What It Means
A statute of limitations on debt is the period, set by state law, during which a creditor or debt collectorDebt collectorA person or company that collects debts owed to someone else, such as a collection agency, debt buyer or collection lawyer, limited by the FDCPA. See more can take you to court to collect. The CFPB says most states set it between 3 and 6 years, some longer, and the length can differ by the type of debt. Once it runs out, the debt is called time-barred, and under Regulation F a debt collector must not sue you or threaten to sue over it. In some states, a partial payment or admitting you owe the debt can restart the period.
Try It: Check Whether an Old Debt May Be Time-Barred
Enter your state's limit for this kind of debt and how long it's been. The 4-year limit is an example; look up your own state's.
Still within the limit in this example, so a collector could sue.
Past the limit in this example, so the debt may be time-barred, and a debt collector must not sue or threaten to.
In some states, a partial payment or written acknowledgment can restart the clock. Check your state's rule before you pay.
How People Say It
- "That debt is past the statute of limitations, isn't it?"
- "The collector wants me to pay a card from ten years ago."
- "Don't send them anything until you know if it's time-barred."
The Breakdown
What the rule says. Each state sets its own statute of limitations for debtsLiabilitiesDebts and other money you owe, such as a mortgage, a car loan or a credit card balance. Your assets minus your liabilities is your net worth. See more, and the CFPB says most fall between 3 and 6 years. When it runs out, the debt is time-barred. Regulation F, the CFPB's debt collection rule at 12 CFR 1006.26, says a debt collector must not bring or threaten to bring a lawsuit to collect a time-barred debt.
Who it applies to. The time limit covers lawsuits by creditors and collectors under your state's law. The ban on suing over time-barred debt applies to debt collectors covered by the Fair Debt Collection Practices Act and Regulation F.
Documents needed
- Your records of the last payment you made on the account and its date.
- Any collection letters, including the collector's validation noticeDebt validation letterEither the notice a debt collector must send listing the debt and your rights, or the letter you send back disputing it or asking for proof. See more.
- Your state's statute of limitations for that type of debt, from your state attorney general, a court self-help site or a lawyer.
Official source. The CFPB's answer "Can debt collectors collect a debt that's several years old?" and Regulation F, 12 CFR 1006.26.
| Clock | Set by | What it controls |
|---|---|---|
| Statute of limitations | State law | How long a collector can sue |
| Credit reporting limit | Federal credit reporting rules | How long negative items can show, generally up to 7 years (CFPB) |
Good to Know
The two clocks in the table run separately, so a debt can be off your credit reportCredit reportA record of how you've borrowed and repaid, kept by credit bureaus and sold to lenders, landlords, insurers and others who decide whether to deal with you. See more and still within the limit for a lawsuit, or time-barred and still on your report. According to the CFPB, a partial payment, or acknowledging that you owe an old debt, may restart the limitations period in some states, so find out where you stand before paying anything on an old account. If you're sued over any debt, respond by the court's deadline and talk to a lawyer or a legal aid office.
FAQ
How long is the statute of limitations on debt?
It depends on your state and the type of debt. The CFPB says most states set it between 3 and 6 years, and some are longer.
Can a debt collector sue me for a time-barred debt?
No. Regulation F says a debt collector must not sue or threaten to sue over a time-barred debt.
Does making a small payment restart the statute of limitations?
It can. The CFPB says that in some states a partial payment, or acknowledging you owe the debt, restarts the period. Check your state's rule before you pay.
Do It in Buhata
Reminders
Set a Reminder in Buhata to look up your state's limit, and gather your payment records, before you reply to a collector about an old debt.
Open BuhataRelated Terms and Categories
- Debt collector
A person or company that collects debts owed to someone else, such as a collection agency, debt buyer or collection lawyer, limited by the FDCPA.
- Debt validation letter
Either the notice a debt collector must send listing the debt and your rights, or the letter you send back disputing it or asking for proof.
- Charge-off
When a lender writes an unpaid account off as a loss and closes it; you still owe the money, and the mark can stay on your credit report for up to seven years.
- Credit report
A record of how you've borrowed and repaid, kept by credit bureaus and sold to lenders, landlords, insurers and others who decide whether to deal with you.
- Loan default
Failing to repay a loan as the contract requires, usually after missed payments, which lets the lender use stronger ways to collect.
- Debt settlement
Paying a creditor a lump sum that's less than the full balance, often through a for-profit company, in exchange for the creditor treating the debt as resolved.
Sources
Consumer Financial Protection Bureau, "Can debt collectors collect a debt that's several years old?"; Consumer Financial Protection Bureau, Regulation F, "ยง 1006.26 Collection of time-barred debts"; Consumer Financial Protection Bureau, "How long does information stay on my credit report?"; Federal Trade Commission, "Debt Collection FAQs"
- www.consumerfinance.gov/ask-cfpb/can-debt-collectors-collect-a-debt-thats-several-years-old-en-1423
- www.consumerfinance.gov/rules-policy/regulations/1006/26
- www.consumerfinance.gov/ask-cfpb/how-long-does-information-stay-on-my-credit-report-en-323
- consumer.ftc.gov/articles/debt-collection-faqs
Last updated .