Know Your Rights

Do you have unpaid debt that keeps you up at night? You may have more legal protection than you think. The statute of limitations on debt collection sets a deadline for when a debt collector can legally sue you—and once it expires, your debt becomes time-barred.

Understanding your state’s statute of limitations can help you avoid lawsuits and make informed financial decisions.

What Is the Statute of Limitations on Debt?

The statute of limitations is the legal time limit a creditor or debt collector has to file a lawsuit against you for unpaid debt. Once this period expires, they can still try to collect, but they can’t take you to court.

Key Factors That Determine the Statute of Limitations:
Type of debt – Different debts have different time limits.
Your state’s laws – Each state sets its own statute of limitations.
The state in your contract – Some creditors follow the laws of their home state, not yours.

Important: The court does not track when a debt becomes time-barred. If a collector sues you for an expired debt, you must show up to court with documentation—like payment history and records of communication—to prove the statute of limitations has passed.

Types of Debt & Their Statutes of Limitations

Many states set different time limits depending on the type of debt. Here are the four main categories:

Written Contracts

A signed, legally binding agreement between borrower and creditor.
Examples: Car loans, medical debt, personal loans.

Oral Contracts

A spoken agreement between two parties—harder to enforce legally.
Examples: Informal loans between friends or family.

Promissory Notes

A written promise to pay, including loan terms and interest rates.
Examples: Private student loans, mortgage agreements.

Open-Ended Accounts

A revolving credit line that remains open as long as payments are made.
Examples: Credit cards, personal lines of credit.

*Each state sets different statutes of limitations for these debt types. Check the table below to see your state’s laws!

Should You Pay Debts That Are Past the Statute of Limitations?

Even though collectors can’t sue you after the statute of limitations expires, the debt doesn’t disappear—and it can still affect your credit for up to seven years.

Your Options:

Don’t pay – Collectors can still call, and unpaid debt hurts your credit.
Pay in full – Improves your credit score and stops collection calls.
Settle the debt – Negotiate a lower payment, but get a signed agreement first.
Avoid partial payments – Even a small payment can reset the statute of limitations, making the debt legally collectible again.

*Before making a decision, consult a lawyer to understand your rights.

Each state has different time limits for debt collection lawsuits. Some states apply the same statute of limitations to all debt types, while others set different limits for written contracts, oral agreements, promissory notes, and open-ended accounts.

Remember: Some creditors follow the statute of limitations in their home state, not yours. Always check which laws apply to your debt before taking action.

*Find your state’s statute of limitations in the table below: