What Is the Statute of Limitations on Debt?

The statute of limitations on debt sets a deadline for creditors to file a lawsuit to collect money you owe. Once the deadline passes, the debt becomes "time-barred."

Time limits by debt type (examples):

Credit card debt (open accounts) — Typically 3-6 years.

Written contracts — Typically 4-6 years.

Promissory notes — Typically 5-6 years.

Oral agreements — Typically 2-4 years.

State variation. The statute of limitations depends on the state and the type of debt. For example, credit card debt has a 3-year limit in some states and a 10-year limit in others.

When the clock starts. The limitations period typically begins on the date of the last payment or the date of the last activity on the account (default date).

Resetting the clock. Be careful — certain actions can restart the statute of limitations:

Making a payment (even a small one)

Making a written promise to pay

Acknowledging the debt in writing

In some states, simply acknowledging the debt verbally

What "time-barred" means:

The creditor can no longer sue you.

The debt still exists — you technically still owe it.

The creditor may still try to collect (calls, letters).

The debt may still appear on your credit report (for up to 7 years from the date of delinquency).

What to do. Know your state's statute of limitations. If sued for time-barred debt, you must raise the statute of limitations as a defense — it is not applied automatically.

This is legal information, not legal advice.