Statutes of Limitation on Debt Collection

How does a statute of limitations on debt actually work?

A statute of limitations is a deadline for filing a lawsuit. It does not erase what you owe. It limits the window in which a creditor or debt buyer can ask a court to enter a judgment against you, and a judgment is what unlocks the enforcement tools people actually fear — wage garnishment, which federal law defines as any legal or equitable procedure through which earnings are withheld for payment of a debt (15 U.S.C. § 1672(c)), plus bank levies and liens.

The clock generally starts running from a defined event under state law, most often the point of default or the last activity on the account. Because the deadline and the trigger are both state-law questions, two people with identical credit card balances in different states can have very different answers.

After the deadline passes, the debt is commonly described as time-barred. The obligation still exists on paper. What has changed is the creditor's practical ability to enforce it through the courts.

What changes the answer for your particular debt?

Several variables move the outcome, and most of them are decided by the law of your state rather than by anything federal.

The type of debt matters. States commonly set different periods for written contracts, oral agreements, open-ended credit accounts, and promissory notes, and separate periods exist for enforcing particular liens — Alabama, for example, gives six months to enforce one category of statutory lien (Ala. Code § 35-11-221). The starting event matters too: default date, last payment, or last charge can each be the trigger depending on the state.

Whether you moved matters, because a different state's law may apply. Whether the account was sold to a debt buyer matters for who is suing, though it usually does not reset the underlying deadline. Maryland's statutory definitions capture how these actors are distinguished — creditor, collector, debt buyer, and charge-off balance each carry a defined meaning (Md. Code, Cts. & Jud. Proc. § 5-1201).

Because of that variance, treat any general number you read online as a prompt to check your own state, not an answer.

Does making a payment restart the clock?

This is the single most consequential question on this page, and the answer depends entirely on your state.

In many states, a partial payment or a written acknowledgment of an old debt can restart or extend the limitations period, which is why a collector may push hard for a small "good faith" payment on a very old account. In other states, the legislature has closed that door. Maryland provides a clear example: by statute, any payment toward, written or oral affirmation of, or any other activity on the debt occurring after the limitations period has expired does not revive or extend it (Md. Code, Cts. & Jud. Proc. § 5-1202(b)(1)). That same Maryland statute also bars a creditor or collector from initiating a consumer debt collection action after the applicable period has expired (§ 5-1202(a)).

We do not publish a verified revival rule for every state on this page. Before you pay anything on a debt you believe is old, find out which rule your state follows.

• A small payment can be legally significant far out of proportion to its size.
• A written promise to pay is treated differently from a verbal one in many states.
• A new written agreement or payment plan entered into before expiration can be its own separate contract with its own deadline (Md. Code, Cts. & Jud. Proc. § 5-1202(b)(2)).

What does federal law say about old debt?

Federal law does not set the deadline. It regulates conduct around the debt and controls what happens once a bankruptcy case is filed.

Inside bankruptcy, the limitations question is decided by the same non-bankruptcy law. A filed claim is deemed allowed unless a party in interest objects, and if an objection is made the court disallows the claim to the extent it is unenforceable against the debtor and property of the debtor under any agreement or applicable law, for a reason other than that the claim is contingent or unmatured (11 U.S.C. § 502(b)(1)). A claim barred by a state statute of limitations is generally analyzed under that provision.

Filing does not run out a creditor's clock, either. Where non-bankruptcy law fixes a period for commencing or continuing a civil action on a claim against the debtor and that period has not expired at filing, the period does not expire until the later of its own end or 30 days after notice that the stay has terminated or expired (11 U.S.C. § 108(c)).

Where do state and local rules differ most?

Almost everywhere that matters. Three things vary state by state, and this page deliberately does not assign numbers to any of them.

First, the length of the period, which commonly differs by the category of debt. Second, the event that starts it. Third, the revival rule — whether a payment or acknowledgment can restart an expired period, as Maryland has legislated against (Md. Code, Cts. & Jud. Proc. § 5-1202).

States also legislate around the edges of debt in ways that surprise people. Alabama's unclaimed property statute, for instance, provides that the expiration of a limitations period on an owner's right to recover property does not prevent that property from being presumed abandoned or affect the duty to report it to the Treasurer (Ala. Code § 35-12-88(a)).

Our per-state pages carry the verified figures where we have them. If you need the number for your state, start there rather than with a general article.

What does this look like in practice with zombie debt?

"Zombie debt" is the informal name for a very old account that resurfaces, usually after being sold at a steep discount to a debt buyer. The account may be a decade old and may already have fallen off your credit report.

A typical sequence looks like this. A collector calls or writes about a balance you do not recognize. You are offered a settlement, or an installment arrangement that starts with one small payment. In a state that allows revival, that payment can matter enormously. In Maryland it would not, because activity after expiration does not revive the period (Md. Code, Cts. & Jud. Proc. § 5-1202(b)(1)).

Some collectors also file suit on old accounts and rely on the fact that most consumers never appear. A limitations defense generally has to be raised — it is not usually applied by the court on its own. Ignoring a summons is how a time-barred debt becomes a live judgment.

• Do not confirm the debt is yours before you know how old it is and which state's law applies.
• Do not agree to a payment plan on the phone under time pressure.
• Never ignore a court summons, even on a debt you believe is too old to sue on.

What documents and information should you gather?

Before anyone can tell you whether a debt is time-barred, you need a small set of facts. Most of them come from your own records rather than from the collector.

The date of your last payment and the date of default are the critical ones, because state law usually keys the clock to one of them. Original account statements, the name of the original creditor, and any assignment or sale documents establish the chain of ownership. Written collection notices matter as evidence of what you were told.

Your credit report helps with dates, though it is not a legal record of the limitations period. Federal law generally limits reporting of accounts placed for collection or charged to profit and loss that antedate the report by more than seven years, and of civil suits and judgments beyond seven years or until the governing statute of limitations has expired, whichever is longer (15 U.S.C. § 1681c(a)(2), (4)). If a reported item looks wrong, you can dispute it and the agency must generally reinvestigate within the period the statute sets (15 U.S.C. § 1681i(a)(1)(A)).

What should you ask a bankruptcy lawyer?

If a collector is threatening suit, or you are weighing bankruptcy against simply waiting a debt out, a short consultation with a lawyer licensed in your state is worth more than any general article, including this one.

Useful questions to bring: what is the limitations period for this specific type of debt in my state, and what event starts it? Does a payment or written acknowledgment revive an expired debt here? Have I been sued, and if so, has the deadline to respond already run? If I file, would this claim be objectionable as unenforceable under 11 U.S.C. § 502(b)(1)? How does the extension in 11 U.S.C. § 108(c) affect creditors who are close to their deadline?

Also ask about cost. Filing fees are set nationally — the Chapter 7 filing fee is $245 plus a $78 administrative fee and a $15 trustee surcharge, and the Chapter 13 filing fee is $235 plus a $78 administrative fee — while attorney fees vary locally.

Frequently asked questions

Does a debt disappear when the statute of limitations runs out?

No. The obligation generally still exists; what expires is the creditor's window to obtain a court judgment. A collector may still contact you about a time-barred debt in many states, though some states restrict suing on one — Maryland bars initiating a consumer debt collection action after the applicable period has expired (Md. Code, Cts. & Jud. Proc. § 5-1202(a)).

Is the statute of limitations the same as how long a debt stays on my credit report?

No, they are separate timelines that often get confused. Credit reporting limits come from federal law, which generally bars reporting collection accounts that antedate the report by more than seven years (15 U.S.C. § 1681c(a)(4)). The limitations period for suing comes from state law and can be shorter or longer than the reporting window.

Can I still be sued on a time-barred debt?

A suit can be filed, and it happens. The limitations period is generally a defense that has to be raised in response to the lawsuit rather than something a court applies automatically. That is why ignoring a summons is risky: a default judgment on an old debt can lead to garnishment, which federal law defines as a procedure requiring earnings to be withheld for payment of a debt (15 U.S.C. § 1672(c)).

Does filing bankruptcy give creditors more time to sue me?

It can extend a period that had not yet expired. Under 11 U.S.C. § 108(c), where non-bankruptcy law fixes a period for commencing or continuing a civil action on a claim against the debtor and that period has not expired at filing, it does not expire until the later of its own end or 30 days after notice that the stay has terminated or expired.

Can an old debt be challenged in a bankruptcy case?

Yes. A filed claim is deemed allowed unless a party in interest objects (11 U.S.C. § 502(a)). If an objection is made, the court disallows the claim to the extent it is unenforceable against the debtor and property of the debtor under any agreement or applicable law, other than because it is contingent or unmatured (11 U.S.C. § 502(b)(1)).

Should I list an old debt in my bankruptcy schedules even if I think it is time-barred?

Talk to a lawyer, but note that debts not listed or scheduled in time to permit filing can be excepted from discharge under 11 U.S.C. § 523(a)(3). Bankruptcy courts also require statements listing assets, income, liabilities, and the names and addresses of all creditors and how much they are owed (Bankr. D. Md. official page — Legal Overview).

Does a co-signer's debt have its own clock?

The limitations period runs against each obligor under state law, and a co-signer's exposure is separate from yours. In a Chapter 13 case, a codebtor stay generally bars a creditor from acting to collect a consumer debt from another individual liable on it with you, subject to statutory exceptions and relief (11 U.S.C. § 1301).

What if the collector cannot prove the debt is mine?

Proof of ownership is a separate issue from timing, and both can matter. Debts sold to debt buyers change hands, sometimes repeatedly, and state law defines who counts as a creditor, collector, or debt buyer (Md. Code, Cts. & Jud. Proc. § 5-1201). Gather your own statements and any assignment documents before responding.

Sources

• 11 U.S.C. § 502 — Allowance of claims or interests · official source
• 11 U.S.C. § 108 — Extension of time
• Md. Code, Courts and Judicial Proceedings § 5-1202
• Md. Code, Courts and Judicial Proceedings § 5-1201
• 15 U.S.C. § 1681c — Requirements relating to information contained in consumer reports
• 15 U.S.C. § 1681i — Procedure in case of disputed accuracy
• 15 U.S.C. § 1672 — Definitions
• 11 U.S.C. § 523 — Exceptions to discharge · official source
• 11 U.S.C. § 1301 — Stay of action against codebtor · official source
• Ala. Code § 35-11-221
• Ala. Code § 35-12-88
• Bankr. D. Md. official page — Legal Overview
• 28 U.S.C. § 1930(a)(1)(A), (f)(1) · official source
• 28 U.S.C. § 1930(a)(1)(B) · official source
• Bankruptcy Court Miscellaneous Fee Schedule, Item 8
• Bankruptcy Court Miscellaneous Fee Schedule, Item 9

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