Statute of Limitations on Past Debt

U.S. laws regarding the statute of limitations on past debt vary from state to state. In some cases, the language of the original contract defines the applicable statute of limitations.

Purpose

The statute of limitations on debt collection ensures a measure of fairness for debtors. Debtors should not have to worry about being sued over debt for their entire lives, and they should be able to defend themselves with evidence if sued for debt.

Time Frame

As of 2010, the statute of limitations on past debt can range from three to 15 years, depending on state laws and the type of debt incurred. Three to six years is typical for most forms of debt. However, any payments you make on past debts may restart the statute of limitations from the date of that payment. Also, the statute of limitations normally applies to methods of debt collection (e.g., suing or threatening to sue), but not to the debt itself.

The Fair Debt Collection Practices Act

Creditors and debt collectors must identify themselves, and provide written information to you by law.

The Fair Debt Collection Practices Act prohibits abusive practices by debt collectors. It addresses such issues as misidentification by debt collectors, failure to provide written information to debtors, and suing or threatening to sue after the statute of limitations for a debt expires. You may be able to sue creditors who use illegal collection methods like these.