State-by-State Statute of Limitations Guide
Statutes of limitations for debt collection vary by state and by the type of debt involved. Knowing your state’s statute of limitations can significantly affect your legal risk.
“Two people with the same debt can face very different outcomes depending on where they live,” says Mathew Higbee.
Why State Law Matters
Some states allow creditors to sue after only three years, while others allow six, ten, or more years. Credit cards may be treated as open accounts in one state and written contracts in another.
In addition, some states allow actions—such as partial payments—to restart the statute, while others do not.
What Is a Time-Barred Debt?
A time-barred debt is a debt that is past the statute of limitations. While collectors may still attempt voluntary collection, they cannot legally sue or threaten to sue over a time-barred debt.
Despite this, many consumers pay time-barred debts simply because they are unaware of their rights.
Why Lawsuits Increase as the Deadline Approaches
As the statute of limitations approaches expiration, creditors and debt buyers often increase lawsuit filings. Filing before the deadline preserves their ability to collect through a judgment that can last many years.
Because of these variations, consumers should not rely on general assumptions about how long a creditor has to sue.
You can see whether your specific debt may still be enforceable or check your state’s statute of limitations here.