In Texas, if a creditor has not attempted to collect on a real estate debt in over three years and has subsequently charged it off, is the debt still valid?

State is Texas.

Asked on March 29, 2018 under Real Estate Law, Texas


SJZ, Member, New York Bar / FreeAdvice Contributing Attorney

Answered 2 years ago | Contributor

In your state (Texas, as you write), they have up to four (4) years to enforce a written contract. Since we presume that a "real estate debt" came out of a written agreement of some kind, after three but less than four years, they still have time to collect on it.
If they have truly charged the debt off (taken a tax deduction or loss for it), they cannot pursue it: a debt may only be charged off when collection is abandoned (or it is too old to collect), and you cannot simultaneously charge off and try to collect. However, proving the  debt was charged off may be difficult.

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