There is a time limit on how long a creditor has to file a lawsuit against you in court to persuade you to transfer the money you owe them; just Press The Restart Button. A debt past its statute of limitations date can no longer be lawfully enforced unless the statute of limits is extended beyond its original expiration date.

What Is The Time Limit For Filing A Lawsuit?

Your place of residence and the state where the debt was accrued will determine the same statute of limitations that apply to your case. Most states use a limitation period of three to six years, so it’s better to contact an attorney specializing in bankruptcy law in your area.

In most cases, the limitation period begins to run when there is no action on the account for a certain amount of time. You might have to wait a little longer, depending on what you’ve been up to recently. As long as you don’t take immediate steps on your account, the limitation period will continue to run.

What Is Capable Of Resetting The Limitations Period?

Even if done by mistake, certain activities might reactivate a dormant account’s limitation period on unpaid debt. Knowing what acts can revive old debt is critical if you’re trying to approach the statute of limitations. Any time you promise to pay and even recognize that you have a debt account, you resurrect the debt. Here are just a few examples:

  • Any amount of money can be paid.
  • Establishing a payment schedule.
  • The decision to accept a settlement proposal
  • Making a deal to pay off a portion of the debt
  • Acknowledging your financial obligations
  • Adding another transaction to the same payment account

If the limitation period clock is restarted, it begins at zero and covers the entire amount. This new window of opportunity allows the creditor or debt collector extra time using the courts to compel you to make good on your debt.

Credit Reporting And Statute Of Limitations

The statute of limitations does not affect the time limit for filing a credit report. There’s no guarantee that your credit report will stay up with the limitation period for your debt. There is no way to restart the seven years for damaging information on your credit report, even if you make payment. You won’t be able to track any verbal arrangements you reached with such a creditor and debt collector on your credit report.

Some states have statutes of limitations that are significantly longer than the national average of six years or fewer. Some debts may be removed from your credit file before the statute of limitations, depending on your residence. After the case is dismissed, some debts may still appear on your credit record.

A collection agency may inform you that your debt is no longer collectible due to time. You have the right to inquire if they do not provide this information. The debt collector doesn’t need to respond, but if they want to reply, they must do so truthfully. It’s a tricky situation since you have to tread carefully when bringing up the subject of your debt to avoid appearing ungrateful.


Distinct states have different statutes of limitations, and different types of accounts can be treated differently by various governments. In some states, written contracts may take longer to collect from debtors than credit card debts. For the specific debt you’re concerned about, check your state statutes.