What Is the Statute of Limitations on Debt?

The statute of limitations (SOL) on debt is a law that limits how long a creditor or debt collector can sue you to collect an unpaid debt. Every state sets its own time limits, and they vary depending on the type of debt — credit cards, medical bills, auto loans, written contracts, and more.

Once the statute of limitations expires, the debt becomes "time-barred." This doesn't mean the debt disappears or that collectors can't contact you about it. It means they can no longer use the court system to force you to pay.

The SOL matters because it directly affects whether a debt collector can win a lawsuit against you. If you are sued on a time-barred debt, you can raise the expired statute of limitations as an affirmative defense. If the judge agrees the SOL has passed, the case should be dismissed.

However — and this is critical — you must actually show up in court and raise this defense. If you ignore the lawsuit, the court can enter a default judgment against you even if the debt is time-barred. A default judgment gives the collector the power to garnish wages, freeze bank accounts, and place liens on your property.

The SOL clock typically starts on the date of "last activity" on the account. In most states, this is the date of your last payment. In some states, it's the date the debt was first reported as delinquent or the date of the last charge.

Be careful: making a payment, acknowledging the debt in writing, or even making a partial payment can restart the clock in some states. This is one of the most common traps consumers fall into when dealing with old debts.

Statutes of limitations range from as short as 3 years (in states like Alabama for oral contracts) to as long as 15 years (in some states for written contracts). Most states fall in the 4-6 year range for common consumer debts.

For example, Wisconsin has a uniform 6-year statute of limitations on most debt types under Wis. Stat. § 893.43. This applies to credit cards, medical debt, auto loans, and written contracts alike.

Use our free SOL Calculator to check the specific statute of limitations for your debt type and state.

These are two different things. The statute of limitations governs lawsuits. Credit reporting is governed by the Fair Credit Reporting Act (FCRA), which generally allows negative items to appear on your credit report for 7 years from the date of first delinquency.

A debt can be time-barred (can't be sued for) but still appear on your credit report. Conversely, a debt can fall off your credit report but still be within the statute of limitations.

1. Don't make any payments or acknowledge the debt until you know whether the SOL has expired. A payment can restart the clock.

2. Request debt validation in writing within 30 days of first contact. This is your right under the FDCPA.

3. Check the statute of limitations for your state and debt type using our SOL Calculator.

4. If the debt is time-barred, you can send a cease-and-desist letter or simply raise the SOL defense if sued.

5. If the debt is within the SOL, consider your options carefully: negotiation, payment plan, or consulting with a consumer rights attorney.