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?
Get Legal Help Today
Compare Quotes From Top Companies and Save
Secured with SHA-256 Encryption
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
Answers:
SJZ, Member, New York Bar / FreeAdvice Contributing Attorney
Answered 6 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.
IMPORTANT NOTICE: The Answer(s) provided above are for general information only. The attorney providing the answer was not serving as the attorney for the person submitting the question or in any attorney-client relationship with such person. Laws may vary from state to state, and sometimes change. Tiny variations in the facts, or a fact not set forth in a question, often can change a legal outcome or an attorney's conclusion. Although AttorneyPages.com has verified the attorney was admitted to practice law in at least one jurisdiction, he or she may not be authorized to practice law in the jurisdiction referred to in the question, nor is he or she necessarily experienced in the area of the law involved. Unlike the information in the Answer(s) above, upon which you should NOT rely, for personal advice you can rely upon we suggest you retain an attorney to represent you.