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Statute of Limitations on Debt
Creditors only have a limited amount of time to file a suit against you to recover a debt. That time limit
is called a “statute of limitations” because it is a law (statute) which limits the time in which anyone can
file a lawsuit to recover a debt. Once that time limit has passed, they cannot file a lawsuit against
you. If they try anyway, you can get the lawsuit tossed out of court automatically by appearing at
court and showing copies of your credit report that reflect the last date of activity on your account. By
just letting the collector know that you are aware of the statute of limitations, it will generally stop them
cold.
There are different types of statutes of limitations, depending on the nature of the original agreement
between you and the creditor.
Oral Agreement – This is a verbal agreement between parties who wish to enter into a contract with
each other. Oral agreements are enforceable by law, but it can sometimes be difficult to prove their
existence. These are usually associated with the sale of personal property for smaller amounts of
money.
Written Contract – A written agreement between two or more parties that is binding and enforceable
by law. Real estate deals and insurance policies fall under this category.
Promissory Note – A written document in which the borrower promises to pay a certain amount of
money to the lender according to specified terms. Loans typically fall under this category.
Open-Ended Account – Credit card debt is widely believed to fall under this category, but that is
hotly debated in many state level courts. Some consider credit card debt to be a contract rather than
an open ended account.
Statutes of limitations usually run from the last date of payment or activity on an account and can start
running all over again if you make partial payments on your debt, so be careful to NOT make any new
payments—even token payments—on a debt that is very old. Sometimes collectors will try trick you
into making only a small token payment just so they can start the statute of limitations running again.
What is the statute of limitations for debt in your state? Take a look at the follow list to see how
different states handle different types of agreements. The links go to each state’s government web
site so that you can see the laws for yourself.
Click here to see the table of statutes of limitations on debt.
is called a “statute of limitations” because it is a law (statute) which limits the time in which anyone can
file a lawsuit to recover a debt. Once that time limit has passed, they cannot file a lawsuit against
you. If they try anyway, you can get the lawsuit tossed out of court automatically by appearing at
court and showing copies of your credit report that reflect the last date of activity on your account. By
just letting the collector know that you are aware of the statute of limitations, it will generally stop them
cold.
There are different types of statutes of limitations, depending on the nature of the original agreement
between you and the creditor.
Oral Agreement – This is a verbal agreement between parties who wish to enter into a contract with
each other. Oral agreements are enforceable by law, but it can sometimes be difficult to prove their
existence. These are usually associated with the sale of personal property for smaller amounts of
money.
Written Contract – A written agreement between two or more parties that is binding and enforceable
by law. Real estate deals and insurance policies fall under this category.
Promissory Note – A written document in which the borrower promises to pay a certain amount of
money to the lender according to specified terms. Loans typically fall under this category.
Open-Ended Account – Credit card debt is widely believed to fall under this category, but that is
hotly debated in many state level courts. Some consider credit card debt to be a contract rather than
an open ended account.
Statutes of limitations usually run from the last date of payment or activity on an account and can start
running all over again if you make partial payments on your debt, so be careful to NOT make any new
payments—even token payments—on a debt that is very old. Sometimes collectors will try trick you
into making only a small token payment just so they can start the statute of limitations running again.
What is the statute of limitations for debt in your state? Take a look at the follow list to see how
different states handle different types of agreements. The links go to each state’s government web
site so that you can see the laws for yourself.
Click here to see the table of statutes of limitations on debt.
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