Time-Barred Debt

A debt so old that the statute of limitations bars a lawsuit to collect it - what a collector may and may not do about it, how a payment can revive it, and why the credit-reporting clock is a different clock.

Looking for a lawyer rather than a definition? Skip to the state-by-state list of law firms for this.

What it means

A debt does not disappear when its statute of limitations runs, but the creditor's ability to sue on it does. The limitation period for a contract or account claim is set by state law, runs from a date the state's rule defines - usually the last payment or the default - and varies between states and between kinds of debt. Once it has passed the debt is time-barred: the creditor or a debt buyer may still ask to be paid, but a lawsuit can be defeated by raising the limitation period as a defense. It is a defense, not an automatic bar: a consumer who ignores the summons and lets a default judgment enter has usually lost the point.

Federal regulation now prohibits a debt collector from suing or threatening to sue on a debt it knows or should know is time-barred, and a collector that does so violates the Fair Debt Collection Practices Act whether or not the consumer knew the debt was old. The Supreme Court has held, however, that filing a proof of claim for a time-barred debt in a consumer's bankruptcy is not a violation, because the bankruptcy process is designed to sort such claims out.

The trap is revival. In many states a partial payment, a written acknowledgment of the debt, or a new promise to pay restarts the limitation period, so a small "good faith" payment on a debt that was time-barred can make it collectible in full. Separately, the period during which a debt may appear on a credit report is set by federal law and runs independently of the state limitation period; a debt can be time-barred but still reportable, and reportable long after it could be sued on.

Where this comes from

When people hire a lawyer for this

Anyone contacted about an old debt should find out, before paying or promising anything, whether it is time-barred in their state and whether a payment would revive it - a legal aid office or a consumer lawyer can answer that from the dates. Anyone sued on an old debt should answer the lawsuit and raise the limitation defense, since it is lost by default; and a consumer who was threatened with suit on a barred debt may have a claim of their own under the federal statute.

Worried about the cost? A lawyer can be hired for one part of a case only (limited-scope representation), may be paid from what a claim recovers (contingency fee), or may be free through a pro bono program or legal aid; a court can also waive its own filing fees.

Find a lawyer for this in your state

Choose your state to see Debtor-Creditor law firms in the city where we list the most; your city may be under “other cities”, A to Z. A state marked “Consumer Rights” has no Debtor-Creditor listing yet and opens the broader page.

• Alabama (Birmingham)
  +1 other city

  • Montgomery
• Alaska (Anchorage)
• Arizona (Chandler)
  +6 other cities

  • Gilbert
  • Glendale
  • Mesa
  • Phoenix
  • Scottsdale
  • Tucson
• Arkansas (Little Rock)
• California (Modesto)
  +19 other cities

  • Anaheim
  • Bakersfield
  • Chula Vista
  • Fontana
  • Fremont
  • Fresno
  • Oakland
  • Sacramento
  • San Diego
  • San Francisco
  • San Jose
  • Stockton
  • and 7 more with fewer listed firms
• Colorado (Aurora)
  +2 other cities

  • Colorado Springs
  • Denver
• Connecticut (Bridgeport)
• Delaware (Wilmington)
• District of Columbia (Washington)
• Florida (Jacksonville)
  +5 other cities

  • Hialeah
  • Miami
  • Orlando
  • St Petersburg
  • Tampa
• Georgia (Atlanta)
• Hawaii (Honolulu, Consumer Rights)
• Idaho (Boise, Consumer Rights)
• Illinois (Chicago)
• Indiana (Fort Wayne)
  +1 other city

  • Indianapolis
• Iowa (Des Moines)
• Kansas (Wichita)
• Kentucky (Lexington)
  +1 other city

  • Louisville
• Louisiana (Baton Rouge)
  +2 other cities

  • New Orleans
  • Shreveport
• Maine (Portland)
• Maryland (Baltimore)
• Massachusetts (Boston)
• Michigan (Detroit)
• Minnesota (Minneapolis)
  +1 other city

  • Saint Paul
• Mississippi (Jackson)
• Missouri (Kansas City)
  +1 other city

  • St. Louis
• Montana (Billings)
• Nebraska (Lincoln)
  +1 other city

  • Omaha
• Nevada (Henderson)
  +2 other cities

  • Las Vegas
  • North Las Vegas
• New Hampshire (Manchester)
• New Jersey (Jersey City)
  +1 other city

  • Newark
• New Mexico (Albuquerque)
• New York (New York City)
  +2 other cities

  • Buffalo
  • Rochester
• North Carolina (Charlotte)
  +5 other cities

  • Durham
  • Fayetteville
  • Greensboro
  • Raleigh
  • Winston-Salem
• North Dakota (Fargo, Consumer Rights)
• Ohio (Columbus)
  +3 other cities

  • Cincinnati
  • Cleveland
  • Toledo
• Oklahoma (Oklahoma City)
  +1 other city

  • Tulsa
• Oregon (Portland)
• Pennsylvania (Philadelphia)
  +1 other city

  • Pittsburgh
• Rhode Island (Providence, Consumer Rights)
• South Carolina (Columbia)
• South Dakota (Sioux Falls)
• Tennessee (Memphis)
  +1 other city

  • Nashville
• Texas (Arlington)
  +12 other cities

  • Austin
  • Corpus Christi
  • Dallas
  • El Paso
  • Fort Worth
  • Garland
  • Houston
  • Irving
  • Laredo
  • Lubbock
  • Plano
  • San Antonio
• Utah (Salt Lake City)
• Vermont (Burlington)
• Virginia (Chesapeake)
  +3 other cities

  • Norfolk
  • Richmond
  • Virginia Beach
• Washington (Seattle)
  +2 other cities

  • Spokane
  • Tacoma
• West Virginia (Charleston)
• Wisconsin (Madison)
  +1 other city

  • Milwaukee
• Wyoming (Cheyenne)

Related terms

Other entries in the same area of law, each written from the same primary sources.

• Automatic Renewal and Negative Option SubscriptionsThe federal and state rules on subscriptions that keep charging until you cancel - what a seller must disclose and obtain before enrolling you, the cancellation mechanism it must offer, and where the law currently stands.
• Billing Error Dispute (Credit Card Chargeback)The federal procedure for disputing a charge on a credit card statement - a written process with deadlines on both sides that the card issuer must follow, not a courtesy it may offer.
• Class ActionOne lawsuit brought by named plaintiffs on behalf of a larger group with the same injury.
• Cooling-Off Rule (Canceling a Door-to-Door Sale)The federal right to cancel certain sales made at your home or away from the seller's regular place of business, the notice the seller must give you, and the many sales it does not reach.
• Credit Freeze and Fraud AlertTwo free federal tools for stopping identity thieves from opening accounts in your name - one that locks your credit file, one that warns lenders to check who they are dealing with.
• Credit Report DisputeThe federal process for forcing a credit bureau and the company that reported an item to investigate information you say is wrong.
• Data Breach Notification RightsWhat a business must tell you when your personal information is exposed, which laws require it, what the notice must say, and what a person whose data was breached can actually claim.
• Debt Validation Notice and Disputing a DebtThe written notice a debt collector must send when it first contacts you, what it must contain, and the dispute right it opens - during which the collector must stop until it verifies the debt.
• Fair Debt Collection (Collector Conduct Rules)Federal limits on what a third-party debt collector may say and do - including a written demand that stops contact, and a 30-day right to make them verify the debt.
• Gift Card and Prepaid Card RulesThe federal limits on gift card expiration and fees, the state laws that go further, and the separate protections for reloadable prepaid cards used like bank accounts.
• Identity Theft Recovery RightsThe federal rights a victim of identity theft can use to remove fraudulent accounts from a credit report, obtain the records of what the thief did, stop the debts being collected, and limit liability for the charges.
• Implied Warranty and the Magnuson-Moss ActThe promises the law reads into a sale whether or not anyone wrote them down, and the federal act that limits how a seller can take them away.
• Mandatory Arbitration ClauseA term in a consumer contract that sends any dispute to a private arbitrator instead of a court, usually alone rather than as part of a class - and federal law makes most of them enforceable.
• Right of Rescission (Home Loans)A federal right to cancel certain loans secured by your home during a short window after signing - and for much longer if the lender failed to give the required disclosures.
• Robocalls and the TCPAThe federal law that restricts automated and prerecorded calls and texts to your phone, gives you a Do Not Call right, and lets you sue for a fixed amount per illegal call.
• Unauthorized Debit Card and Electronic Transfers (Regulation E)The federal rules that limit a consumer's loss from an unauthorized debit card, ATM, ACH or payment-app transfer, require the bank to investigate an error, and decide who bears a loss the consumer was tricked into sending themselves.
• Unfair and Deceptive Practices (UDAP)The consumer-protection laws, one federal and one in every state, that make it illegal for a business to mislead you or treat you unfairly - and the state versions are the ones a consumer can actually sue under.
• Vehicle RepossessionA lender's right to take back a financed car after default without going to court - subject to rules about how it is taken, how it is sold, and what you can still be made to pay afterwards.
• Wage GarnishmentA legal order requiring an employer to withhold part of someone's pay and send it to a creditor.

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