Are old bills and zombie debt collection agency phone calls troubling you? How long can creditors, bill collectors and debt collection agencies legally pursue repayment?
Debts do expire according to the statute of limitations of the state. After the debt has exceeded the statue of limitations, debt collectors and not even the original creditors can pursue court ordered repayment. They may; however, continue to call in accordance with collection rules in hopes of getting delinquent borrowers to repay, but they cannot harass nor take legal action after the statue of limitations.
So, if a creditor, lender or debt agency is calling you, before you agree to repay or to reactivate the account, first check to see if the statute of limitations has expired. If so, you might not have to pay.
NOTE: Many people get the statute of limitations confused with the amount of time credit report bureaus can list delinquent items on credit reports. The credit reporting time limit is the max amount of time credit bureaus can report delinquent debts on your credit report. For most types of accounts, it's seven years from the date of delinquency. However, bankruptcies are reported for 10 years and tax liens can be reported for up to 15 years. The credit reporting time limit is dictated by the Fair Credit Reporting Act and does not influence the statute of limitations for collecting a debt.
The statute of limitations for collecting a debt is the period of time that a creditor, lender or collection agency can use legal means to order you to repay a debt. The time period starts on the account’s last date of activity and varies by state. But keep in mind this can be different from the date the account went past due. Your credit report will include the account's last date of activity. As mentioned earlier, even if the statute of limitations has expired some debt collectors will continue to attempt to collect, hoping you don't know about the statute of limitations and you'll repay if they threaten you enough. They may even file a lawsuit against you. If you are certain the statute of limitations has expired, you can use that fact as justification that you do not have to repay the debt.
WARNING: Be careful not to restart the statute of limitations. Anytime you take an action with an account, the statute of limitations is restarted. Actions such as making a payment, making a promise of payment, entering a repayment agreement, or making a charge using the account can restart the statute of limitations. When the clock restarts, it restarts at zero, regardless of how much time had passed before the activity.
Here are the debt statutes of limitations for each state:
Debt Collection Statute Of Limitation by State
State | Oral | Written | Promissory | Open-Ended |
AL | 6 years | 6 years | 6 years | 3 years |
AR | 5 years | 5 years | 5 years | 3 years |
AK | 6 years | 6 years | 3 years | 3 years |
AZ | 3 years | 6 years | 6 years | 3 years |
CA | 2 years | 4 years | 4 years | 4 years |
CO | 6 years | 6 years | 6 years | 3 years |
CT | 3 years | 6 years | 6 years | 3 years |
DE | 3 years | 3 years | 3 years | 4 years |
DC | 3 years | 3 years | 3 years | 3 years |
FL | 4 years | 5 years | 5 years | 4 years |
GA | 4 years | 6 years | 6 years | 6 years ** |
HI | 6 years | 6 years | 6 years | 6 years |
IA | 5 years | 10 years | 5 years | 5 years |
ID | 4 years | 5 years | 5 years | 4 years |
IL | 5 years | 10 years | 10 years | 5 years |
IN | 6 years | 10 years | 10 years | 6 years |
KS | 3 years | 6 years | 5 years | 3 years |
KY | 5 years | 15 years | 15 years | 5 years |
LA | 10 years | 10 years | 10 years | 3 years |
ME | 6 years | 6 years | 6 years | 6 years |
MD | 3 years | 3 years | 6 years | 3 years |
MA | 6 years | 6 years | 6 years | 6 years |
MI | 6 years | 6 years | 6 years | 6 years |
MN | 6 years | 6 years | 6 years | 6 years |
MS | 3 years | 3 years | 3 years | 3 years |
MO | 5 years | 10 years | 10 years | 5 years |
MT | 3 years | 8 years | 8 years | 5 years |
NC | 3 years | 3 years | 5 years | 3 years |
ND | 6 years | 6 years | 6 years | 6 years |
NE | 4 years | 5 years | 5 years | 4 years |
NH | 3 years | 3 years | 6 years | 3 years |
NJ | 6 years | 6 years | 6 years | 3 years |
NM | 4 years | 6 years | 6 years | 4 years |
NV | 4 years | 6 years | 3 years | 4 years |
NY | 6 years | 6 years | 6 years | 6 years |
OH | 6 years | 15 years | 15 years | 6 years |
OK | 3 years | 5 years | 5 years | 3 years |
OR | 6 years | 6 years | 6 years | 6 years |
PA | 4 years | 4 years | 4 years | 4 years |
RI | 10 years | 5 years | 6 years | 4 years |
SC | 3 years | 3 years | 3 years | 3 years |
SD | 6 years | 6 years | 6 years | 6 years |
TN | 6 years | 6 years | 6 years | 3 years |
TX | 4 years | 4 years | 4 years | 4 years |
UT | 4 years | 6 years | 6 years | 4 years |
VA | 3 years | 5 years | 6 years | 3 years |
VT | 6 years | 6 years | 5 years | 3 years |
WA | 3 years | 6 years | 6 years | 3 years |
WI | 6 years | 6 years | 10 years | 6 years |
WV | 5 years | 10 years | 6 years | 5 years |
WY | 8 years | 10 years | 10 years | 8 years |
FOOTNOTES:
If you recently moved, aggressive debt collectors might attempt to use your old home state for the statute of limitations, especially if that time limit is longer than of the state you currently reside. This would give a collector more time to collect on the debt.
Some debts don't have a statute of limitations. This includes federal student loans, child support in some states, and income taxes.
When the statute of limitations expires, it only prevents a collector from winning a judgment against you when you can prove the statute of limitations has indeed expired. It does not:
- Keep a collector from filing a lawsuit against you. It can keep them from winning if you use it against them in court.
- Erase the debt. If the debt is legitimately yours, you still owe it.
- Prevent the debt from being reported on your credit report. The debt can be reported as long as the credit reporting time limit allows.
** Georgia Court of Appeals came out with a decision on January 24, 008 in Hill v. American Express that in Georgia the statute of limitations on a credit card is six years after the amount becomes due and payable
Want to stop creditor calls? Read our article about how to stop credit collector calls.