There is no statute of limitations that governs defaulting on credit card debt. There is a statute of limitations, however, that establishes a maximum time frame within which a creditor must file a civil action in court to recover the default balance owed.
Identification
The statute of limitations is a principle of law that precludes a plaintiff from filing suit against a defendant after the expiration of a certain period of time. Statute of limitations periods are established by each state for various legal causes of action. The statute of limitations period for filing lawsuits against a credit card debtor is governed by each state's limitations period specified for breach of contract actions.
State Law
The statue of limitations period can vary from state to state. The relevant limitations period for a breach of contract action may be six years in one state and only three years in another.
Significance
A civil action by a creditor that is filed outside the statute of limitations period is said to be "time barred," and upon request of the debtor must be dismissed by the court.
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