By Stephanie Lane , Attorney Case Western Reserve University School of Law
Updated by Amy Loftsgordon , Attorney University of Denver Sturm College of Law
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Many people think that if the statute of limitations on a debt has expired, the debt is extinguished. But that's only the case in a few states. So, if the time limit to sue on the old debt expired under your state's statute of limitations, that generally doesn't mean that a creditor or bill collector must stop contacting you about it. Except for those few states where an expired statute of limitations eliminates the debt, a debt collector can still ask you to pay the debt. However, the collector can't legally sue you or threaten to sue you for it.
The "statute of limitations" is a rule that sets a time limit within which a creditor may sue you for payment of a debt. The length of time that a creditor has to sue you for an unpaid debt varies from state to state.
The time limit might also depend on whether your agreement with the creditor is in writing and whether the debt is a special type, like a revolving or open-ended account.
If the debt that the collector is calling about is several years old, find out what your state's statute of limitations is for a lawsuit to collect the debt. Generally, the statute of limitation begins when you last made a payment, but it can also be the date you last used the account, made a promise to pay, entered a payment agreement, or even acknowledged liability for the debt.
The actual date depends on the type of debt and the state law where you live or the state specified in your credit agreement.
However, just because the statute of limitations has expired doesn't mean a creditor or collector won't sue you. If you get sued, you'll have to raise the statute of limitations as a defense. If you don't, the creditor or collector might be able to get a judgment against you on an otherwise unenforceable debt.
Again, a statute of limitations usually doesn't eliminate the debt; it just limits the collector's ability to win a court case. But you still might get collection letters or calls about a debt even if the statute of limitations has expired.
If a debt collector contacts you about an old, time-barred debt, be very careful in what you say to the bill collector. If you say or sign anything that might be considered an acknowledgment of the validity of the debt—that is, you agree that you owe that debt even if the statute of limitations to sue has expired—then you might have revived, waived, or extended the statute of limitations.
Or, if you make an agreement with that bill collector to pay the old debt, then you also might revive, waive, or extend the statute of limitations.
If you're unsure whether the debt has expired under your state's statute of limitations, and you ask the debt collector if that debt is time-barred, the Fair Debt Collection Practices Act (FDCPA) requires that the collector tell the truth. If the debt is time-barred, but the debt collector has threatened to sue you or take other legal action to pressure you into settling that debt, then it probably violated the FDCPA. The FDCPA prohibits debt collectors from bringing or threatening to bring a legal action on a time-barred debt. ( 12 C.F.R. § 1006.26 (b)).
In addition, if the debt collector lied to you about the age of the debt and whether it had expired under the statute of limitations, then it might have also violated the FDCPA.
California Law Requires Debt Collectors to Inform Consumers if a Debt Is Time-BarredAs of January 1, 2019, debt collectors in California have to tell a debtor if a debt is time-barred. The collector has to include the notice in the first written communication sent to the consumer after the statute of limitations passes. Some other states and cities have similar laws.
If you're contacted about an old, time-barred debt, you should take a look at your credit reports. Often, bill collectors or creditors report negative information about the debt as if it's recent information, which might be a violation of the Fair Credit Reporting Act.
Consult with a legal aid lawyer, another lawyer in your state, or your state attorney general's office to learn the applicable statute of limitations in your state and in your particular circumstances.