The amount of time a person has to pursue legal action in response to a particular incident is the "statute of limitations." In the context of financial obligations, the statute of limitations refers to the period of time a creditor has before filing a lawsuit against you to compel you to make payments on a debt. The judicial system does not maintain a record of the statute of limitations on your debt. On the other hand, you are the one responsible for proving that the obligation is outside the statute of limitations.
Time-barred debts - Debts that have expired
Time-barred debts cannot be collected because the applicable statute of limitations has expired. However, the expiry of the statute of limitations has passed on the obligations that you owe money for does not imply that you are exempt from paying the bill or that it cannot affect your credit rating. It simply indicates that the creditor will not be able to get a judgment against you as long as you appear in court ready with evidence demonstrating that the debt is too old. A personal check that shows the most recent time you made a payment or your records of communication that you've made regarding that debt are also examples of proof that you could provide.The different types of debt
You can place every debt into one of these four categories. You must be aware of the kind of debt you are carrying because the applicable statutes of limitations vary depending on the kind of obligation. If you are unsure about your financial obligations, it is best to consult an attorney.-
Oral agreements
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Written contracts
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Promissory notes
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Open-ended accounts
Each state's statutes of limitations
There is a debt statute of limitations in every state, and these limitations can be different based on the sort of debt you have. In most states, the sentence is between three and six years, but it can be as high as ten or fifteen years in others. Find out your state's debt statute of limitations before you give a response to a collection agency that is trying to collect a debt from you. Suppose the appropriate time restriction for filing a claim has already gone. You are less likely to pay the debt if the time limit for credit reporting has already expired (this is a different date from the statute of limitations). In that case, you may have less incentive to pay off the obligation. As of June 2019, the following is a list of each state's statutes of limitation, expressed in years.
State of the USA |
Oral agreements |
Written contracts |
Promissory notes |
Open-ended accounts |
Alabama |
6 | 6 | 6 | 3 |
Alaska |
3 | 3 | 3 | 3 |
Arizona |
3 | 6 | 6 | 3 |
Arkansas |
3 | 5 | 3 | 3 |
California |
2 | 4 | 4 | 4 |
Colorado |
6 | 6 | 6 | 6 |
Connecticut |
3 | 6 | 6 | 3 |
Delaware |
3 | 3 | 3 | 4 |
Florida |
4 | 5 | 5 | 4 |
Georgia |
4 | 6 | 6 | 6 |
Hawaii |
6 | 6 | 6 | 6 |
Idaho |
4 | 5 | 5 | 5 |
Illinois |
5 | 10 | 10 | 5 |
Indiana |
6 | 6 | 10 | 6 |
Iowa |
5 | 10 | 5 | 5 |
Kansas |
3 | 5 | 5 | 3 |
Kentucky |
5 | 10 | 15 | 5 |
Louisiana |
10 | 10 | 10 | 3 |
Maine |
6 | 6 | 6 | 6 |
Maryland |
3 | 3 | 6 | 3 |
Massachusetts |
6 | 6 | 6 | 6 |
Michigan |
6 | 6 | 6 | 6 |
Minnesota |
6 | 6 | 6 | 6 |
Mississippi |
3 | 3 | 3 | 3 |
Missouri |
5 | 10 | 10 | 5 |
Montana |
5 | 8 | 8 | 5 |
Nebraska |
4 | 5 | 5 | 4 |
Nevada |
4 | 6 | 3 | 4 |
New Hampshire |
3 | 3 | 6 | 3 |
New Jersey |
6 | 6 | 6 | 6 |
New Mexico |
4 | 6 | 6 | 4 |
New York |
6 | 6 | 6 | 6 |
North Carolina |
3 | 3 | 5 | 3 |
North Dakota |
6 | 6 | 6 | 6 |
Ohio |
6 | 8 | 15 | 6 |
Oklahoma |
3 | 5 | 5 | 3 |
Oregon |
6 | 6 | 6 | 6 |
Pennsylvania |
4 | 4 | 4 | 4 |
Rhode Island |
10 | 10 | 10 | 10 |
South Carolina |
3 | 3 | 3 | 3 |
South Dakota |
6 | 6 | 6 | 6 |
Tennessee |
6 | 6 | 6 | 6 |
Texas |
4 | 4 | 4 | 4 |
Utah |
4 | 6 | 6 | 4 |
Vermont |
6 | 6 | 5 | 3 |
Virginia |
3 | 5 | 6 | 3 |
Washington |
3 | 6 | 6 | 3 |
West Virginia |
5 | 10 | 6 | 5 |
Wisconsin |
6 | 6 | 10 | 6 |
Wyoming |
8 | 10 | 10 | 8 |
Frequently Asked Questions (FAQs)
When does the period of time before a debt become uncollectible?
The countdown begins on the day after your last transaction or activity on the account. Activity may consist of accepting liability for the debt, making a payment, arranging a payment, or making a payment arrangement.What can reset the period of time before a debt becomes legally enforceable?
The statute of limitations for your debt might be reactivated if there is new activity on your account. The clock may reset if you add a new charge to the account, arrange a payment, enter into an agreement, or carry out any other activity.Why are there time limits for bringing legal action?
The purpose of statutes of limitations is to impose a time constraint on creditors or debt collectors who wish to pursue legal action to recover a debt owed to them. If the statute of limitations for the debt has passed, the creditor can no longer launch a case against the debtor. This prevents debtors from being subject to liabilities for prior debts for the rest of their lives.