and guaranties. Texas procedure allows suit on a sworn account for goods and services, which shifts certain proof burdens to a defendant who does not deny the account under oath. Summary judgment can resolve cases where the debtor has no real defense.

Judgment Enforcement

Texas enforcement tools include writs of execution to seize and sell non-exempt property, writs of garnishment to reach bank accounts and money owed to the debtor, abstracts of judgment that create liens on the debtor’s non-exempt real property, turnover orders, and turnover receiverships. Post-judgment discovery finds the assets. A judgment becomes dormant if a writ of execution is not issued within 10 years after it is rendered, or if a second writ is not issued within 10 years after the first, unless it is revived (Civil Practice and Remedies Code § 34.001).

Creditor Representation in Bankruptcy

When a debtor files bankruptcy, collection against the debtor generally must stop, with exceptions such as certain domestic support collection (11 U.S.C. § 362(b)). Creditors use counsel to file proofs of claim, protect collateral, seek relief from the stay, object to discharge or dischargeability where appropriate, and evaluate plans. Creditors are also frequently on the defending side of preference lawsuits: the trustee can recover certain payments made to creditors within 90 days before the filing, or within one year for insiders (11 U.S.C. § 547).

How to Choose a Collections Attorney

Certification. Texas lawyers in this field may hold certification in Consumer and Commercial Law from the Texas Board of Legal Specialization, or creditors’ rights certification from a private certifying organization accredited in Texas. Ask what certification the attorney holds and what it covers.

Volume and systems. Collection work involves many similar steps. Ask how the firm handles demand letters, filings, and reporting on many accounts at once.

Enforcement experience. A judgment that is never collected is a cost. Ask about the attorney’s experience with garnishments, turnover orders, and receiverships.

Compliance. The federal Fair Debt Collection Practices Act and the Texas Debt Collection Act apply to consumer debts, meaning obligations primarily for personal, family, or household purposes (Finance Code § 392.001). Business-to-business collection falls largely outside them, though other rules still apply. A creditor collecting consumer accounts needs an attorney who knows those limits.

Texas Collections and Creditor Rights Attorneys

Bell Nunnally & Martin LLP

Location: Dallas, Texas

Website: https://www.bellnunnally.com

Phone: 214-740-1400

Bell Nunnally’s Creditor Rights practice represents institutional lenders, investment companies, construction suppliers, commercial landlords, manufacturers, and business service providers. Attorneys prosecute claims on defaulted loans, promissory notes, leases, guarantees, and unpaid accounts. The practice includes domestication of foreign judgments, pre-judgment remedies to preserve assets, and post-judgment collection through garnishment, turnover orders, and receivership. Attorneys also defend creditors against FDCPA counterclaims, wrongful foreclosure allegations, and usury claims.

Practice Focus:

  • Commercial debt collection litigation
  • Judgment enforcement and receivership
  • Fraudulent transfer claims
  • Creditor bankruptcy representation
  • FDCPA defense

Barnett & Garcia PLLC

Location: Austin and San Antonio, Texas

Website: https://www.barnettgarcia.com

Phone: 512-266-8830

Barnett & Garcia represents creditors, collection agencies, financial institutions, and insurance carriers in commercial debt collection throughout Texas. The practice handles demand, litigation, and post-judgment enforcement including writs of execution, garnishment, and turnover receiverships. Attorneys appear in state courts, federal courts, and alternative dispute forums. The firm brings an efficient approach to collection matters while maintaining the litigation capability to pursue difficult cases.

Practice Focus:

  • Commercial debt collection
  • Judgment enforcement
  • Writs of garnishment and execution
  • Turnover receiverships
  • Creditor representation

Bristol & Dubiel LLP

Location: Dallas, Texas (nationwide representation)

Website: https://www.dallascollectionlawyers.com

Phone: 214-827-1200

Bristol & Dubiel recovers delinquent debts and judgments for businesses throughout the United States and internationally. The practice handles open accounts, defaulted notes, lease obligations, and breach of contract claims. Attorneys domesticate foreign judgments for Texas enforcement and pursue full collection remedies including sequestration, garnishment, turnover orders, and receivership. The firm also provides debt defense to businesses facing collection claims or disputed debts.

Practice Focus:

  • Commercial debt collection
  • Foreign judgment domestication
  • Judgment enforcement remedies
  • Receivership and asset recovery
  • Debt collection defense

Costs and Fees

Collection attorneys use several fee models. Demand letters and routine suits on accounts are often handled for a flat fee or on contingency, where the attorney receives a percentage of what is collected. Contested litigation and complex enforcement, such as receiverships, are usually billed hourly. Many contracts and statutes allow a prevailing creditor to recover attorney’s fees from the debtor, which affects the economics of a claim. Ask for a written fee agreement that explains how costs, contingency percentages, and recovered fees are handled.

Frequently Asked Questions

What is the statute of limitations for debt collection in Texas?

Suits on debt must generally be filed within four years after the claim accrues (Civil Practice and Remedies Code § 16.004), and four years is also the default when no other period applies (§ 16.051). An action on a negotiable note payable at a definite time must be filed within six years after the due date or accelerated due date (Business and Commerce Code § 3.118). After judgment, the creditor must keep the judgment from becoming dormant by issuing writs within the 10-year periods in § 34.001. For consumer debts, trying to collect a time-barred debt can create liability.

Can wages be garnished in Texas?

Not for most debts. Texas exempts current wages except to enforce court-ordered support obligations, and federal law separately allows administrative wage garnishment for certain federal debts, such as federal student loans, and federal tax levies. Once wages are deposited, a bank account can be garnished, but banks must protect up to two months of directly deposited federal benefits such as Social Security (31 C.F.R. Part 212). Liens, turnover orders, and receiverships are other routes.

What happens when a debtor files bankruptcy?

The automatic stay generally stops collection against the debtor and property of the bankruptcy estate, subject to exceptions in 11 U.S.C. § 362(b) and limits for debtors with recently dismissed cases (§ 362(c)). Continuing to collect can lead to sanctions. A personal guarantor who has not filed bankruptcy can usually still be pursued, except in limited situations such as the Chapter 13 co-debtor stay, which protects individuals liable with the debtor on consumer debts (11 U.S.C. § 1301). Creditors should file proofs of claim and review the case for collateral and dischargeability issues.

Sources

Disclaimer: This directory is provided for informational purposes only and does not constitute legal advice, endorsement, or recommendation of any attorney or law firm. Information about attorneys and law firms was compiled from publicly available sources and may not be current or accurate. We make no representations or warranties about the qualifications, experience, or quality of any attorney listed. Always verify attorney credentials with the State Bar of Texas, confirm current contact information, and conduct your own due diligence before hiring legal counsel. No attorney-client relationship is created by use of this directory.