Statute of Limitations on Debt

Here’s something many people don’t know: debt doesn’t last forever — at least not legally. Every state has a statute of limitations on debt, which limits how long a creditor or collector can sue you to collect what you owe. Once that time runs out, the debt becomes time-barred, meaning the legal threat of a lawsuit goes away. Understanding these time limits can protect you from paying on debts you’re no longer legally required to pay.

What Is the Statute of Limitations on Debt?

The statute of limitations is a legal time limit. Once it expires, a creditor or collection agency can no longer take you to court to force payment. The debt still exists — you technically still owe it — but the legal enforcement tool is gone.

This doesn’t mean collectors will stop contacting you. They can still call and send letters asking for payment. They just can’t threaten to sue or actually sue you once the statute has expired. If they do, that’s a violation of the Fair Debt Collection Practices Act (FDCPA).

How Long Is the Statute of Limitations?

The time limit depends on two things: your state and the type of debt. Most states set the statute of limitations between 3 and 6 years, but some go up to 10 or even 15 years.

Here are some general ranges:

Debt Type	Common Range
Credit card debt	3-6 years
Medical debt	3-6 years
Auto loans	4-6 years
Mortgage debt	6-10 years
Written contracts	3-10 years

The clock typically starts on the date of your last payment or the date of your last account activity, depending on your state’s specific rules.

Because this varies so much by state, it’s important to look up the specific statute of limitations for your state and type of debt. Your state attorney general’s office or a consumer law attorney can help you find the right information.

What Is Zombie Debt?

Zombie debt is old debt that resurfaces long after you’ve stopped thinking about it. It gets its name because it seems to come back from the dead.

This happens when old debts get sold and resold between collection agencies. A collector might buy a batch of expired debts for almost nothing, then try to collect on them — hoping you won’t know your rights.

Zombie debt collectors may try to:

• Convince you the debt is still legally enforceable
• Pressure you into making a small “good faith” payment
• Threaten legal action they can’t actually take
• Scare you into paying debts you’ve already settled or discharged in bankruptcy

The Danger of Restarting the Clock

This is one of the most important things to understand: in many states, making a payment — even a tiny one — on a time-barred debt can restart the statute of limitations. That small “good faith” payment a collector asks for? It could give them a fresh window to sue you.

Actions that might restart the clock include:

• Making any payment on the debt
• Acknowledging the debt in writing
• Entering into a new payment agreement
• In some states, even verbally acknowledging you owe the debt

This is why you should be extremely careful when dealing with old debts. Before making any payment or acknowledgment, make sure you understand whether the statute of limitations has expired and what actions could restart it in your state.

Time-Barred Debt vs Credit Reporting

The statute of limitations and the credit reporting time limit are two separate things. Even if a debt is time-barred (can’t be sued over), it might still appear on your credit report.

• Statute of limitations: Limits legal action. Varies by state. Typically 3-10 years.
• Credit reporting limit: Limits how long negative items stay on your report. Governed by federal law. Typically 7 years from the date of the first missed payment.

A debt can be off your credit report but still within the statute of limitations, or on your credit report but past the statute of limitations. They’re independent timelines.

What to Do If a Collector Contacts You About Old Debt

If you get a call or letter about a debt you don’t recognize or haven’t paid in years:

1. Don’t acknowledge the debt or make any payment. Protect yourself from accidentally restarting the clock.
2. Request debt validation in writing. The collector must prove the debt is yours and provide details about the amount and original creditor.
3. Check the statute of limitations. Look up your state’s rules for that type of debt and calculate whether the time limit has passed.
4. Check your credit report. See if the debt appears and verify the dates.
5. Respond in writing if the debt is time-barred. You can send a letter stating that the debt is past the statute of limitations and you do not intend to pay. Request that the collector stop contacting you.
6. Consult a consumer law attorney if needed. Especially if a collector is threatening to sue on time-barred debt — that’s illegal.

Can You Still Be Sued After the Statute Expires?

Technically, a collector can file a lawsuit on time-barred debt. But if you respond to the lawsuit and raise the expired statute of limitations as a defense, the case should be dismissed. The problem is that many people don’t respond to lawsuits, which can result in a default judgment against them — even on time-barred debt.

This is why it’s critical to respond to any lawsuit you receive, even if you believe the debt is too old to be enforced.

Bottom Line

The statute of limitations sets a time limit on how long creditors can sue you for unpaid debt. Once it expires, the debt is time-barred, but collectors may still try to collect. Be cautious about making payments or acknowledging old debts, as this can restart the clock in many states. Know your rights, request validation, and check your state’s specific rules before taking any action on old debt.