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How Long Can a Debt Collector Pursue Old Debt?
Last Updated: March 19, 2024
How Long Can A Debt Be Pursued?
Dealing with debt collectors can be a daunting experience, especially when it involves debts from the past that you thought were long forgotten.
Understanding the limitations on how long a debt collector can pursue old debt is crucial for protecting your financial well-being and peace of mind.
In this guide, we'll dive into the statutes of limitations that govern debt collection efforts and arm you with the knowledge to navigate these challenging situations.
If you'd rather speak to a debt specialist now, click here for a free consultation.
Is This Debt Mine?
Mistakes happen so if you receive notification that a debt collector is planning to collect on a debt, ask the following questions:
- Is debt is mine?
- Is the debt amount accurate?
- Are the debt circumstances correct?
- Is debt within your state’s statute of limitations?
If any of these are incorrect, immediately contact the debt collection agency with documentation proving your claim.
- Make copies of documents and mail them via registered, certified, or signature required mail
- DO NOT send the originals
- Keep a copy of the letter and any other communication from the collector
- Be polite
- Ask for a written validation of the debt
Do NOT
- Use profanity
- Make promises to pay
- Admit that you are responsible
- Make threats
- Lie
Statute of Limitations
Most states have a statute of limitations that covers written contracts, oral contracts, promissory notes, and open-ended contracts. Statutes of limitations mean that a debtor can not SUE you to collect the debt if it is older than a set number of years. It does not mean that they cannot continue to try to collect.
A written contract includes term loans like car purchases. An oral contract is a verbal agreement to pay. A promissory note is an I.O.U. where you promised to pay someone back. The open-ended contract includes credit cards and other revolving loans.
The statutes of limitations can be confusing. A debtor may claim that the statute of limitation is based on the state where the original creditor is incorporated. If you have moved, the statute of limitations may be the state where you lived when the debt was acquired.
The table below shows the statute of limitations on debt collection by states plus D.C. Notice that the statutes of limitations range between three and ten years.
Click the link for a full state list:
Source: World Population Review Statute of Limitations Full State List
| State | Written contracts | Oral contracts | Promissory notes | Open-ended accounts |
|---|---|---|---|---|
| Alaska | 3 years | 3 years | 3 years | 3 years |
| Arizona | 6 years | 3 years | 6 years | 3 years |
| Arkansas | 5 years | 3 years | 3 years | 3 years |
| California | 4 years | 2 years | 4 years | 4 years |
| Colorado | 6 years | 6 years | 6 years | 6 years |
| Connecticut | 6 years | 3 years | 6 years | 3 years |
| Delaware | 3 years | 3 years | 3 years | 4 years |
| D.C. | 3 years | 3 years | 3 years | 3 years |
| Florida | 5 years | 4 years | 5 years | 4 years |
| Georgia | 6 years | 4 years | 6 years | 6 years |
| Hawaii | 6 years | 6 years | 6 years | 6 years |
| Idaho | 5 years | 4 years | 5 years | 5 years |
| Illinois | 10 years | 5 years | 10 years | 5 years |
| Indiana | 6 years | 6 years | 10 years | 6 years |
| Iowa | 10 years | 5 years | 5 years | 5 years |
| Kansas | 5 years | 3 years | 5 years | 3 years |
| Kentucky | 10 years | 5 years | 15 years | 5 years |
| Louisiana | 10 years | 10 years | 10 years | 3 years |
| Maine | 6 years | 6 years | 6 years | 6 years |
| Maryland | 3 years | 3 years | 6 years | 3 years |
| Massachusetts | 6 years | 6 years | 6 years | 6 years |
| Michigan | 6 years | 6 years | 6 years | 6 years |
| Minnesota | 6 years | 6 years | 6 years | 6 years |
| Mississippi | 3 years | 3 years | 3 years | 3 years |
| Missouri | 10 years | 5 years | 10 years | 5 years |
| Montana | 8 years | 5 years | 8 years | 5 years |
| Nebraska | 6 years | 4 years | 3 years | 4 years |
| Nevada | 6 years | 4 years | 3 years | 4 years |
| New Hampshire | 3 years | 3 years | 6 years | 3 years |
Resetting the Statute of Limitations
While you are dealing with the old debt, do not make promises to pay, create a payment plan, or make a payment. This will rest the clock on your debt and it will be considered active. Instead, send copies of documents that prove the age of the debt. If you keep the documentation in one place, it will be easy to find each time the zombie debt appears.
Can You be Sued for Old Debt?
While technically you can not be sued for old debt, it can still happen. Always file an intent to defend with the court and show up for your court date. Do NOT ignore the court summons or fail to respond. The judge can find for the debt collector and you may end up with an arrest warrant, wage garnishment, property seizure, and/or frozen checking account.
In general, a debt collector generally will sue for amounts over $5,000. However, debt collecting is becoming a big business, so debt collectors may sue for lesser amounts.
For more information on how to handle a summons and demand letter, follow this link.
Debt Collector Harassment
If the debt collector is being aggressive or threatening, you may be able to take legal action against them. The federal Fair Debt Collection Practices Act (FDCPA) limits what a debt collector can say and do in pursuit of a debt. In addition, many states have their own FDCPA that expands certain protections to debtors.
Click here for more information on the FDCPA.
Preventing Zombie Debt
To prevent zombie debt issues in the future:
- Save debt documentation for at least 7 years after paying off or closing accounts. This provides proof the debt is no longer owed.
- Check your credit reports regularly for any errors or accounts you don't recognize. Dispute immediately in writing with the credit bureaus if bad info is found.
Contact creditors quickly if you notice errors on your report or are contacted about an unknown or inaccurate debt. This can help prevent the issues from spiraling out of control.
Bankruptcy
Declaring bankruptcy can eliminate debt entirely in some cases. This is done through a legal process of liquidating assets to pay creditors, or creating a repayment plan under court supervision. While bankruptcy can wipe away debt, it severely impacts your credit and ability to qualify for loans for the next 7-10 years.
Still, bankruptcy may be an option if you have high unmanageable debt and a very low income. Consult with a licensed bankruptcy attorney to discuss your specific situation and see if you may qualify to eliminate debt through bankruptcy.
Should You Pay Old Debt?
If you can afford to pay your old debts, you should absolutely pay them in a lump sum, up to the point where the debt is older than seven years. This removes the debt from your credit score.
HOWEVER, if you set up a payment plan for old debt and fail to make the payments, the clock is reset on the statute of limitations. Some people refuse to pay for debt outside their statute of limitations because legally they do not owe the money. Some will repay it if they can, for moral or ethical reasons. Paying collection accounts in full can raise your credit score quickly.
However, if the debt is very large, you may want to consider alternatives like debt settlement where you settle accounts for less than the full balance. This has less of an impact on your credit than bankruptcy. The downside is you may get sued or have to pay taxes on the reduced amount.
Other options include borrowing from your 401k or a home equity loan to pay off the obligations. Compare all debt relief alternatives, weighing the pros and cons of each option carefully for your situation before deciding.
After seven years, you can ask credit reporting agencies to remove the debt from your credit report. What you chose to do is based on your unique situation.
If you have more than $10,000 in credit card debt, Pacific Debt, Inc may be able to help.
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Pacific Debt, Inc
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If you have more questions, contact one of our debt specialists today. The initial consultation is free, and our debt experts will explain your options to you.
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