What Is the Statute of Limitations on Debt?
Written by
Jacob Wade
Edited by
Melanie Grafil, M.A., CHFC™
Commitment to Our Readers
GOBankingRates' editorial team is committed to bringing you unbiased reviews and information. We use data-driven methodologies to evaluate financial products and services - our reviews and ratings are not influenced by advertisers. You can read more about our editorial guidelines and our products and services review methodology.
20 Years
Helping You Live Richer
Reviewed
by Experts
Trusted by
Millions of Readers
Most consumer debt has a statute of limitations. This means creditors and debt collectors only have a limited time to collect old debts or file a lawsuit for unpaid debts.
The statute of limitations vary by type of debt and location, but usually anywhere from three to 10 years. This statute helps protect consumers from indefinite pursuit of old debts, while giving creditors a reasonable window to act.
Here’s a breakdown of how the statute of limitations works on your debts, how different types of debts have different statutes and what happens if the statute of limitations on your debt expires.
How the Statute of Limitations on Debt Works
When you miss a payment or end up in default on a loan, credit line or other debt, you have effectively “started the clock” on your debt’s statute of limitations. The status of limitations measures how long your creditor — or a debt collector — has to sue you for payment on an old debt.
If you fail to repay the debt and your creditor fails to sue and collect on your debt owed, once the statute of limitations expires, your creditor can no longer win in court to collect on your debts.
For Example
If you owe money on a personal loan and missed a payment on April 2, 2025 — if the statute of limitations is 6 years in your state — your creditor can no longer place a lien on your assets or garnish your wages after April 2, 2031.
You can accidentally reset your statute of limitations time clock by making a payment on your outstanding debt. Using the example above, this means your creditor would have another six years to sue you for payment.
You might accidentally extend the statute of limitations by simply acknowledging the debt is yours over the phone, so make sure to avoid verbal confirmation of a debt as well. In general, if you suspect a debt is near the statute of limitations, then avoid taking any actions on the debt, and possibly consult with a lawyer if needed.
Statute of Limitations on Debt by State and Debt Type
The statute of limitations will vary based on the type of debt being collected, as well as the state you reside in. There are four main types of debt to consider when researching the statute of limitations on your specific debt:
1. Oral Agreements
If you agree to pay back a debt with a verbal agreement or a handshake, you’re still legally liable to pay it back.
2. Promissory Notes
This is a written agreement to pay back a debt by a specific date.
3. Revolving
Credit cards and lines of credit are revolving debts with specific statutes of limitations.
4. Written Contracts
This is an agreement to pay back a debt as part of a larger contract, usually when buying a home, car or other large purchase.
| State | Revolving accounts | Oral agreements | Promissory notes | Written contracts |
|---|---|---|---|---|
| Alabama | 3 years | 6 years | 6 years | 6 years |
| Alaska | 3 years | 3 years | 3 years | 3 years |
| Arizona | 3 years | 3 years | 6 years | 6 years |
| Arkansas | 5 years | 3 years | 5 years | 5 years |
| California | 4 years | 2 years | 4 years | 4 years |
| Colorado | 3 years | 3 years | 3 years | 3 years |
| Connecticut | 3 years | 3 years | 6 years | 6 years |
| Delaware | 3 years | 3 years | 3 years | 3 years |
| Washington D.C. | 3 years | 3 years | 3 years | 3 years |
| Florida | 4 years | 5 years | 4 years | 5 years |
| Georgia | 4 years | 4 years | 4 years | 6 years |
| Hawaii | 6 years | 6 years | 6 years | 6 years |
| Idaho | 4 years | 4 years | 5 years | 5 years |
| Illinois | 5 years | 5 years | 10 years | 10 years |
| Indiana | 6 years | 6 years | 6 years | 6 years |
| Iowa | 5 years | 5 years | 10 years | 10 years |
| Kansas | 5 years | 3 years | 5 years | 5 years |
| Kentucky | 5 years | 5 years | 10 years | 15 years |
| Louisiana | 3 years | 10 years | 10 years | 10 years |
| Maine | 6 years | 6 years | 20 years | 6 years |
| Maryland | 3 years | 3 years | 3 years | 3 years |
| Massachusetts | 6 years | 6 years | 6 years | 6 years |
| Michigan | 6 years | 6 years | 6 years | 6 years |
| Minnesota | 6 years | 6 years | 6 years | 6 years |
| Mississippi | 3 years | 3 years | 3 years | 3 years |
| Missouri | 5 years | 6 years | 3 years | 10 years |
| Montana | 5 years | 5 years | 5 years | 8 years |
| Nebraska | 4 years | 4 years | 5 years | 5 years |
| Nevada | 4 years | 4 years | 3 years | 6 years |
| New Hampshire | 3 years | 3 years | 6 years | 3 years |
| New Jersey | 6 years | 6 years | 6 years | 6 years |
| New Mexico | 4 years | 4 years | 4 years | 6 years |
| New York | 6 years | 6 years | 6 years | 6 years |
| North Carolina | 3 years | 3 years | 3 years | 3 years |
| North Dakota | 6 years | 6 years | 6 years | 6 years |
| Ohio | 6 years | 6 years | 6 years | 8 years |
| Oklahoma | 5 years | 3 years | 6 years | 5 years |
| Oregon | 6 years | 6 years | 6 years | 6 years |
| Pennsylvania | 4 years | 4 years | 4 years | 4 years |
| Rhode Island | 10 years | 10 years | 10 years | 10 years |
| South Carolina | 3 years | 3 years | 3 years | 3 years |
| South Dakota | 6 years | 6 years | 6 years | 6 years |
| Tennessee | 6 years | 6 years | 6 years | 6 years |
| Texas | 4 years | 4 years | 4 years | 4 years |
| Utah | 4 years | 4 years | 4 years | 6 years |
| Vermont | 6 years | 6 years | 14 years | 6 years |
| Virginia | 3 years | 3 years | 6 years | 5 years |
| Washington | 6 years | 3 years | 6 years | 6 years |
| West Virginia | 5 years | 5 years | 6 years | 10 years |
| Wisconsin | 6 years | 6 years | 10 years | 6 years |
| Wyoming | 6 years | 8 years | 10 years | 10 years |
What Happens When the Statute of Limitations on Debt Expires?
When the statute of limitations expires on your debts, your lender can’t win a lawsuit to garnish your wages or place a lien on your assets to collect on the debt. But this doesn’t mean the collection calls will stop, or that you won’t receive a letter about the debt in the future. Here are a few things that happen once the statute of limitations expires on your debt:
- Loss of legal right to sue: Once the statute of limitations passes, your creditor or debt collector loses their legal right to sue you in court. If they attempt to sue after this period, the statute of limitations serves as your primary legal defense.
- Continued collection attempts: Debt collectors are not prohibited from still trying to collect time-barred debt through calls and letters, though they can no longer win a lawsuit. This means you might still be getting phone calls and letters in an attempt to collect on the debt.
- Credit report impact: An expired statute of limitations on your debt does not automatically remove the debt from your credit report. In fact, negative entries typically remain for about seven to 10 years from the date of original delinquency, which is a separate timeframe from the statute of limitations. This can continue to hurt your credit score, even if the statute of limitations has expired.
What To Do if Debt Is Past the Statute of Limitations
If you have a debt that is past the statute of limitations, here’s what to do:
Don’t Acknowledge or Pay
Your debt collector or creditor might still call you or send collections letters, but it’s important not to take action on these efforts. Even making a small partial payment or simply verbally acknowledging the debt can restart the statute of limitations on your debt.
Verify and Research
Make sure you can substantiate when the statute of limitations began — which is the original date of delinquency or last activity — and research your state’s specific statute of limitations.
Communicate Safely
Inform the collector in writing that the debt is time-barred and you dispute its validity. Consider sending a “Cease and Desist Letter” via certified mail to stop further contact.
Know Your FDCPA Rights
It’s important to know your rights under the Fair Debt Collection Practices Act (FDCPA). This can help you stop abusive or excessive phone calls and force debt collectors to cease incessant phone calls or collection practices.
Seek Legal Counsel
If you want to avoid making any costly mistakes with your expired debts, consulting an attorney is always a good idea. They can help you stop persistent collection efforts or a lawsuit on an expired debt.
Should You Pay a Time-Barred Debt? The Pros and Cons
Pros:
- Moral obligation: You might feel a moral duty to repay your debts.
- Credit impact: If the debt is still on your credit report, paying might — rarely and only with a written agreement — lead to it being reported as “paid” or “settled,” which could offer a marginal credit benefit, but it won’t remove the negative entry.
Cons:
- No legal obligation to pay via lawsuit: Lenders and debt collectors can’t sue you for the debt anymore, so it doesn’t usually make sense to pay it off.
- Financial resources: Your money might be better allocated to current, legally collectible debts or other financial goals.
- Risk of restarting: The risk of inadvertently re-aging the debt is significant if you begin making payments.
Final Thoughts on the Statute of Limitations on Debt
It’s important to know the statute of limitations on your debts. If your creditor fails to collect in a timely manner, you may no longer owe your debt balances, and collectors can’t sue and garnish your wages or force you to pay.
You also need to know that making any payments or even verbally acknowledging your debt can restart your statute of limitations, allowing collections to continue. It may be worth seeking legal counsel if you believe your debts are beyond the statute of limitations.
Our in-house research team and on-site financial experts work together to create content that’s accurate, impartial, and up to date. We fact-check every single statistic, quote and fact using trusted primary resources to make sure the information we provide is correct. You can learn more about GOBankingRates’ processes and standards in our editorial policy.
- Consumer Financial Protection Bureau. 2024. "Can debt collectors collect a debt that's several years old?"
