How to collect unpaid invoices in Texas: state laws, lien rights, and collection strategy

Texas collection calls operate under one-party consent (Tex. Penal Code §16.02), meaning the caller -- or a third party like Syntharra acting on your behalf -- may record the call without disclosing it to the customer. Disclosing anyway is good practice and avoids any confusion about the call's purpose. Texas Fin. Code Ch. 392 governs professional third-party collectors, not to businesses following up on their own invoices, but its prohibitions on deceptive representations and harassment still set a useful standard for how calls should be conducted.

Texas mechanic's lien law is one of the most procedurally demanding in the country. For contractors working directly for a property owner, a lien can be preserved only if monthly notices were sent to the owner and lender on or before the 15th of each month following the month in which labor or materials were furnished. Miss a monthly notice and lien rights for that month's work are gone. After the project is complete, the final lien must be filed in the county clerk's office on or before the 15th day of the 4th calendar month following the month in which the work was last performed. Set these dates in your calendar before mobilization, not after an invoice goes unpaid.

For subcontractors on Texas projects, the notice chain is different and the deadlines are shorter. Subcontractors who lack a direct contract with the property owner must send monthly notices on or before the 15th of the 2nd month following the month in which work was performed -- one month earlier than prime contractors. Filing the lien itself follows the same 15th-day-of-the-4th-month rule. Texas subcontractors who miss these notice requirements lose lien rights entirely and are left only with contract claims against the general contractor.

Texas Justice of the Peace courts hear claims up to $20,000 -- a limit higher than every other state. This makes small claims court a practical option for invoice disputes that would require an attorney in other states. Filing fees are typically $100 to $250. Most hearings are scheduled within 30 to 60 days of filing. Bring the signed contract, invoices, proof of work performed, and documentation of follow-up attempts. Texas courts generally decide these cases on the written evidence, not witness testimony.

The statute of limitations on written contract claims in Texas is 4 years (Tex. Civ. Prac. & Rem. Code §16.004). The clock starts when the breach occurs -- typically when payment was due and not made. Oral contracts have a 2-year limit. For service businesses with recurring customers, the 4-year window means an invoice from 2022 can still be pursued in 2026, but do not count on recovering invoices older than 18 months in practice: evidence fades, customers dispute more aggressively, and courts weigh delay against the claimant.