Quick Answer: Debt collectors in Texas cannot garnish wages for credit card debt, and debts over four years old may be time-barred under the statute of limitations. The homeowner owes $10,000 to American Express but should avoid making payments or promises to pay, which could restart the statute of limitations clock.
Question:
Dear Steve,
Got an American Express card back in 2007 (I think). Got divorced, hadn’t worked in 20 years. Tried to open a restaurant lost all my money, couldn’t find a job, found one in 2013 part time. Finally found full time but I’m still not making enough money to pay off this debt.
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I was making payments for two years and now they have a debt collector after me. I guess the time expired and they tried to contact me. When I called them back they had already sent it to a debt collector and I asked her if i could have the same plan and she said no and started asking me lots of personal questions so I hung up. I owe $10,000.00
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What can they do to me? The only asset i have is my house. Can they attach anything to my house. I live in Texas.
Lisa
Answer:
Dear Lisa,
I am not a lawyer and can’t give you legal advice. You’d need to speak with an attorney who is licensed in Texas for specific legal advice. What I can share are some observations about your situation.
If you have not made a payment on this debt for four years, the creditor might not be able to sue you for the old debt since it may have expired from under the statute of limitations and be time barred.
Do not make a promise to pay or make a payment on this debt if you want to rely on this defense if the creditor does sue you.
Additionally, you are luck you live in Texas. Your wages can’t be garnished over this debt. For more information, click here.
Quite frankly, I think the best plan of action would be for you to find a local attorney who is licensed in your state and pay them a consultation fee to evaluate your specific situation. It would be money well spent.
If this debt is part of a lingering crop of bad debts that is following you, it might be time to think about filing bankruptcy and getting a clean slate so you can start over.
Know Your Rights: If a debt collector is contacting you, you have legal protections. See the complete list of FDCPA violations collectors commit most often. Use the free Debt Validation Letter Generator to demand proof of the debt, or check this collector’s complaint history with the Scam-O-Meter.
Dealing With Debt? Before you pay a collector, understand all your debt relief options — including ones the collector won’t tell you about. If the debt feels unmanageable, take the 2-minute bankruptcy quiz to see if the math favors a fresh start. Federal Reserve research shows filers recover faster than those who don’t file.
