Understanding whether a collector can still sue you for an old debt is one of the most powerful defenses you can use. The key is knowing how the statute of limitations works—and how to apply it correctly. In this guide, we break down what the statute of limitations means, when the clock starts, and how it affects lawsuits, collections, and your next steps.
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What Is the Statute of Limitations on Debt?
The statute of limitations (SOL) is the legal deadline for creditors or debt buyers to sue you for repayment. Once this period expires, the debt becomes “time-barred,” and you can use the statute of limitations as a defense in court.
SOL exists because evidence becomes less reliable over time, and it becomes unfair to allow lawsuits indefinitely. Each state sets different limits—some as short as three years, others as long as ten.
A few typical patterns include:
- Written contracts often have longer SOL periods
- Oral agreements usually have shorter timelines
- Credit cards, medical debt, and personal loans may each follow different rules within the same state
The SOL generally begins on the date of your last payment, not the date you first missed a payment. Even a small payment may restart the clock in many states, which makes it critical to understand your timeline before taking action.
Because rules vary significantly, confirming your state’s specific laws is essential.
You Must Respond to a Lawsuit Even If the Deadline Has Passed
A common mistake is assuming that an expired statute of limitations means you can safely ignore a lawsuit. This is false and can be financially devastating.
Courts do not automatically check whether the SOL has expired. You must:
- File an Answer
- Raise the statute of limitations as an affirmative defense
If you ignore the lawsuit, the collector will almost certainly win a default judgment—even if the debt is legally too old to collect through the courts. Filing a proper Answer is the only way to use the expired SOL to your advantage.
DebtAegis can help you generate a customized Answer so you don’t lose automatically.
Does Selling the Debt Restart the Statute of Limitations?
No. Selling or transferring a debt does not reset the statute of limitations.
If your last payment was in 2019 and your state has a four-year SOL, a debt buyer who purchases the debt in 2025 cannot sue successfully just because they are the new owner.
However, making a payment may restart the SOL in many states. Even a small “good-faith” payment could give collectors a fresh window to sue you, so always check before paying.
Different States Have Different Deadlines
Statute of limitations laws vary widely. Examples include:
- Texas medical debt: 4 years
- California personal loans: 4–6 years
- Louisiana written contracts: up to 10 years
- Louisiana personal loans: often around 3 years
These differences matter significantly. A debt that is time-barred in one state may still be actionable in another.
DebtAegis will soon offer a state-by-state reference so you can identify the deadline quickly.
Collectors May Still Contact You About Time-Barred Debts
Even if the statute of limitations has expired, collectors may still send letters, call, or text asking for voluntary payment. What they cannot do is file a lawsuit and win.
In these cases, you may send a cease-and-desist letter requiring them to stop contacting you. Under federal law, they must comply except for limited, legally required notices.
Example: Using the Statute of Limitations to Your Advantage
Sarah stopped paying her credit card bill in 2019. In 2025, a collector began calling about the $3,000 balance. She lives in a state with a four-year SOL on credit card debt.
Because more than four years have passed:
- The debt is time-barred
- She may send a cease and desist request
- If the collector sues, she can file an Answer raising SOL as a defense
- The lawsuit would likely be dismissed
Knowing your rights helps you avoid being pressured into payments you do not legally owe.
What If You Moved to Another State?
If you incurred the debt in one state but now live in another, the statute of limitations often depends on the state specified in your original credit agreement. Many contracts include “choice of law” clauses stating which state’s rules apply.
If your contract does not specify, courts may look to the state where the debt was originally created. This can result in different outcomes depending on the situation.
When the rules are unclear, reviewing your credit contract or consulting a consumer attorney may be helpful.
How to Protect Yourself If You Think the Debt Is Too Old
If you’re being contacted about an old debt, take these steps:
1. Confirm if the statute of limitations has expired
Check your last payment date and your state’s rules.
2. Always respond to lawsuits
Do not ignore a Summons under any circumstances.
DebtAegis can help you create a legally sound Answer that includes all relevant defenses, including SOL.
3. Avoid restarting the clock with payments
Do not make payments until you know how they will affect the SOL.
4. Consider settling debts that are still within the SOL
If the SOL has not expired, negotiating a settlement may help you avoid a lawsuit altogether.
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Get Trusted Guidance When You Need It
Understanding the statute of limitations is only the first step. If you’re facing a lawsuit or persistent collection attempts, taking action quickly is essential.
DebtAegis helps you:
- Generate a court-ready Answer
- Protect your rights in the legal process
- Avoid losing your case automatically
- Navigate your state’s rules confidently
Visit https://debtaegis.com/pricing/ to get started.