How Long Before Debt Collectors Sue? The Statute of Limitations on Debt

Debt collectors can feel relentless. You might be wondering, “When can this stop? Can they really sue me?” The answer is yes—debt collectors can sue you to recover the debts that you owe. 

There’s no single answer to how soon a debt collector can sue—it can be between weeks or months, but they’ll usually take steps before it gets to that point. There’s also a legal time limit, depending on your state, that prevents you from getting sued after a certain time frame. Also, if the debt owed is less than $500, debt collectors are much less likely to sue you.

This guide will shed light on debt collector lawsuits, how soon they can happen, how they affect your credit, and—most importantly—how to avoid them altogether.

Be sure to also familiarize yourself with the Fair Debt Collection Practices Act so you’re aware of your rights. 

Table of contents:

• When Can Debt Collectors Sue?
• Factors Affecting a Debt Collector’s Decision to Sue 
• What to Do if You’re Sued
• How Debt Collection Affects Your Credit 
• Strategies to Avoid Debt Collections 

When Can a Debt Collector Sue You?

While there’s no set-in-stone timeline on how soon a debt collector can sue, you are more at risk if you have an unpaid debt for more than six months. 

However, there is a legal timeframe for how long debt collectors can collect debt. This is known as the statute of limitations, which varies by state and ranges from three to 15 years. 

The statute of limitations also depends on the type of debt that is owed—here’s a breakdown of the different types of debt: 

• Written contracts: These are repayment term agreements that are signed by the borrower, like mortgages and loans. The limitation for this type of debt is an average of 6 years. 
• Oral contracts: These are verbal agreements that are not written on paper, like a handshake agreement. These average about four years. 
• Open-ended accounts: These types of debts come from things like credit cards since they don’t have a set repayment amount. These average about five years after your last credit card payment. 
• Promissory notes: These are written promises to repay a specific sum of money. The average timeline is about six years. 

The statute of limitations doesn’t wipe your slate clean. Debt collectors can still reach out to ask you to pay the debt after this expires—they just can’t legally take you to court. However, there are rules about when and how debt collectors are allowed to contact you: 

• Only being able to reach you within specific hours (typically 8 am – 9 pm) and have a limit on call frequency within a week.
• Honoring your requests to stop contacting you at work, via email/text, or on social media.

Tip: Making a partial payment to your debt may restart the timeline for your statute of limitations because it shows the debt collector that you haven’t abandoned the debt. Avoid confirming that the debt is yours, and never give out personal information over the phone.  

Debt Collection Statute of Limitations by State 

Below is a list of the statute of limitations by state according to each debt type. Be sure to double-check the Attorney General office for your state for the most up-to-date information on these time ranges: 

State	Written Contract	Oral Contract	Open-Ended Accounts	Promissory Notes
Alabama	6 years	6 years	3 years	6 years
Alaska	3 years	3 years	3 years	3 years
Arizona	6 years	3 years	6 years	6 years
Arkansas	5 years	3 years	5 years	5 years
California	4 years	2 years	4 years	4 years
Colorado	3 (6 most debts; rent) (2 tortious breach)	3 years (6 short-term debt/rent ) (2 tortious breach)	6 years	6 years
Connecticut	6 years	3 years	6 years	6 years
Delaware	3 years	3 years	3 years	3 years
District of Columbia	3 years	3 years	3 years	3 years
Florida	5 years	4 years	5 years	5 years
Georgia	6 years	4 years	6 years	6 years
Hawaii	6 years	6 years	6 years	6 years
Idaho	5 years	4 years	4 years	5 years
Illinois	10 years	5 years	5 years	10 years
Indiana	10 years	6 years	6 years	10 years
Iowa	10 years	5 years	5 years	10 years
Kansas	5 years	3 years	3 years	5 years
Kentucky	10 (15 years for contracts entered into on or before July 15, 2014)	5 years	10 years	15 years
Louisiana	10 years	10 years	3 years	10 years
Maine	6 years	6 years	6 years	20 years
Maryland	3 years	3 years	3 years	6 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	5 years	10 years
Montana	8 years	5 years	5 years	8 years
Nebraska	5 years	4 years	4 years	5 years
Nevada	6 years	4 years	4 years	3 years
New Hampshire	3 years	3 years	3 years	6 years
New Jersey	6 years	6 years	6 years	6 years
New Mexico	6 years	4 years	4 years	6 years
New York	6 years	6 years	3 years	3 years
North Carolina	3 years	3 years	3 years	5 years
North Dakota	6 years	6 years	6 years	6 years
Ohio	6 years	4 or 6 years	6 years	8 years
Oklahoma	5 years	3 years	3 years	6 years
Oregon	6 years	6 years	6 years	6 years
Pennsylvania	4 years	4 years	4 years	4 years
Rhode Island	10 years	10 years	10 years	10 years
South Carolina	3 years	3 years	3 years	3 years
South Dakota	6 years	6 years	6 years	6 years
Tennessee	6 years	6 years	6 years	6 years
Texas	4 years	4 years	4 years	4 years
Utah	6 years	4 years	4 years	6 years
Vermont	6 years	6 years	6 years	14 years
Virginia	5 years	3 years	3 years	6 years
Washington	6 years	3 years	6 years	6 years
West Virginia	10 years	5 years	5 years	6 years
Wisconsin	6 years	3 years	6 years	10 years
Wyoming	10 years	4 years	8 years	10 years

Sources: Nolo and InCharge Debt Solutions

Factors Affecting a Debt Collector’s Decision to Sue 

While the statute of limitations sets the outer boundary, debt collectors consider several factors before deciding to sue you. Here’s what can influence their decision:

• Amount of debt: Larger debts are more likely to be pursued through lawsuits. Going to court is a lengthy and costly process, so the potential return on investment (your repayment on a large debt) makes the legal process more worthwhile for them. Smaller debts might be seen as less cost-effective to collect through lawsuits, and some states will avoid small claims courts altogether. 
• Age of debt: Fresh delinquencies, where you’ve recently missed payments, are often addressed more aggressively than older debts. Collectors might prioritize working with you on repayment plans before resorting to lawsuits for newer delinquencies.
• Your location: Local laws and court costs can play a role. In states with more favorable legal environments for debt collection or lower court filing fees, collectors may be quicker to sue.
• Collector practices: Some larger collectors may be more aggressive than others—they sometimes have access to more resources that help score and prioritize consumers with larger debt amounts.

What to Do if You’re Being Sued

Being sued by a debt collector can be stressful, but some steps from the Consumer Financial Protection Bureau and Federal Trade Commission can help you navigate the process:

• Respond to the collector: Responding to the lawsuit is crucial. Ignoring it can lead to an automatic judgment against you, meaning the court will rule in the collector’s favor without your defense, and you can lose your ability to dispute. The debt collector could also get the court to put a lien on your property, like your house, if you don’t respond. 
• Talk with an attorney: An attorney can advise you on your legal rights and help you navigate the lawsuit process. To start, you can reach out to a legal aid office in your area or find an attorney with experience in the Fair Debt Collection Practices Act (FDCPA). 
• Gather paperwork: Collect any documents related to the debt, including account statements, original credit agreements, proof of payments you’ve made, and any communication you’ve had with the collector. This documentation can be vital for your defense if you’re wrongly accused of owing debt. 
• Review the lawsuit: If your debt is valid, review the claim carefully and make sure that the debt hasn’t expired (time-barred debt) and the debt amount is accurate. 
• Negotiate a settlement: Sometimes, debt collectors are open to settling the debt for less than the full amount owed. Negotiating a settlement can help you resolve the case faster and potentially save you money.
• Do nothing: If you’re past the statute of limitations and the collection account is about to fall off your credit report, then the best action is inaction. 

If you think you’re debt collector is doing something illegal, you can report problems to: 

• The Federal Trade Commission 
• The Consumer Financial Protection Bureau 
• The attorney general’s office for your state 

How Debt Collection Affects Your Credit

A debt collection lawsuit will likely show up on your credit report and can stay on there for up to seven years. After seven years, this negative mark will automatically fall off your credit report.

Having collection accounts on your report may make it more difficult to receive future credit. If you can get approved for credit, you might face higher interest rates, loan denials, or even higher security deposits for rentals since you’ll be seen as less creditworthy to lenders. 

However, you do have the right to dispute errors on your credit report. If the debt collection lawsuit or judgment is inaccurate, you can file a dispute with your credit bureau or AnnualCreditReport.com to see about having it removed.  

Strategies to Avoid Debt Collections

Let’s face it, dealing with debt collectors is no picnic. Here are some proactive steps you can take to avoid the hassle and stress of debt collector lawsuits altogether:

• Communicate with creditors and collectors: Proactive communication demonstrates your willingness to resolve the debt. If you’re struggling to make payments, explain your situation and try to negotiate a realistic payment plan you can afford.
• Try credit counseling: Consider seeking help from nonprofit credit counseling agencies. These organizations offer free or low-cost financial counseling and debt management plans. They can help you get out of debt, create a budget, negotiate with creditors, and develop a strategy to repay your debts.
• Debt consolidation: Imagine juggling multiple credit card bills. Debt consolidation lets you combine them into one loan with (hopefully) a lower interest rate. This makes managing your debt easier (fewer bills) and potentially saves you money in the long run.

Take Control of Debt With a Debt Consolidation Loan 

Armed with the knowledge of the statute of limitations, your rights under the Fair Debt Collection Practices Act, and effective debt management strategies, you can navigate debt collector situations with more confidence. Credit.com offers a variety of resources, like debt consolidation loans, to help you manage your finances and work on your credit health. 

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