Statutes of Limitations on Debt Collection by State

A statute of limitations on debt is the amount of time a creditor or debt collector has to sue you to try to get you to pay. Rules vary by state, with many having statutes of limitations ranging from three to six years, but some states allowing 10 years to pass before creditors lose their right to legal action.

The court system doesn't keep track of the statute on your debt. Instead, it's your responsibility to prove the debt has passed its statute of limitations.

Time-Barred Debts

The statute of limitations usually starts when you miss a payment. Debts that have passed the statute of limitations are known as time-barred debts. However, just because the debts have aged past the statute of limitations doesn't mean that you no longer owe money or that your credit rating cannot be impacted. It just means the creditor won't get a judgment against you.

If one does try to sue you, you'll need to let the court know that the statute of limitations has run out, and provide some proof. Proof might include a personal check or bank statement showing the last time you made a payment, or your own records of communication that you've made about that debt.

Categories of Debt

Debts fall into different categories. It's important to know which type of debt you have because the time limits are often different for each type. Below are four main types, but some states have even more categories, such as auto loans, which may have separate statutes of limitations.

• Oral agreements: These are debts that were made based on a verbal agreement about repayment, and there is nothing in writing.
• Written contracts: All debts that come with a contract that was signed by you and the creditor fall in the category of a written contract—even if it was written on a napkin. Often a written contract includes the terms and conditions of the loan, such as the loan amount and monthly payment.
  
  But not always. For instance, medical bills may be considered a written contract, even if no repayment terms are included and the bill itself doesn't contain any signatures.
• Promissory notes: A promissory note is a written agreement to pay back a debt in a certain number of payments, at a certain interest rate, and by a certain date and time. Home loans and student loans are two examples of promissory notes.
• Open-ended credit: A revolving account you can repay and then borrow against again is open-ended. Credit cards, in-store credit, and lines of credit are all examples of open-ended accounts.

Statutes of Limitations for Each State

Each state has its own statute of limitations on debt, and they vary depending on the type of debt you have. Usually, it is between three and six years, but it can be as high as 10 or 15 years in some states. Before you respond to a debt collection, find out the debt statute of limitations for your state.

If the statute of limitations has passed, there may be less incentive for you to pay the debt. If the credit reporting time limit also has passed, you may be even less inclined to pay the debt. The credit reporting time limit is how long a debt shows up on your credit report. It is independent of the legal statute of limitations.

Below are the statutes of limitation, measured by years, in each state, as of 2022. Note that in some states, credit card agreements are considered written contracts; but in others, courts have said they're oral contracts because card issuers can change the agreement without consent from the borrower.

*Georgia appeals court cases have found that credit card debt is subject to a six-year period for contracts.

**In Illinois, credit card agreements are considered written contracts with a 10-year statute of limitations. However, the state appeals court ruled in 2011 that the debt collector must provide the defendant's individual credit card agreement, not a generic agreement. If they can't, the five-year statute of limitations for unwritten contracts applies.

***In Kentucky, creditors have 10 years to pay debt recorded in a written contract signed after July 15, 2014, including a credit card application, car loan, or medical treatment paperwork that you signed.

****In Vermont, the statute of limitations for a witnessed promissory note is 14 years, but if the signature is not witnessed, it's six years.

Frequently Asked Questions (FAQs)