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The statute of limitations on debt collection varies by state. Here’s a breakdown of how long it lasts in each of the 50 states.
The federal Fair Debt Collection Practices Act (FDCPA) prohibits a debt collector from bringing or threatening to bring a legal action against a consumer to collect a time-barred debt. (12 C.F.R. § 1006.26(b)).
If you're unsure whether the debt has expired under your state's statute of limitations, and you ask the debt collector if that debt is time-barred, the Fair Debt Collection Practices Act (FDCPA) requires that the collector tell the truth.
Each state has its own statute of limitations on debt, and they vary depending on the type of debt you have. Usually, it is between three and six years, but it can be as high as 10 or 15 years in some states.
In many states, statues of limitations are in place to prevent creditors and debt collectors from using legal action to collect on an older debt. Some debts, though, such as federal student loans don’t have a statute of limitations.
It's important to understand what the statute of limitations is in your state and for various types of debts, how you might unwittingly restart the time period to sue, and what you can do if a collector or creditor tries to sue you after the statute has run.
The maximum statute nationwide is 15 years. However, in most states, the period for credit card contracts and loans is limited to 4-6 years. The statute of limitations on collection. Every state has different rules on the number of years that a debt collector can pursue payment through the courts.
This time period is called the “statute of limitations,” and it usually starts when you miss a payment on a debt. After the statute of limitations runs out, your unpaid debt is considered “time-barred.”
Every state has statutes of limitations, designated periods of time in which someone can legally be sued for a debt. In most states, the statute of limitations begins on the date of the last activity on the debt (last payment). Statutes of limitations are always based on your state of residence.
What Is a Statute of Limitations on Debt? The statute of limitations in the case of debt refers to how long the creditor or collector has to take legal action against you. The creditor can’t file a valid lawsuit outside of the statute of limitations.