Old Debt and the Statute of Limitations

What the statute of limitations does

The statute of limitations is the deadline for a creditor or collector to sue you over a debt. Most states set it between three and six years, and some are longer. The period can depend on the type of debt (a written contract, a credit card treated as an open account, a promissory note), on where you live, and sometimes on which state's law your credit agreement names.

A debt that's past the limit is called time-barred. It isn't erased: in most states a collector can still call or write and ask you to pay, as long as it follows the collection rules. What it can't do is sue you or threaten to. Filing a lawsuit on a time-barred debt violates federal collection law, but a court won't apply the time limit on its own. If you're sued, it's up to you to raise it, and if you don't respond, the collector can win by default.

Each state's limits are listed on our state law pages, with notes where courts treat credit card debt differently from other written contracts.

When the clock starts, and what can restart it

The rules here vary by state more than anywhere else, so treat the following as questions to check, not answers. Start with your own records: the date of your last payment and the date the account first went past due are the two facts every one of these rules turns on, and a collector's letter may not show them.

• Start date: in some states the clock starts when you first missed a required payment; in others it starts from your most recent payment, even one made to a collector.
• Partial payments: in some states, paying any amount on an old debt, however small, restarts the period. The FTC warns that a payment, or in some states even a promise to pay, can revive a time-barred debt.
• Acknowledging the debt: in some states, admitting in writing that you owe it can restart the clock.
• Moving: changing states can change which time limit applies.

The legal limit is not the credit report limit

So a debt can be too old to sue on and still show on your credit report, or drop off your report while a collector can still sue. Paying an old collection doesn't remove it from your report early, though the account may then be updated as paid. A court judgment is different: it can be reported for seven years or until the statute of limitations runs out, whichever is longer. Funditia explains what credit reports contain.

Zombie debt and how to handle it

"Zombie debt" is an old debt that comes back to life: often bought cheaply by a debt buyer years after you stopped paying, sometimes with thin records. It may be time-barred, already paid or settled, discharged in bankruptcy, belong to someone with a similar name, or be a scam outright.

1. 1 Don't pay or confirm anything on the first call. Ask for the collector's name, address and phone number, and wait for the written validation notice.
2. 2 Check the dates. Find your last payment and when the account first went delinquent, using old statements and your credit reports.
3. 3 Look up your state's time limit and whether a payment or acknowledgment restarts it there.
4. 4 Dispute in writing within 30 days of the validation notice if anything is wrong or you don't recognize the debt; the collector must pause collection until it verifies.
5. 5 If you're sued, respond. Raise the statute of limitations as a defense and consider contacting legal aid or a consumer attorney.

Your full set of rights, from call limits to how to complain, is in debt collectors and your rights. If a caller threatens arrest or demands payment by gift card, it isn't a real collector; see loan and debt scams.

Should you pay a time-barred debt?

That's your choice; the debt is still yours even if a court can no longer enforce it. Some people pay to close the chapter. If you do, first confirm the debt is really yours and the amount is right, understand whether paying could restart the clock in your state, and get any settlement offer in writing before you send money. Pay in a way you can trace, never with a gift card or a wire to a stranger.

If several old and current debts are involved, a nonprofit credit counselor can help you decide what to pay first. Compare the options in debt settlement vs consolidation, and keep in mind that forgiven debt can be taxable.

Common questions