Start My Answer

How to Get Debt Relief in Texas

Sarah Edwards | October 19, 2022

Sarah Edwards
Legal Expert
Sarah Edwards, BS

Sarah Edwards is a professional researcher and writer specializing in legal content. An Emerson College alumna, she holds a Bachelor of Science in Communication from the prestigious Boston institution.

Edited by Hannah Locklear

Hannah Locklear
Editor at SoloSuit
Hannah Locklear, BA

Hannah Locklear is SoloSuit’s Marketing and Impact Manager. With an educational background in Linguistics, Spanish, and International Development from Brigham Young University, Hannah has also worked as a legal support specialist for several years.

SoloSuit is on its way to rescue you from debt

Summary: If you're struggling with debt in Texas, SoloSuit can help you find the relief you need.

Texas is among the most populous and economically diverse states. With a population of over 29 million and an economy larger than many countries, The Lone Star state is undoubtedly a force to be reckoned with.

However, not all is rosy in the state of Texas. Like many other states, it has been hit hard by the economic downturn. This has led to sharply increased levels of debt for plenty of Texans.

It's no wonder that many Texans are struggling to make ends meet. Luckily, there are multiple options available for those who need help getting out of debt. We will go through some of the most popular methods for getting debt relief in Texas.

Let's get started.

What's debt relief?

This is the process of reducing or eliminating debt. It can be done through various means, such as negotiating with creditors, consolidating debt, or filing for bankruptcy.

No matter what method you choose, debt relief aims to help you get out of debt and improve your financial situation.

What are the leading types of debt in Texas?

There are a few different types of debt that are common in Texas. These include:

  • Credit card debt: This is one of the common types of debt in the state. According to the FED, the average Texan has $6,139 in credit card debt.
  • Medical debt: Also a major problem in Texas, with over 26% of Texans having medical debt that they're struggling to pay off.
  • Student loan debt: The state ranks fourth in the nation for student loan debt, with an average balance of $30,549 per borrower, making student debt another significant problem in Texas.
  • Auto loan debt: Auto loan debt is a widespread issue in Texas. According to the Federal Reserve, the average Texan has $23,515 in auto loan debt.
  • Mortgage debt: This is the largest debt the average debt holder in Texas carries.

Each of these types of debt can be a major problem, but they are an even bigger issue when you combine them. This is why it's important to get debt relief if you're struggling with debt in Texas.

These are the most effective methods of debt relief

Now that we've looked at the most common types of debt in Texas, let's look at some of the most effective debt relief methods. These options may not work for everyone, but at least one of them should help you get the financial help you may be seeking.

Utilize these Texas debt relief programs

As a Texas resident, you should be proud to know that you may qualify for state-specific services that help Texans who are financially struggling. Check out these Texas debt relief programs to see if you are eligible:

  • Lone Star Card: Texas Electronic Benefit Transfer (EBT) system uses the Lone Star Card to provide access to Supplemental Nutrition Assistance Program (SNAP) food benefits and Temporary Assistance for Needy Families (TANF) cash benefits.
  • Temporary Assistance for Needy Families (TANF): Provides cash payments to help families pay for food, clothing, housing and other essentials.
  • Repatriation Program: Provides temporary assistance, in the form of a loan, to qualified U.S. citizens and their dependents. Recipients must be identified by the U.S. Department of State as having returned from a foreign country because of destitution, illness, war, invasion, or similar crisis, or are without resources.
  • Feeding Texas: This is the largest hunger-relief organization in Texas, involving a network of 21 member food banks that reaches over 5 million Texans annually with food and resources.
  • Supplemental Nutrition Assistance Program (SNAP): Helps people buy the food they need for good health. People also can buy garden seeds with SNAP benefits.
  • Private Student Loan Relief: Provides a network of financial counselors who link troubled families with trustworthy agencies for financial assistance with private student loans.

Debt consolidation can help you simplify your payments

Debt consolidation is taking multiple debts and combining them into one single payment. This can be done by taking out a debt consolidation loan or using a balance transfer credit card.

Pros and Cons of Debt Consolidation



It can reduce your interest rate

You may not be eligible if you have bad credit

It can make your debt more manageable

You may end up paying more in the long run

You have only one monthly payment

The goal here is to make your debt more manageable by reducing your interest rate and giving you one monthly payment to make.

Debt settlement can help you reduce the amount you owe

According to the Federal Trade Commission, debt settlement is negotiating with your creditors to agree on a reduced payoff amount.

This can be handled by you alone or with the help of a debt settlement company.

Pros and Cons of Debt Settlement



It may help you pay off your debt more quickly

You may not be eligible if you have bad credit

It can reduce the debt you owe

Creditors may not agree to a settlement

You don't have to worry about dealing with debt collectors if you hire a debt settlement company

The IRS considers the difference between the settlement amount and the original amount as taxable income

The goal of debt settlement is to get your creditors to agree to a lower payoff amount to pay off your debt quickly.

Debt management plans can help you feel in charge again

If you find it difficult to make your monthly debt payments, a debt management plan (DMP) may be ideal. A DMP is a repayment plan managed by a credit counseling agency.

Pros and Cons of Debt Management Plans



It can help you get out of debt

It may damage your credit score

You have one affordable monthly payment

It could be a lengthy process

The goal of a DMP is to help you get out of debt by reducing your interest rate and giving you one affordable monthly payment.

Debt counseling is a great, free option

If you're drowning in debt, you may want to consider debt counseling. Debt counseling is a process of working with a credit counselor to create a budget and develop financial skills.

Pros and Cons of Debt Counseling



It can help you get out of debt

It may be a lengthy process

It can improve your financial situation

There may be a fee

Debt counseling aims to help you get out of debt and improve your financial situation.

Bankruptcy can help as a last resort

When looking at bankruptcies, there are two main types that you can file: Chapter 13 and Chapter 7. Usually, bankruptcy is the last resort for debt relief. Let's break each type down in detail.

Chapter 13 enables you to reorganize your debt and create a repayment plan. This type of bankruptcy is suitable for those with a regular income who struggle with a large amount of debt.

On the other hand, Chapter 7 bankruptcy allows you to liquidate your assets to pay off your debt.

Pros and Cons of Chapter 7 Bankruptcy



It can help you get out of debt

It will damage your credit score

It can give you a fresh start

The process can be lengthy and complicated

This type of bankruptcy is recommended for those who don't have a regular income or large equity in their home.

Texas debt collection laws can protect you

Along with the Federal Debt Collection Practices Act (FDCPA), which protects consumers like you from abusive debt collection practices, Texas also has debt collection laws in place to shield you from unfair debt collection tactics.

The statute of limitations is the time period that a debt collector has to sue someone for a debt. So, if the statute of limitations on a debt is passed, you cannot be taken to court over it. This law keeps consumers safe from unfair prosecution of old debts.

Before you make any payments to a debt collector, which would restart the clock on the statute of limitations, you should figure out the statutes of limitations for different types of debt in Texas:

Texas Statute of Limitations
on Debt

Debt Type



4 years


4 years

On Account

4 years

Source: Findlaw

What's the best method of debt relief for you?

The best method of debt relief for you will depend on your unique situation. If monthly debt payments prove challenging, a debt management plan may be the best option.

No matter what debt relief method you choose, it's important to remember that it's a process, and it'll take time to get out of debt. Be patient and stay focused on your goal, and you'll end up debt-free. If you need help responding to a lawsuit, we can help.

SoloSuit is a service that helps you respond to a debt collection lawsuit. Visit us for more information and to learn how to get started.

What is SoloSuit?

SoloSuit makes it easy to fight debt collectors.

You can use SoloSuit to respond to a debt lawsuit, to send letters to collectors, and even to settle a debt.

SoloSuit's Answer service is a step-by-step web-app that asks you all the necessary questions to complete your Answer. Upon completion, we'll have an attorney review your document and we'll file it for you.

Respond with SoloSuit

"First time getting sued by a debt collector and I was searching all over YouTube and ran across SoloSuit, so I decided to buy their services with their attorney reviewed documentation which cost extra but it was well worth it! SoloSuit sent the documentation to the parties and to the court which saved me time from having to go to court and in a few weeks the case got dismissed!" – James

Get Started

We have answers.
Join our community of over 40,000 people.

You can ask your questions on the SoloSuit forum and the community will help you out. Whether you need help now or are just looking for support, we're here for you.

Ask a Question

>>Read the FastCompany article: Debt Lawsuits Are Complicated: This Website Makes Them Simpler To Navigate

>>Read the NPR story on SoloSuit. (We can help you in all 50 states.)

How to answer a summons for debt collection in your state

Here's a list of guides for other states.

All 50 states.

Guides on how to beat every debt collector

Being sued by a different debt collector? Were making guides on how to beat each one.

Win against credit card companies

Is your credit card company suing you? Learn how you can beat each one.

Going to Court for Credit Card Debt — Key Tips

How to Negotiate Credit Card Debts

How to Settle a Credit Card Debt Lawsuit — Ultimate Guide

Get answers to these FAQs

Need more info on statutes of limitations? Read our 50-state guide.

Why do debt collectors block their phone numbers?

How long do debt collectors take to respond to debt validation letters?

What are the biggest debt collector companies in the US?

Is Zombie Debt Still a Problem in 2019?

SoloSuit FAQ

If a car is repossessed, do I still owe the debt?

Is Portfolio Recovery Associates Legit?

Is There a Judgment Against Me Without my Knowledge?

Should I File Bankruptcy Before or After a Judgment?

What is a default judgment?— What do I do?

Summoned to Court for Medical Bills — What Do I Do?

What Happens If Someone Sues You and You Have No Money?

What Happens If You Never Answer Debt Collectors?

What Happens When a Debt Is Sold to a Collection Agency

What is a Stipulated Judgment?

What is the Deadline for a Defendants Answer to Avoid a Default Judgment?

Can a Judgement Creditor Take my Car?

Can I Settle a Debt After Being Served?

Can I Stop Wage Garnishment?

Can You Appeal a Default Judgement?

Do I Need a Debt Collection Defense Attorney?

Do I Need a Payday Loans Lawyer?

Do student loans go away after 7 years? — Student Loan Debt Guide

Am I Responsible for My Spouses Medical Debt?

Should I Marry Someone With Debt?

Can a Debt Collector Leave a Voicemail?

How Does Debt Assignment Work?

What Happens If a Defendant Does Not Pay a Judgment?

How Does Debt Assignment Work?

Can You Serve Someone with a Collections Lawsuit at Their Work?

What Is a Warrant in Debt?

How Many Times Can a Judgment be Renewed in Oklahoma?

Can an Eviction Be Reversed?

Does Debt Consolidation Have Risks?

What Happens If You Avoid Getting Served Court Papers?

Does Student Debt Die With You?

Can Debt Collectors Call You at Work in Texas?

How Much Do You Have to Be in Debt to File for Chapter 7?

What Is the Statute of Limitations on Debt in Washington?

How Long Does a Judgment Last?

Can Private Disability Payments Be Garnished?

Can Debt Collectors Call From Local Numbers?

Does the Fair Credit Reporting Act Work in Florida?

The Truth: Should You Never Pay a Debt Collection Agency?

Should You Communicate with a Debt Collector in Writing or by Telephone?

Do I Need a Debt Negotiator?

What Happens After a Motion for Default Is Filed?

Can a Process Server Leave a Summons Taped to My Door?

Learn More With These Additional Resources:

Need help managing your finances? Check out these resources.

How to Make a Debt Validation Letter - The Ultimate Guide

How to Make a Motion to Compel Arbitration Without an Attorney

How to Stop Wage Garnishment — Everything You Need to Know

How to File an FDCPA Complaint Against Your Debt Collector (Ultimate Guide)

Defending Yourself in Court Against a Debt Collector

Tips on you can to file an FDCPA lawsuit against a debt collection agency

Advice on how to answer a summons for debt collection.

Effective strategies for how to get back on track after a debt lawsuit

New Hampshire Statute of Limitations on Debt

Sample Cease and Desist Letter Against Debt Collectors

The Ultimate Guide to Responding to a Debt Collection Lawsuit in Utah

West Virginia Statute of Limitations on Debt

What debt collectors cannot do — FDCPA explained

Defending Yourself in Court Against Debt Collector

How to Liquidate Debt

Arkansas Statute of Limitations on Debt

Youre Drowning in Debt — Heres How to Swim

Help! Im Being Sued by My Debt Collector

How to Make a Motion to Vacate Judgment

How to Answer Summons for Debt Collection in Vermont

North Dakota Statute of Limitations on Debt

ClearPoint Debt Management Review

Indiana Statute of Limitations on Debt

Oregon Eviction Laws - What They Say

CuraDebt Debt Settlement Review

How to Write a Re-Aging Debt Letter

How to Appear in Court by Phone

How to Use the Doctrine of Unclean Hands

Debt Consolidation in Eugene, Oregon

Summoned to Court for Medical Bills? What to Do Next

How to Make a Debt Settlement Agreement

Received a 3-Day Eviction Notice? Heres What to Do

How to Answer a Lawsuit for Debt Collection

Tips for Leaving the Country With Unpaid Credit Card Debt

Kansas Statute of Limitations on Debt Collection

How to File in Small Claims Court in Iowa

How to File a Civil Answer in Kings County Supreme Court

Roseland Associates Debt Consolidation Review

How to Stop a Garnishment

Debt Eraser Review

Do Debt Collectors Ever Give Up?

Can They Garnish Your Wages for Credit Card Debt?

How Often Do Credit Card Companies Sue for Non-Payment?

How Long Does a Judgement Last?

​​How Long Before a Creditor Can Garnish Wages?

How to Beat a Bill Collector in Court