Statute of Limitations on Debt: What Happens When a Debt Gets Too Old to Sue

Short answer: The statute of limitations on debt is the time limit for suing you to collect a debt. The CFPB says most states set it between three and six years, though some are longer. Once it runs out, the debt is "time-barred": a debt collector can't sue you or threaten to sue you over it. You may still owe the money, though, and in some states a small payment can restart the clock, so check your state's rules before you pay anything on an old debt.

What Is the Statute of Limitations on Debt?

A debt doesn't usually expire. The CFPB explains that a debt generally doesn't disappear until it's paid, but in many states there's a time limit on how long creditors or debt collectors can use legal action to collect it. That time limit is the statute of limitations.

When the period runs out, the debt becomes time-barred. The FTC puts it simply: debt collectors have a limited amount of time to sue you to collect on a debt, and once that time has passed, the debt is time-barred.

In this guide, "zombie debt" means an old, time-barred debt that comes back into collection years after you last heard about it. The term government guides use is time-barred debt.

How Long Is the Statute of Limitations on Debt?

There's no single national number. According to the CFPB, most states or jurisdictions have statutes of limitations between three and six years for debts, and some may be longer. How long yours lasts can depend on:

• The type of debt.
• The state where you live.
• The state law named in your credit agreement. Some contracts say which state's law applies.

Some debts have no limit at all. The CFPB notes that federal student loans have no statute of limitations.

As one example, the Texas State Law Library says Texas law gives a creditor 4 years to bring a lawsuit for unpaid debt. Other states set different periods, so don't assume another state's number applies to you.

When Does the Clock Start?

That also depends on your state. The CFPB says some states start counting from the date you missed a required payment, while others count from your most recent payment, even if you made it during collection. The FTC says the period usually starts when you miss a payment on a debt. The Texas State Law Library adds that Texas's statute doesn't specify a start date, so your contract may set it, and otherwise the date of your last payment may start the clock.

What Can a Debt Collector Do After the Statute of Limitations Runs Out?

Here's how the rules line up, according to the CFPB and the FTC:

Can a debt collector...	On a time-barred debt
Sue you to collect?	No. The FTC says it's against the law for a debt collector to sue you for not paying a time-barred debt.
Threaten to sue you?	No. The CFPB says collectors can't sue or threaten to sue you once the statute of limitations has passed.
Call or write to ask you to pay?	It depends on your state. The FTC says some states make it illegal and others allow it. The CFPB says that where it's allowed, collectors must follow the law.
Report the debt to credit bureaus?	The credit reporting period is separate. The FTC says negative information like past-due debts can generally stay on your credit report for seven years.

These limits are in federal rules. The Texas State Law Library notes that the CFPB's Regulation F prevents debt collectors from suing or threatening to sue over time-barred debts, and that it can cover original creditors if they're collecting under a different name.

A time-barred debt isn't erased. The Texas State Law Library explains that you still owe it, but creditors and debt buyers lose their most powerful way of collecting: a lawsuit. A collector may still take other actions to collect.

Can a Payment Restart the Statute of Limitations?

In some states, yes, and this is the biggest trap with old debts.

The FTC says that in some states, if you make a payment or even acknowledge in writing that you owe the debt, the clock resets. It adds that a partial payment or even a promise to pay can "revive" a debt in some states, and the collector could then sue you for the full amount, which may include extra interest and fees. The CFPB also says a partial payment or acknowledging an old debt may restart the time period.

Not every state works this way. The Texas State Law Library says that under a 2019 Texas law, a payment on the debt, a reaffirmation of the debt or any other activity no longer revives the statute of limitations on debts held by debt buyers. It also says debt buyers in Texas must give written notice if they act to collect after the period has passed.

Because the rules differ, find out your state's rule before you pay anything, agree to a payment plan or sign anything that says you owe the money. If you decide to settle, the FTC says to get a signed letter stating that the payment settles the debt before you pay.

How Do You Find Out If Your Debt Is Time-Barred?

1. Ask the collector for the date of your last payment. The FTC suggests asking what the collector's records show about your last payment.
2. Ask for validation information. The FTC says a debt collector must give you validation information, including the creditor's name, the amount owed and your dispute rights, in its first communication or within five days after. Our guide to the debt validation letter explains how to request it.
3. Dispute it within 30 days if something looks wrong. The FTC says that if you send a dispute letter within 30 days, the collector must stop collecting until it sends you verification of the debt. If you don't dispute it within 30 days, the collector will assume the debt is legitimate.
4. Look up your state's statute of limitations. The FTC suggests researching it online, or checking with your state attorney general or a legal aid office.
5. Fix credit report errors. If an old debt shows up on your credit report with wrong details, see how to dispute credit report errors.

What Should You Do If You're Sued on an Old Debt?

Don't ignore the lawsuit. The FTC is clear on this. The CFPB explains why: a lawsuit filed after the statute of limitations expires violates the Fair Debt Collection Practices Act, but a court may still award a judgment against you if you don't show up and raise the statute of limitations as a defense. Ordinarily, it's up to the person being sued to point out that the time limit has expired.

What to do, based on FTC and CFPB guidance:

• Respond to the lawsuit and show up on the day of your case.
• Tell the court the debt is time-barred. Bring the collector's information about the debt or anything that shows the date of your last payment.
• Consider talking to a lawyer. The FTC suggests it.
• Know you may have a claim. The CFPB says a lawsuit filed after the statute of limitations expires violates the FDCPA. The FTC says you can sue a collector within one year of when it broke the law, and a judge can award up to $1,000 even without proven damages, plus fees and costs.

You can also tell a collector to stop contacting you. The FTC suggests sending a letter by mail, ideally by certified mail with a return receipt.

Should You Pay a Time-Barred Debt?

That's your call, and there's no single right answer. You may still owe the money. Before you pay, weigh the risks the FTC describes: in some states a payment can restart the clock and open you up to a lawsuit for the full balance, and paying an old debt may not remove it from your credit history.

If you decide to pay or settle, get the terms in writing first. Our guide on how to negotiate with creditors covers what to ask for. If old collections are on your credit report, our guide on removing collections from your credit report explains what can and can't be removed.

The Bottom Line

The statute of limitations on debt limits how long a collector can sue you. It doesn't erase what you owe. Once a debt is time-barred, a collector can't sue or threaten to sue, but in many states it can still ask you to pay, and in some states a payment or written promise can restart the clock. Before you pay anything on an old debt, confirm the date of your last payment, ask for validation and look up your state's rule. If you're sued, show up and raise the defense. For more help, browse our credit and debt guides.

This article is general information, not legal advice. Debt collection laws vary by state.

Frequently asked questions

What is the statute of limitations on debt?

It's the period set by law for bringing a lawsuit to collect a debt. The CFPB says most states have statutes of limitations between three and six years for debts, though some may be longer. It depends on the type of debt, the state where you live and sometimes the state law named in your credit agreement.

What is zombie debt?

In this guide, "zombie debt" means an old debt that comes back into collection years later after the statute of limitations has run out. Government guides call a debt that's too old to sue on a "time-barred" debt. A collector can't sue or threaten to sue over it, but in many states it can still contact you and ask you to pay.

Can you be sued for a debt after 7 years?

Generally not by a debt collector, if your state's statute of limitations has run out, and the CFPB says most states set limits between three and six years. But a court may still enter a judgment against you if you don't show up and raise the statute of limitations as a defense. Federal student loans have no statute of limitations.

Does paying a little on an old debt restart the clock?

In some states, yes. The FTC says that in some states, making a payment or even acknowledging in writing that you owe the debt resets the clock, and the collector could then sue you for the full amount plus interest and fees. In Texas, by contrast, a 2019 law says a payment on a debt held by a debt buyer can't revive it.

Does a time-barred debt come off my credit report?

Not automatically. The two clocks are separate. The FTC says negative information like past-due debts can generally stay on your credit report for seven years, and the Texas State Law Library notes that negative information may still appear after Texas's four-year limit for lawsuits.

Sources

1. CFPB: Can debt collectors collect a debt that's several years old?
2. FTC: Debt Collection FAQs
3. Texas State Law Library: Time-Barred Debts
4. Texas State Law Library: What is the statute of limitations on debt?

This guide is general information, not personal advice. Your situation may differ, so consider talking with a qualified professional, such as a fiduciary financial adviser, CPA or licensed agent, before making a decision.