The statute of limitations on debt is a rule limiting how long a creditor can sue an individual for payment on a debt. All consumer debts have limits on the number of years creditors have, and each state has its own limitations.
Debts that have passed the statute of limitations are known as time-barred debt. Even after the statute of limitations passes, these debts still appear on credit reports and your credit rating is still affected. Furthermore, having time-barred debts does not mean you are no longer responsible for paying the debt back.
Every state has its own statute of limitations on debt, and each varies depending on the type of debt you have. There are four types of debt. An oral agreement is a debt made based on a verbal agreement to pay back the money. A written contract is a debt that came with a contract signed by you and the creditor. A promissory note is a written agreement to pay back the debt in payment at a specific interest rate by a certain date and time. An open-ended account is an account with a revolving balance that you can repay and then borrow again such as a credit card.
It is important that you establish which type of debt you have when looking at each state’s limits.
Below is a table of each state’s statute of limitations on debt in years, sorted by the four categories.