A debt collector calls you about a credit card you stopped paying five years ago. They threaten to sue you. They say you must pay right now. They make it sound like you have no choice.
But here's what they won't tell you. That debt might be too old to sue over. It could be past the statute of limitations. And if it is, you have powerful legal protections they hope you don't know about.
Understanding the statute of limitations on credit card debt can save you thousands of dollars. It can stop harassment from collectors. And it can protect you from lawsuits that have no legal standing.
Let’s learn more about that topic here.
What Is the Statute of Limitations on Debt?
The statute of limitations is a state law that sets a deadline for how long creditors can sue you for unpaid debt. Once this time period expires, the debt becomes time-barred. Collectors lose their most powerful weapon, which is taking you to court.
Think of it like an expiration date. After a certain number of years, creditors can no longer legally force you to pay through a lawsuit. The exact time varies by state, ranging from three to ten years.
According to the Consumer Financial Protection Bureau, most states have statutes of limitations between three and six years for credit card debt. But some states allow much longer periods.
Here's the important part. The statute of limitations doesn't erase your debt. You still technically owe the money. But collectors cannot sue you or threaten to sue you once the time period expires.
How Long Is the Statute of Limitations in Each State?
The statute of limitations varies dramatically depending on where you live. Some neighboring states have completely different time limits.
Thirteen states have a three-year statute of limitations for credit card debt. These include New Hampshire, South Carolina, and Tennessee. If you live in these states, debt collectors lose their right to sue after just three years.
Most states fall in the four to six-year range. California has four years. Texas has four years. Massachusetts has six years. New York has six years.
Only two states have a ten-year statute of limitations. These are Rhode Island and West Virginia. Residents in these states face the longest potential lawsuit window in the country.
The type of debt also matters. Credit card debt is usually classified as open ended accounts or written contracts. Your original credit card agreement determines which category applies. This affects which statute of limitations timeline the court uses.
When Does the Clock Start?
This is where things get tricky. And it's information collectors definitely won't share with you.
The statute of limitations clock typically starts on the date of your last payment. Not the date you opened the account. Not the date you first missed a payment. The date you last made any payment on the account.
Let's say you stopped paying your credit card in January 2020. You live in California, where the statute is four years. The clock started in January 2020. The statute of limitations expired in January 2024. After that date, no one can legally sue you for this debt.
But here's the danger. Making even one small payment can restart the entire clock. If you paid just 10 dollars in March 2023, the clock starts over from March 2023. Now the statute doesn't expire until March 2027.
According to debt collection experts, this clock restart is one of the biggest traps consumers fall into. Collectors know this. They pressure you to make small payments specifically to restart the statute of limitations.
What Collectors Can and Cannot Do After the Statute Expires
Once your debt passes the statute of limitations, collectors have limited options. But they still have some.
They can contact you about the debt. They can send letters. They can call you as long as they follow fair debt collection rules. The statute of limitations doesn't stop collection attempts. It only stops lawsuits.
They cannot sue you. If they do file a lawsuit after the statute expires, that violates the Fair Debt Collection Practices Act. You can use the expired statute as a legal defense. You may even be able to sue the collector for breaking federal law.
They cannot threaten to sue you. Even mentioning a lawsuit for time barred debt is illegal. If a collector says they'll take you to court for old debt, they're violating federal law.
According to Consumer Financial Protection Bureau regulations from 2021, collectors who sue or threaten to sue over time barred debt face serious penalties. They can be forced to pay damages to consumers they harmed.
The debt can still appear on your credit report. Credit bureaus can report unpaid debts for seven years from the date of first delinquency. This is separate from the statute of limitations.
Even if the statute expires after four years, the debt might stay on your credit report for three more years. This can hurt your credit score and make it harder to get loans or rent apartments.
The Zombie Debt Problem
Zombie debt is old debt that collectors try to revive years after it should be dead. These debts are often past the statute of limitations. But collectors buy them for pennies on the dollar and try to collect anyway.
According to industry data, debt collectors often purchase portfolios of old debt for less than five cents per dollar owed. They make money if they can collect even a tiny percentage.
These collectors use aggressive tactics. They count on consumers not knowing their rights. They pressure people to acknowledge the debt or make small payments. This restarts the statute of limitations and brings the zombie debt back to life.
Texas changed its laws in 2019 to fight zombie debt. The state now prohibits debt buyers from restarting the statute of limitations through payments or acknowledgments. Other states haven't adopted similar protections yet.
Related Read: What are Phantom Debts and Are They Chasing You
Common Tricks Collectors Use
Debt collectors have strategies designed to trick you into giving up your statute of limitations protection.
Here are the most common ones.
The Acknowledgment Trap
A collector asks you to confirm the debt is yours. This seems harmless. But in many states, acknowledging you owe the debt can restart the statute of limitations.
Never confirm, admit, or acknowledge old debts over the phone. Ask the collector to send everything in writing. Don't say anything that could be interpreted as accepting responsibility for the debt.
The Small Payment Trick
Collectors offer to settle for a tiny amount. Just pay 50 dollars and we'll call it even, they say. This sounds great. But that 50 dollar payment restarts the clock.
Now the debt isn't time-barred anymore. The collector can sue you for the full balance. What seemed like a deal just cost you your legal protection.
The Lawsuit Bluff
Collectors threaten a debt lawsuit for time-barred debts. They're betting you don't know the statute has expired. They hope fear will make you pay.
But filing suit on time barred debt is illegal. If they actually do it, you have a strong legal defense. Many consumers pay without checking simply because they're scared of the court.
The Urgency Push
Collectors create fake urgency. Pay today or we sue tomorrow. This deal expires in one hour. Act now or face consequences.
This pressure is designed to stop you from researching your rights. They want you to act on emotion instead of facts. Take your time. Check the statute of limitations before doing anything.
What Happens If You Get Sued?
If a collector sues you over time-barred debt, don't panic. But also don't ignore it. This is critical.
You must respond to the lawsuit. According to court data, many consumers lose debt cases by default because they don't show up. Even if the debt is past the statute of limitations, you lose if you don't appear and raise this defense.
The burden is on you to point out the statute has expired. Judges won't do this for you. You must file an answer to the lawsuit stating the statute of limitations as your defense.
Bring proof to court. Have documentation showing when you last made a payment. Show that more time has passed than your state's statute allows. Court records and bank statements are helpful evidence.
If the collector violated the law by suing over time barred debt, you can countersue. The Fair Debt Collection Practices Act allows you to recover damages. You might also get attorney fees paid.
Many collectors drop lawsuits once defendants raise the statute of limitations defense. They know they can't win. The case gets dismissed, and you owe nothing.
The Credit Report Timeline
The statute of limitations and credit reporting operate on different timelines. This confuses many people.
Credit bureaus can report most negative information for seven years from the date of first delinquency. This seven-year clock is federal law. It applies everywher,e regardless of your state's statute of limitations.
If you stopped paying in 2019, the debt can stay on your credit report until 2026. This is true even if your state's statute of limitations expired in 2023.
According to recent credit bureau data, Americans collectively owe $1.233 trillion in credit card debt as of late 2025. About 47 percent of cardholders carry a balance from month to month. Many of these debts eventually become delinquent and appear on credit reports.
Related Content: How Long Does Credit Repair Take? Setting Expectations
Roughly 26 percent of Americans have debt in collections, according to Urban Institute research. The average collection debt is over $3,200 per person. Much of this debt is past the statute of limitations but still damages credit scores.
After seven years, negative items must be removed from your credit report. You can dispute items that stay longer. The credit bureau must delete them.
Should You Pay Time-Barred Debt?
This is a personal decision. There's no single right answer for everyone.
Arguments for paying:
- You eliminate the moral obligation
- You stop collection calls and letters
- You might negotiate a settlement for less than you owe
- Paying helps some people sleep better at night
Arguments against paying:
- You have no legal obligation once the statute expires
- Payment restarts the statute of limitations
- The debt will fall off your credit report eventually anyway
- You might need that money for current bills
According to Bankrate research, 61 percent of Americans with credit card debt have been in debt for at least a year. About 22 percent think they'll never pay it off. For many people, old time barred debt is simply uncollectable because they lack the resources.
If you decide to pay, get everything in writing first. Make sure the agreement states this payment settles the debt completely. Get confirmation they'll stop reporting to credit bureaus. Never pay without a written settlement agreement.
How to Protect Yourself
Knowledge is your best defense against debt collector tricks.
Keep Detailed Records
Save all documentation related to your debts. Keep bank statements showing your last payment. Save letters from creditors and collectors. Document every phone call with notes, including date, time, and what was discussed.
If you ever need to prove the statute has expired, these records are essential. Without them, it's your word against the collector's word.
Know Your State's Laws
Look up your state's statute of limitations for credit card debt. Write it down. Calculate when your debts become time barred based on your last payment date.
Different states have different rules about what restarts the clock. Some states restart it with any payment. Others restart it only with written acknowledgment. Know your state law specific rules.
Demand Written Verification
When a collector contacts you, ask for written verification of the debt. They must provide this within five days of first contact under federal law.
The verification notice must include the amount owed, the creditor's name, and your rights to dispute. Check the dates carefully. Calculate whether the statute has expired.
Never Make Verbal Agreements
Don't agree to anything over the phone. Collectors can twist your words or claim you said things you didn't say.
Insist on written communication. If they offer a settlement, get it in writing before paying a cent. Verbal promises mean nothing.
Dispute Errors Immediately
If a collector lies about the debt, threatens illegal action, or sues over time-barred debt, file complaints immediately.
Report violations to the Consumer Financial Protection Bureau. File a complaint with your state attorney general. Consider consulting a consumer rights attorney.
According to CFPB data, they receive thousands of complaints about debt collectors every month. Your complaint helps them track patterns and take enforcement action.
Special Situations
Some scenarios create unique statute of limitations issues.
Moving to a Different State
If you move states after the debt becomes delinquent, which state's statute applies? Usually the state where you lived when the debt was created. But this gets complicated.
Some states use the law where you currently live. Others use where the creditor is located. Court decisions vary. If you moved recently, consult an attorney about which statute applies.
Making Partial Payments
In most states, even a small partial payment restarts the entire statute of limitations. That 20-dollar payment on a 5,000-dollar debt restarts the clock completely.
Texas is an exception. As of 2019, partial payments no longer restart the statute for debt buyers. But this protection doesn't extend to original creditors.
Written Acknowledgment
In some states, signing a document acknowledging you owe the debt restarts the statute. Collectors might send papers asking you to confirm the debt. Don't sign anything without legal advice.
Judgments
If a collector sued you before the statute expired and won a judgment, different rules apply. Judgments have their own statute of limitations, usually much longer.
In Massachusetts, judgments are valid for 20 years. In many states, they last 10 to 20 years and can be renewed. A judgment gives collectors powerful collection tools, including wage garnishment and bank account levies.
The Bottom Line
According to Federal Reserve data from 2025, Americans owe over $1.2 trillion in credit card debt. The average household with revolving debt owes over $10,000. With average interest rates above 23 percent, these debts grow fast.
Many people fall behind. They can't afford payments. Debts go to collections. But collectors rarely tell consumers about the statute of limitations. They profit from ignorance.
The statute of limitations is your legal shield. After the time period expires in your state, collectors cannot force you to pay through lawsuits. You gain powerful protections.
But you must actively use these protections. Courts won't raise the statute of limitations for you. Collectors definitely won't tell you about it. You need to know your rights and assert them.
Here's what you should do right now:
Look up your state's statute of limitations for credit card debt. Calculate when your old debts become time barred. Keep records proving when you last made payments. Never make payments on old debts without understanding the consequences. Get everything in writing before paying anything. Know that collectors cannot sue over time barred debt.
The statute of limitations levels the playing field. It prevents creditors from holding debts over your head forever. It gives you a fresh start after a reasonable time period.
Don't let debt collectors bully you into giving up these protections. Know your rights. Use them. The law is on your side.