Statute of Limitations on Debt

by Lynnette Khalfani-Cox, The Money Coach on September 14, 2009

in Credit Cards, Debt


statute of limitations

Consumers often pay off debt for which creditors can no longer seek legal action because the Statute of Limitations has already expired for the account. Consumers pay off these accounts perhaps because the accounts still appear on their credit reports, they fear court action, or they simply don’t know their rights.  There are even cases of “Zombie debt” where agencies are claiming to collect a debt from years ago that one may have already paid off, or never owed in the first place.

Know the Statute of Limitations for your state or the state where a potential creditor is based.  The chart below provides links to various state laws.

STATUTE OF LIMITATIONS ON DEBT; STATE BY STATE

StateOralWrittenPromissoryOpen-ended AccountsState Statute: Open Accounts
AL6663§6-2-37
AR5553§16-56-105
AK6633§09.10.053
AZ3663§12-543
CA2444§337
CO6663§13-80-101
CT3663§52-581
DE3334§2-725
DC3333§12-301
FL4554§95.11
GA4666 **§9-3-25
HI6666HRS 657-1(4)
IA51055§614.5
ID4554§5-222
IL510105735 ILCS 5/13-205
IN610106§34-11-2
KS3653§84-3-118
KY515155§413.120
LA1010103§3-118
ME6666§5-511
MD3363§5-101
MA6666c.260, §2
MI6666§600.5807
MN6666§541.05
MO510105§516.120
MS3333§15-1-29
MT388527-2-202
NC3353§1-52(1)
ND666628-01-16
NE4554§25-206
NH3363382-A:3-118
NJ666325:1-5
NM4664§37-1-4
NV4634NRS 11.190
NY6666§2-213
OH615156§2305.07
OK3553§12-3-95
OR6666§12.080
PA4444§5525
RI10564§6A-2-725
SC3333SEC 15-3-530
SD6666§15-2-13
TN666628-3-109
TX4444§16.004
UT466470-09a
VA35638.01-246
VT6653§3-118
WA3663RCW 4.16.080
WI66106893.43
WV51065§55-2-6
WY810108§1-3-102

** Georgia Court of Appeals came out with a decision on January 24, 2008 in Hill v. American Express that in Georgia the statute of limitations on a credit card is six years after the amount becomes due and payable

Note: This article was first published in September of 2009 and may not be current. We hope to update this article soon.

 


Previous post:

Next post: