Credit glossary
Statute of limitations
The state-law deadline for suing you over a debt, which varies by state and debt type and runs separately from credit reporting limits.
Once the deadline passes, the debt becomes time-barred, and Regulation F bars a collector from suing or threatening to sue on it, though in most states it can still ask you to pay. In some states a payment can restart the clock. The CFPB says that if you're sued anyway, a court can still enter judgment if you don't respond and raise the expired deadline as a defense.
Keep the two clocks apart. The credit reporting limit is federal: seven years from 180 days after the original delinquency, and a payment never restarts it. The lawsuit deadline is state law and can work differently. Before paying an old debt, find your state's rule and check whether a partial payment would revive the collector's right to sue.
Guides that go deeper
- The statute of limitations on debt, and how a payment can reset itA statute of limitations limits when a collector can sue, not whether it can ask you to pay. How the clock starts, how it can restart, and what Reg F bans.
- Sued by a debt collector: what to do in the first two weeksA debt lawsuit you ignore usually ends in a default judgment. What to read on the summons, how to respond on time, and where to find free legal help.
- Zombie debt and illegal re-aging: how old debts come backZombie debts are old, paid, or wrong debts that resurface after a sale. Re-aging is reporting a newer delinquency date. How to spot and fight both.
Sources
- Can debt collectors collect a debt that's several years old?, Consumer Financial Protection Bureau
- 12 CFR 1006.26: Collection of time-barred debts, eCFR
- 15 U.S.C. 1681c: Requirements relating to information contained in consumer reports, Legal Information Institute, Cornell Law School
- Zombie Debt, National Consumer Law Center (2015)
This is education, not legal or financial advice. Spot an error? Tell us and we'll fix it.