Texas Commercial Debt Collection Laws

The collection of commercial debt is a specialized field. There are many laws that regulate the process that you should be aware of before attempting to collect on any commercial debts. In this article, we will discuss Texas commercial debt collection laws in detail. As well as strategies to obtain the best result possible.

Definition of Commercial Debt

A commercial debt is a debt that is owed by a business entity. A commercial debtor may be an individual, partnership or corporation.

Commercial debts are different from personal debts because they can be recovered by third parties such as collection agencies or attorneys who specialize in commercial collection laws.

A creditor has the right to recover his/her own property if it has been lost due to negligence or theft by anyone else other than himself/herself without any justification whatsoever (for example: someone breaks into your house).

However, if you cannot recover your lost property yourself then either yourself or another person may sue for damages against those responsible for causing this loss (for example: suing someone who stole money from you).

Time Limit for Filing a Lawsuit – Texas Commercial Debt Collection Laws

In Texas, a lawsuit to collect a commercial debt must be filed within four years of the date when it was incurred. However, there are exceptions to this rule.

If you are filing a lawsuit against a person or entity that is not a natural person (i.e., corporation) then the statute of limitations is extended to five years from when the debt was incurred.

Legal Action for Failure to Pay a Commercial Debt

If a debtor fails to pay a commercial debt, then the creditor may file a lawsuit in civil court. The creditor must file this lawsuit within the time limit set by state law. If they do not, they will lose their right to collect on that debt forever.

A debtor may be able to defend against this type of lawsuit by proving that he or she was not at fault for failing to pay and should not be held responsible for payment under Texas Commercial Debt Collection Laws – Tips On Collecting Commercial Debt

Final Steps And Tips In Regards To Texas Commercial Debt Collection Laws

In the final steps of commercial debt collection, you will want to follow the same procedures as for consumer debt. The only difference is that you should not threaten legal action unless you are prepared to go through with it.

You should always be polite and respectful towards your debtor, as this will increase their willingness to pay up quickly.

If a debtor threatens legal action against you, then simply inform them that they have no grounds for such a claim because of how strictly Texas law regulates commercial collection agencies (or whatever state laws apply).

You should always follow all applicable laws when collecting commercial debts in Texas or any other state.

If You Are Looking To Collect Debt

If you are looking for ways to collect commercial debt, then it is important that you learn about the laws that regulate this process.

Commercial debt refers to money that is owed by a business.

A commercial debt collection agency can help you collect your commercial debt and is regulated by the Federal Trade Commission (FTC). The Texas Business and Commerce Code regulates commercial debt collection in Texas.