A debt collector can legally pursue payment for 6 years. After 6 years without payment, the debt is ‘statute barred’. Then, creditors cannot legally pursue through courts.
The time limit also depends on type of debt and location. For most states, it is 3 to 6 years. As long as no action is taken, the statute of limitations continues running.
Before deciding, know options to avoid mistakes. Understand how long collectors can pursue debts and whether you can be forced to pay.
Collection and Credit Reporting Limits
In most states, collectors can contact about outstanding debts forever. However, states limit how long collectors can sue to force payment. This is the statute of limitations, ranging 3 to 20 years depending on state and debt type.
A collection account, paid or unpaid, stays on credit reports for 7 years from first missed payment. In rare cases, deleted items reappear.
When Debts Become Unenforceable
Should I pay a debt that is 7 years old? If you have a collection account less than seven years old, you should still pay it off if it’s within the statute of limitations. First, a creditor can bring legal action, including garnishing your salary or bank account, until the statute of limitations expires. The statute of limitations depends on the debt type and location, but for most states, it’s typically three to six years. In California, there’s generally a four-year limit for filing a lawsuit to collect a debt based on a written agreement.
While an account in collection can significantly negatively impact your credit, it won’t stay on your credit reports forever. Once the statute of limitations passes, the debt is considered time-barred. The creditor can sue but the case will be dismissed. The lender or agency can still try to collect the debt by contacting you.
Old debt will likely affect your credit reports for seven years after first marked delinquent. Debt collection agencies can legally sue you until the statute of limitations runs out, typically three to six years depending on location.
Time-barred debt is typically past the statute of limitations and cannot be collected. Certain negative items like judgments, unpaid tax liens, and Chapter 7 bankruptcy can remain on your credit report for over seven years. Most negative items simply fall off your credit report automatically after seven years from the first missed payment. The actual debt doesn’t get erased, particularly if unpaid.
You might not have to pay a debt if it’s been over six years with no payment or contact with the creditor. Closed accounts paid as agreed stay on credit reports for up to 10 years. A debt theoretically still exists after becoming unenforceable; some may still try to collect.
Never pay a collection agency without checking if your debt is time-barred. Sometimes, paying an old debt can restart the statute of limitations, allowing future lawsuits. Not paying time-barred debt is often the safest option.
Debt Strategies and Rights
Each state has its own statute of limitations on debt. After it expires, a collector can’t sue but can still try to collect. If you have an old unpaid credit card debt and are getting collector calls, know your rights.
You should reduce debt faster by earning more. Getting independent advice related to your circumstances is recommended.