⏰ Statute of Limitations for Debt Collection by State

The statute of limitations on debt collection is the legal time limit during which a creditor or judgment holder can file a lawsuit to collect an unpaid debt. Once this period expires, the debt becomes “time-barred” — meaning you lose the right to sue for collection permanently, even though the underlying debt technically still exists and is still owed. Understanding these deadlines is absolutely critical for anyone pursuing debt recovery, because missing the window to file suit eliminates your most powerful collection tool: the ability to obtain an enforceable court judgment. ⏰

Every state sets its own statute of limitations periods, and most states assign different time limits depending on the type of debt involved. The four primary categories include written contracts (signed agreements with specific terms), oral contracts (verbal agreements without written documentation), promissory notes (formal written promises to repay a specific sum), and open-ended accounts (revolving credit arrangements like credit cards and lines of credit). Limitation periods range from as short as 3 years in some states to as long as 15 years in others — making it essential to identify exactly which state law applies and which debt category matches your situation before time runs out.

For creditors actively pursuing collection, the statute of limitations creates genuine urgency that compounds with every passing month. If you are trying to collect from a debtor who has disappeared or moved out of state, the clock does not pause just because you cannot locate them — in most states it keeps ticking. Our skip tracing services locate debtors quickly — results delivered in 24 hours or less — so you can initiate legal proceedings before your filing window closes permanently. Running a simultaneous asset search confirms whether the debtor has assets worth pursuing, helping you make an informed decision about investing in litigation before the deadline passes.

The consequences of letting the statute expire are severe and irreversible. Unlike a judgment — which can be renewed before it expires — the statute of limitations on a debt cannot be extended once it runs out (absent certain tolling events or debtor actions that restart the clock). You cannot go back to court and ask for more time. You cannot argue that the debtor should have paid voluntarily. Once the filing deadline passes, your only remaining option is to request voluntary payment with zero legal enforcement power behind the request — and most debtors know this, which means they have no incentive to pay. Filing suit before the statute expires — even against a debtor who currently appears to have few assets — converts your debt into a judgment with a much longer enforcement period and access to powerful tools like judgment liens, wage garnishment, and bank levies.

The table below shows the statute of limitations in years for each of the four primary debt categories across all 50 states plus the District of Columbia. Periods are measured from the date the cause of action accrues — typically the date of the last payment, last account activity, or breach of agreement. States highlighted with longer periods (10+ years for written contracts) give creditors significantly more time to pursue legal action, while states with shorter periods (3-4 years) demand faster action. Always verify current statutes with a licensed attorney in the relevant jurisdiction, as legislatures periodically amend these time periods. 📋

🔍 Notable Patterns in the Table

Several important patterns emerge from the state-by-state data. States with the longest written contract periods — Kentucky (15 years), Illinois (10 years), Indiana (10 years), Iowa (10 years), Louisiana (10 years), Missouri (10 years), Rhode Island (10 years), West Virginia (10 years), and Wyoming (10 years) — give creditors substantial time to pursue litigation. States with the shortest periods — Alaska (3 years), Delaware (3 years), Mississippi (3 years), South Carolina (3 years), Maryland (3 years), New Hampshire (3 years), and North Carolina (3 years) — demand immediate action.

Most states assign different limitation periods to different debt types, with written contracts and promissory notes typically receiving longer periods than oral contracts and open accounts. However, several states — including Colorado, Hawaii, Michigan, Minnesota, New Jersey, Oregon, South Dakota, and Tennessee — apply the same period across all four categories, simplifying the analysis. California stands out with one of the shortest oral contract periods at just 2 years, while Rhode Island is notable for applying a uniform 10-year period across all debt types.

Most states distinguish between four categories of debt when applying their statute of limitations. Correctly classifying which category your debt falls into is critical because the applicable time period can differ by several years depending on the designation. Misclassifying the debt type could lead you to believe you have significantly more or less time than you actually do — a mistake that can cost you your entire claim. 📝

📋 Written contracts are the most common category in commercial debt collection. A written contract encompasses any agreement documented in writing and signed by the parties — including loan agreements, service contracts, construction contracts, lease agreements, equipment purchase agreements, and purchase orders with terms and conditions. Written contracts typically receive the longest statute of limitations because the written documentation eliminates disputes about the agreement’s existence and terms. If you are collecting on a signed agreement where the other party failed to pay as promised, this is almost certainly your applicable category. The written nature of the agreement also makes it much easier to prove your case in court and to establish exactly when the breach occurred for purposes of calculating the limitation period.

🗣️ Oral contracts — verbal agreements made without written documentation — are legally enforceable in most states for most types of transactions, but carry shorter statutes of limitations because they are inherently harder to prove as time passes. If you agreed to provide services or goods based on a handshake or verbal promise to pay, and the other party failed to follow through, your claim falls under the oral contract statute. The shorter limitation period reflects the practical reality that memories fade, witnesses become unavailable, and the specific terms of verbal agreements become increasingly difficult to establish with the passage of time. Whenever possible, follow up verbal agreements with written confirmation to convert the claim into the written contract category and gain the benefit of the longer limitation period.

💰 Promissory notes are a specific type of written instrument governed by the Uniform Commercial Code (UCC) in most states. A promissory note contains an unconditional written promise to pay a definite sum of money to another party, either on demand or at a specified future date. Examples include personal loans documented with a formal note, real estate promissory notes, business financing instruments, and structured settlement notes. Because promissory notes are formal financial instruments with clear terms, they often receive limitation periods similar to or identical to written contracts — though some states treat them differently.

💳 Open-ended accounts include revolving credit arrangements where the balance fluctuates as charges and payments are made, with no fixed total amount or defined payment schedule. Credit cards, retail store accounts, medical provider accounts, and business lines of credit all fall into this category. Open accounts often carry shorter limitation periods than written contracts because determining the “start date” for the limitation period is more complex — the ongoing nature of the account means there is no single breach event, and courts must determine whether the clock runs from the last payment, the last charge, or the date the account was closed or charged off.

Knowing the statute of limitations period is only half the equation. Understanding exactly when the clock begins running — and what events can pause, restart, or extend it — is equally important. The “accrual date” (when the clock starts) and “tolling” events (when the clock pauses or resets) can dramatically alter whether your claim is still timely or has already expired. 🔄

⏰ When the Clock Starts Running (Accrual Events)

📅 Date of last payment. In most states and for most debt types, the statute of limitations clock begins running from the date of the debtor’s last payment on the obligation. This is particularly significant because it means the clock may have started much later than you think. If the debtor made payments for two years after the original default before stopping completely, the clock runs from that final payment date — not from the initial breach. This effectively gave you two additional years beyond what you would have had if no payments were ever made.

📅 Date of breach or default. For contracts with specific payment schedules and defined terms, the clock may instead start from the date the debtor first breached the agreement by missing a required payment. Some states treat each missed installment as a separate breach with its own limitation period (the “installment rule”), while others start the clock on the entire remaining balance from the date of the first missed payment or from the date the creditor accelerates the debt (the “acceleration rule”). The distinction matters significantly for installment debts and can mean the difference between a timely claim and a time-barred one.

📅 Date of last account activity. For open accounts and revolving credit, the clock typically begins from the date of the last transaction or payment — whichever occurred more recently. A purchase charged to the account can sometimes restart the clock just as a payment can, though this varies by state. The key date is usually the last activity on the account before it went dormant, was charged off, or was sent to collections.

⏸️ Events That Pause the Clock (Tolling)

🏃 Debtor absence from the state. Many states toll (pause) the statute of limitations while the debtor is physically absent from the state. This rule exists to protect creditors who cannot serve a debtor with a lawsuit because the debtor has left the jurisdiction. If a debtor disappears or moves out of state, the limitation period may stop running during their absence and resume only when they return. However, proving the exact dates of absence can be challenging, and some states have modified or eliminated this tolling provision — particularly as interstate service of process has become easier.

⚖️ Debtor bankruptcy filing. Filing for bankruptcy triggers an automatic stay that halts all collection activities and tolls the statute of limitations. The tolling typically lasts for the duration of the bankruptcy proceeding and may extend for an additional period (commonly 30-60 days) after the stay is lifted or the bankruptcy case is closed. This protects creditors from losing their filing rights while legally prohibited from pursuing collection.

🏥 Debtor incapacity or minority. If the debtor is legally incapacitated (adjudged mentally incompetent, in some states imprisoned, or a minor), the statute of limitations may be tolled until the incapacity ends — the debtor regains competency, is released, or reaches the age of majority. These tolling provisions vary significantly between states.

🔄 Events That Restart the Clock

💰 Partial payment on the debt. In many states, any payment on the debt — even a token amount — restarts the statute of limitations from the date of that payment. This is one of the most consequential tolling provisions and is exactly why many debt collection strategies emphasize obtaining even small partial payments from debtors. A $50 payment on a $50,000 debt could restart the entire 6-year limitation period, giving the creditor an entirely new window to file suit. However, some states require the payment to be voluntary and with knowledge that the statute might restart, and a few states have eliminated this restart provision entirely.

📝 Written acknowledgment of the debt. A written statement by the debtor acknowledging the debt exists — or promising to make payments — can restart the limitation period in many states. This includes letters offering to pay, emails discussing the outstanding balance, signed payment plans (even if no payments are actually made), and in some states, even financial statements listing the debt as a liability. The acknowledgment must typically be in writing and must reference the specific debt at issue.

The statute of limitations should drive your collection strategy and timeline from the very first day a debt goes unpaid. Creditors who plan proactively around these deadlines recover significantly more than those who react after time has already run short. Here are the seven strategic principles every creditor should build their collection approach around: 🎯

⚡ 1. Set a hard filing deadline — and stick to it. The moment a debt goes unpaid, calculate your statute of limitations deadline and enter it on your calendar with a buffer of at least 6 months before the actual expiration. This is your “must file by” date for initiating litigation. Too many creditors drift past this date while waiting for voluntary payment or negotiating payment plans that the debtor never follows through on. The debtor’s promises to pay “next month” can stretch into years until your filing window silently closes. Having a firm, pre-committed deadline eliminates the risk of accidental expiration and forces timely decision-making about whether to pursue litigation.

🔍 2. Locate the debtor before time runs out. You cannot file and serve a lawsuit against someone whose current address you do not know. If the debtor has gone missing, moved without forwarding their address, or is deliberately evading collection, invest in professional skip tracing immediately rather than conducting amateur searches that consume months of your dwindling limitation period. Our skip tracing results are delivered in 24 hours or less — providing the debtor’s current address, phone numbers, employment information, and associated individuals so you can serve the lawsuit and begin the litigation process without delay.

📋 3. Convert the debt to a judgment before expiration. This is perhaps the single most important strategic principle in this entire guide. Once you obtain a court judgment, you are no longer subject to the original debt’s statute of limitations. The judgment has its own enforceability period — typically 10-20 years depending on the state — and can be renewed in most states before expiration. Converting your claim into a judgment gives you access to powerful enforcement mechanisms including judgment liens on real property, wage garnishment, bank levies and asset seizure, debtor examinations under oath, and the ability to domesticate the judgment across state lines. Even if the debtor is currently judgment-proof, having the judgment on the books means you can move to collect whenever their financial situation improves — years or even decades from now.

🗺️ 4. Determine which state’s law applies early. If the debtor has relocated or the transaction crossed state lines, identifying the applicable state law is essential before making any filing decisions. Choice-of-law questions can be surprisingly complex. Some contracts contain choice-of-law provisions specifying which state’s law governs the agreement. Without such a provision, courts typically apply the law of the state where the contract was executed, where the debtor resides, or where performance was to occur — but results vary between jurisdictions. Some states have “borrowing statutes” that apply the shorter of their own limitation period or the period of the state where the debt originated. Resolving this question early prevents the devastating scenario of filing suit in the wrong state under the wrong limitation period.

📊 5. Assess asset viability before the deadline approaches. Filing a lawsuit costs time and money, so you want reasonable confidence that the debtor has assets worth collecting before investing in litigation. But you also cannot wait until the last minute to find out. Run an asset search early in the limitation period to determine whether the debtor owns real property, vehicles, has employment income available for garnishment, or holds business interests. If they currently have substantial assets, file suit promptly. If they appear judgment-proof today, plan to re-check their assets periodically and file suit before the deadline even if current assets are minimal — because a judgment preserves your rights for the future.

💰 6. Document any clock-restarting events meticulously. If the debtor makes a partial payment or acknowledges the debt in writing, preserve every piece of evidence with exact dates — copies of checks (front and back), payment receipts, bank statements showing the deposit, emails or letters referencing the debt, voicemails, and contemporaneous notes of any conversations. These records may be your proof that the statute of limitations restarted, potentially giving you years of additional collection time. Without documentation, a tolling or restart argument is nearly impossible to prove if the debtor contests it.

⚖️ 7. Explore the discovery rule for concealed claims. In some states and for certain types of claims — particularly those involving fraudulent asset transfers, fraud, or concealment — the statute of limitations does not begin running until the creditor discovers (or reasonably should have discovered) the facts giving rise to the claim. If you are dealing with a debtor who actively hid assets or engaged in fraudulent conveyance, the discovery rule may give you additional time beyond the standard limitation period shown in the table above. This is a fact-intensive analysis that typically requires legal counsel, but it can be a powerful tool when standard deadlines appear to have expired.

One of the most critical distinctions in debt collection law is the difference between the statute of limitations on the original debt and the enforceability period of a court judgment. These are two entirely separate time limits that serve different purposes and operate independently. Confusing them — or failing to understand how they interact — is one of the most common and costly mistakes creditors make. ⚖️

📋 The original debt’s statute of limitations governs how long you have to FILE A LAWSUIT on the unpaid obligation. This is the time limit discussed throughout this guide and shown in the state-by-state table above. Once this period expires, you can no longer bring a legal action to collect — regardless of how much money is owed, how clear the evidence is, or how badly the debtor behaved. The courthouse door is permanently closed on that claim.

⚖️ The judgment enforceability period governs how long you can ENFORCE a judgment after it has been entered by the court. This period is almost always substantially longer than the original debt’s statute of limitations — typically 10 to 20+ years depending on the state — and critically, most states allow judgments to be renewed before they expire, effectively extending the enforcement window indefinitely as long as you keep renewing on time.

This distinction is why obtaining a judgment before the statute of limitations expires is the single most important action a creditor can take. The moment you convert your claim into a judgment, you gain access to the full arsenal of enforcement tools: judgment liens on real property that attach to any property the debtor owns or later acquires, wage garnishment that captures a portion of every paycheck, bank levies that seize funds directly from accounts, debtor examinations that compel the debtor to disclose all assets under oath, and the ability to domesticate the judgment in other states where the debtor has assets or has relocated. You also gain post-judgment interest that accrues on the entire judgment amount — in some states at rates as high as 10-12% per year.

Even when a debtor appears completely judgment-proof today — no assets, no income, no property — obtaining the judgment now preserves your ability to collect in the future. People’s financial circumstances change over time. Debtors who are broke today may inherit money, start successful businesses, purchase homes, accumulate retirement savings, or land high-paying jobs years from now. A judgment on the books means you are positioned to move immediately when those assets appear. Without a judgment, you are left hoping the debtor voluntarily decides to pay a time-barred debt — which almost never happens.

Visit our judgment collection by state guide to find the specific enforceability period, renewal requirements, and available enforcement tools for your state. Our comprehensive guide on how to collect a judgment walks through the entire enforcement process step by step.

📋 Scenario 1: Racing the Clock in California

A property management company is owed $42,000 on a written services contract governed by California law, where the statute of limitations for written contracts is only 4 years. The debtor — a former commercial tenant — made their last payment 3 years and 4 months ago, leaving only 8 months before the filing deadline. The debtor has moved out of state with no forwarding address. The creditor orders a skip trace and receives results in 24 hours: the debtor is now living in Phoenix, Arizona and working as a regional sales manager for a national company. A simultaneous asset search reveals the debtor purchased a condo in Scottsdale and owns two vehicles. The creditor files suit in California within the week, properly serves the debtor through Arizona process servers, and obtains a judgment for $42,000 plus interest and costs. With a California judgment now in hand, they have 10 years (renewable) to collect instead of 8 months — and they immediately domesticate the judgment in Arizona to place a lien on the condo and initiate wage garnishment. The debtor settles for $38,000 within 60 days.

📋 Scenario 2: The Partial Payment That Reset Everything

An attorney is owed $28,000 in unpaid legal fees from a Texas client on an oral agreement (4-year statute of limitations for oral contracts in Texas). The original breach occurred 3.5 years ago, and the attorney has nearly given up. However, 14 months ago, the client sent a $2,000 check with a memo line reading “toward outstanding balance.” Under Texas law, that partial payment restarted the entire 4-year statute of limitations from the payment date — meaning the attorney now has roughly 2 years and 10 months remaining instead of just 6 months. The attorney uses the additional time strategically: ordering an asset search that reveals the former client owns a home with significant equity, a late-model truck, and has started a successful consulting business. The attorney files suit at the optimal moment for maximum leverage, and the former client — facing liens, garnishment, and a debtor examination — settles for $24,500 rather than endure public disclosure of their finances.

📋 Scenario 3: Converting a Dying Claim Into Decades of Enforcement Power

A small business owner holds a $95,000 promissory note from a former business partner in North Carolina, where promissory notes carry a 5-year statute of limitations. The partner stopped paying 4 years ago and currently has almost nothing — went through a divorce, lost their house, and is working a minimum-wage job. The creditor is tempted to wait until the partner’s financial situation improves before spending money on litigation. But if they wait more than another year, the statute of limitations expires permanently. Instead, the creditor invests roughly $800 in court filing fees and service costs to file suit now. They obtain a default judgment for $95,000 plus accrued interest. The North Carolina judgment is enforceable for 10 years and renewable. Three years later, the former partner inherits $120,000, launches a successful small business, and purchases a townhome. Because the creditor obtained the judgment while they still could, they immediately record a judgment lien on the townhome, levy the inheritance funds in the partner’s bank account, and garnish income from the new business — recovering the full judgment amount plus years of accumulated interest totaling over $125,000.

Statute of limitations issues end more collection efforts than any other single legal technicality. These seven mistakes are the most common and most devastating — and every one of them is entirely preventable with proper planning and timely action: ⚠️

⏰ Waiting too long to file suit. This is the most common and most catastrophic mistake in debt collection. Creditors frequently delay litigation for months or years hoping the debtor will eventually pay voluntarily — only to realize too late that the statute has silently expired. The debtor’s repeated promises to pay “next month” or “as soon as things improve” can stretch endlessly until the creditor’s right to sue evaporates permanently. Set a hard calendar deadline well before the statute expires and commit to filing if voluntary collection has not produced results by that date. The cost of not collecting grows exponentially as the deadline approaches.

📋 Misidentifying the debt type. Classifying a debt as a written contract when it is actually an open account — or vice versa — can lead you to believe you have years more time than you actually do. In many states, the difference between written contract and open account periods is 3 or more years. When the classification is genuinely ambiguous, always use the shorter applicable limitation period and plan your filing timeline accordingly.

🗺️ Applying the wrong state’s law. Multi-state transactions and debtors who have relocated create genuine confusion about which state’s statute of limitations applies. Filing under the assumption that one state’s longer period controls — only to have the court determine that another state’s shorter period applies — can result in immediate dismissal of a time-barred claim. Resolve the choice-of-law question with qualified legal counsel before investing in litigation, and when in doubt, apply the shorter period.

🔍 Failing to locate the debtor in time. You need the debtor’s current address to properly serve a lawsuit. If you cannot find the debtor, you cannot complete service of process — and in many jurisdictions, the lawsuit may be dismissed if not served within a specified period after filing. If the debtor has disappeared, invest in professional skip tracing immediately rather than spending months on unsuccessful amateur searches that consume your remaining limitation period. Our results are delivered in 24 hours or less.

📊 Assuming the debtor is permanently judgment-proof. Some creditors never file suit because they assume the debtor has no assets and collection would be futile. This is almost always a mistake. Even genuinely judgment-proof debtors can acquire assets in the future — through employment, inheritance, business success, marriage, or simply the passage of time. A judgment preserves your right to collect whenever those assets appear. An expired statute of limitations preserves nothing.

💰 Failing to document clock-restarting events. If the debtor makes a partial payment or sends a written acknowledgment of the debt, you need ironclad proof of the date and the event — copies of checks (front and back), payment receipts, bank statements, emails, voicemails, and detailed contemporaneous notes. Without this documentation, proving the statute of limitations restarted is nearly impossible if the debtor contests it in court.

📅 Not tracking multiple debts separately. If you have multiple unpaid debts from the same debtor — for example, several unpaid invoices over a period of months — each debt may have its own separate statute of limitations start date. Tracking them as a single lump sum rather than individually can cause you to miss the expiration date on earlier debts while focusing on more recent ones. Maintain a separate limitation deadline for each distinct obligation.