The statute of limitations is the time a creditor or collector has to sue you over a debt. It's set by state law, usually somewhere between three and six years, and longer in some states. After it runs out, the debt is "time-barred."
Two different clocks
| Statute of limitations | Credit reporting limit | |
|---|---|---|
| What it controls | How long you can be sued | How long the account can appear on your credit report |
| Set by | Your state | Federal law (the Fair Credit Reporting Act) |
| Typical length | Usually 3 to 6 years, varies by state and type of debt | 7 years from the date you first fell behind |
A debt can be too old to sue on and still show on your credit report, or the other way around.
What collectors can and can't do with time-barred debt
- In most states, the debt doesn't disappear. A collector can still ask you to pay.
- Under federal rules, a debt collector can't sue you or threaten to sue you over a time-barred debt.
- If you're sued on a time-barred debt, you usually have to raise the statute of limitations as a defense in court. If you ignore the lawsuit, the collector can win by default.
Be careful: the clock can restart
In some states, making a payment, or even acknowledging the debt in writing, can restart the statute of limitations. Before paying anything on an old debt, find out your state's rule.
What to do when a collector contacts you
- Don't confirm or pay anything on the first call. Ask for the collector's name, address and the account details.
- Read the validation notice. Collectors must send you one. It lists the creditor, the amount and your rights.
- Dispute in writing if anything looks wrong. If you dispute within the validation period, the collector has to stop collecting until it sends you verification.
- Check the dates. Find the date you first fell behind on your credit report and compare it with your state's statute of limitations.
- Get help if you're sued. Respond by the deadline on the court papers. Legal aid offices can help for free if you qualify.
Where to find your state's limit
Your state attorney general's website or a local legal aid office can tell you the statute of limitations for your type of debt. Limits often differ for credit cards, written contracts, medical bills and court judgments.