What a statute of limitations does
A statute of limitations sets a deadline for filing a lawsuit to collect a debt. The Consumer Financial Protection Bureau explains that a debt does not generally expire until it is paid, but many states cap how long creditors or collectors can sue you over it, most often between three and six years. The clock usually starts on the date of your last payment or the date you missed a payment, though the exact start date depends on the type of debt and the state. Once the deadline passes, the debt becomes what is often called time barred. You may still owe the money, but the creditor generally loses its ability to win a lawsuit over it if you raise the expired deadline as a defense in court.
How this differs from your credit report
A state statute of limitations is a separate rule from how long a debt can stay on your credit report. Under 15 U.S. Code 1681c, a credit reporting time limit runs on its own schedule. Civil judgments generally drop off a report after more than seven years from the date they were entered, or when the statute of limitations governing the judgment expires, whichever period is longer. That means a debt can become time barred for lawsuit purposes while still showing on your credit report, or it can disappear from your report while the underlying debt technically remains collectible outside of a lawsuit. Do not assume that an old account missing from your report means the statute of limitations has expired, and do not assume an expired statute of limitations means the account is gone from your file.
What a debt collector can and cannot do
Federal Regulation F, found at 12 CFR 1006.26, bars a debt collector from bringing a lawsuit, or threatening to bring one, to collect a debt once its statute of limitations has expired. A collector can still contact you and ask you to pay a time barred debt, and it can still report the debt to a credit bureau if it is otherwise allowed to do so, but it cannot sue you or threaten a lawsuit over it. If a collector tells you it plans to sue, or implies it will sue, over a debt you believe is time barred, that statement may not be accurate. Keep records of any letters or calls, including dates, so you can compare them against when the debt is supposed to have started running toward its deadline.
Steps if you are contacted about an old debt
Start by figuring out the type of debt and when you last made a payment or missed one, since that date usually starts the clock. Do not assume you know the deadline that covers where you live, since the answer depends on your state and the type of debt. Be careful before you make any payment, even a small one, or before you agree to a new payment plan on an old debt, since either action can sometimes restart the clock in some states. If you are unsure whether a debt is still within its window, or if a collector has already threatened legal action, consider contacting a legal aid organization before you respond. Legal aid organizations and nonprofit credit counseling agencies can help you sort through your options, and the request form on this site tells you what kind of credit check happens before you send it if you decide to look at loan options instead.
Key facts
- Credit report civil judgmentA credit reporting time limit is separate from a state debt statute of limitations; civil judgments generally drop off a report after more than seven years from entry or when the governing statute of limitations expires, whichever is longer.[1]
- Debt collector false representationRegulation F bars a debt collector from bringing or threatening to bring a lawsuit to collect a time-barred debt, meaning a debt whose statute of limitations has expired.[2]
- Time barred debtA debt does not generally expire until it is paid, but many states set a statute of limitations on how long creditors or debt collectors can file a lawsuit to collect it, most often between three and six years.[3]
Common questions
Can a debt collector still call me after the statute of limitations passes
Yes. The statute of limitations only limits a lawsuit. Under Regulation F, 12 CFR 1006.26, a collector cannot sue or threaten to sue over a time barred debt, but it can still contact you to ask for payment unless you tell it to stop.
Does paying a small amount restart the clock on an old debt
In many states, making a payment or agreeing to pay can restart the statute of limitations period, so the debt becomes newly enforceable in court from that later date. Get the specific rule for your state and the type of debt before you send any money on an old account.
Is a time barred debt the same as a debt that is gone from my credit report
No. Credit reporting time limits and lawsuit deadlines run separately. Under 15 U.S. Code 1681c, a civil judgment generally drops off your report after more than seven years from entry or when its statute of limitations expires, whichever is longer, which does not always line up with when a debt becomes time barred for a lawsuit.
What should I do if I am sued over an old debt
Respond to the lawsuit by the deadline on the court papers, even if you believe the debt is time barred, since an expired statute of limitations is a defense you generally have to raise yourself in court. Legal aid can help you figure out whether that defense is available in your situation.
Sources
- Cornell Law School Legal Information Institute. 15 U.S. Code 1681c - Requirements relating to information contained in consumer reports.
- Consumer Financial Protection Bureau. 12 CFR 1006.26 - Collection of time-barred debts.
- Consumer Financial Protection Bureau. Can debt collectors collect a debt that's several years old?.