Statute of Limitations on Debt: Everything You Need to Know
The statute of limitations prevents creditors from suing you over old debts, typically ranging from 2 to 15 years depending on your state and debt type. Always respond to lawsuits even on time-barred debts by listing the expired statute as an affirmative defense in your Answer. Avoid restarting the clock by refusing to make payments, acknowledge debts, or sign documents without legal advice.
Answer Your LawsuitA statute of limitations sets the maximum time creditors can sue you for debt. After that window closes, they lose their legal right to take you to court.
The law protects you from unfair prosecution. After years pass, evidence disappears and memories fade. Courts recognize that old debts shouldn’t haunt you forever.
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Don't let collectors win by default. Our partner Solo helps you draft a proper Answer document citing statute of limitations as your defense. File before your deadline expires.
Start Your AnswerThe statute of limitations on debt varies by state and debt type. You need to know when the clock starts and what might restart it.
How the Statute of Limitations Works for Different Debt Types
The time limit ranges from 2 to 15 years. Your state and debt category determine the exact period.
Written Agreements
Written agreements are printed contracts signed by both parties. These documents are legally binding and enforceable in court.
When someone breaks a written contract, the other party can sue. The window typically runs 3 to 15 years. Delaware gives plaintiffs 3 years. Ohio extends that window to 15 years.
Open-Ended Contracts
Open-ended contracts don’t specify an end date. They include termination terms for fraud or contract violations instead.
Alabama allows 3 years to file claims on these contracts. California extends the period to 4 years. Each state sets its own rules.
Promissory Notes
Promissory notes are formal promises to pay specific amounts under set conditions. The statute varies widely between neighboring states.
California gives creditors just 2 years to sue. Oregon allows 6 years for the same debt type.
Oral Agreements
Oral contracts are spoken agreements without written documentation. These prove difficult in court but remain legally enforceable.
Texas treats oral and written contracts equally at 4 years. Most states allow 3 to 6 years. Louisiana, Ohio, Rhode Island, and Oregon permit up to 10 years.
When Does the Clock Start Ticking?
The statute of limitations clock starts when you miss a scheduled payment. Some states begin counting from your last payment instead.
Understanding your state’s rule helps you determine if your debt is time-barred. Our partner Solo can help you identify the exact statute for your situation.
What Restarts the Statute of Limitations Clock
You can accidentally restart the clock and give creditors more time to sue. Avoid these three actions on old debts.
Making Any Payment
A single payment restarts the clock in most states. Even partial payments trigger this reset.
Debt collectors know this tactic well. They call near expiration dates and ask for small payments. You think they’ll forgive the rest. Instead, you’ve just given them years to sue you again.
Agreeing You Owe the Debt
Acknowledging an old debt restarts the clock immediately. Never admit you owe money without consulting an attorney first.
Don’t sign anything a collector sends you. Written acknowledgment gives them fresh grounds to pursue legal action.
Making a Charge to the Account
Using a credit card connected to the debt account restarts the statute. One charge resets years of protection.
What to Do If Sued Over Time-Barred Debt
Creditors sometimes sue over expired debts hoping you won’t respond. Your actions in the next few weeks determine everything.
Never ignore a Summons and Complaint. Courts don’t care if the debt is time-barred unless you tell them.
Understanding Your Court Documents
A Summons orders you to appear in court. The Complaint lists allegations against you and identifies you as the defendant.
You must file an Answer document responding to each allegation. Our partner Solo helps you draft this critical document correctly.
How to Structure Your Answer
Your Answer document should address each claim made against you. You have four response options:
- Admit you owe the full debt amount
- Deny you owe any debt
- Admit you owe only part of the claimed amount
- State you have no knowledge of the debt
Most attorneys recommend denying allegations when possible. Denial shifts the burden of proof back to the creditor.
The plaintiff must now prove their case with documentation. Many collectors lack the original contracts and payment records needed to win.
Using Affirmative Defenses in Your Answer
An affirmative defense presents facts that defeat the plaintiff’s claims. Even if their allegations are true, your defense can win the case.
The Statute of Limitations as Your Defense
Debt collection laws allow you to cite expired statutes as an affirmative defense. Include this in your Answer document when applicable.
List “Statute of Limitations” as an affirmative defense. State clearly that the debt falls outside the legal time limit.
Mail your Answer to the court that issued the Summons. Send it before your response deadline expires.
Stopping Contact About Time-Barred Debts
Send collectors a written letter once you confirm the debt is expired. Request they stop all contact unless terminating collection efforts.
Keep your letter brief and factual. Avoid making promises or revealing unnecessary information about your finances.
The Fair Debt Collection Practices Act protects your right to stop contact. Collectors who ignore your written request violate federal law.
Mention the FDCPA in your letter. Warn that continued contact after your request constitutes a violation.
Critical Mistakes That Cost You Protection
Understanding statutes of limitations protects you from illegal collection attempts. Avoid these common errors.
Ignoring Court Summons
Ignoring a lawsuit guarantees you lose. Courts grant default judgments when defendants don’t respond.
A default judgment gives collectors legal authority to garnish wages and freeze accounts. They can pursue collection even on time-barred debts.
Making Small Payments on Old Debts
Collectors use psychological tactics to restart the clock. They promise to “work with you” if you just pay something today.
That $10 payment just gave them 3 to 10 more years to sue. Don’t pay anything unless you’re ready to settle completely.
Confirming Debt Details Over the Phone
Collectors record calls to document your acknowledgment. Saying “yes, I remember that debt” can restart the statute.
Tell collectors to send information in writing. Never discuss debt details until you’ve verified the statute hasn’t expired.
Know Your Rights Under Federal Law
The Fair Debt Collection Practices Act gives you powerful protections. Collectors who violate these rules face penalties.
You can request debt validation in writing. Collectors must provide proof they own the debt and the amount is accurate.
They must stop calling you at work if you request it. They cannot contact you before 8 AM or after 9 PM.
Harassment, threats, and false statements are illegal. Document violations and report them to the Consumer Financial Protection Bureau.