The full explanation
The period depends on your state, the type of debt and your contract. Some debts, such as federal student loans, have no statute of limitations. A partial payment or acknowledging the debt may restart the clock. If you are sued, it is usually up to you to tell the court the debt is time-barred.
An example
A collector calls Luis about a credit card he stopped paying many years ago. Before sending a small payment, he checks his state's statute of limitations, because a partial payment could restart it.
You will see it in…
- Letters and calls from collectors about old debts
- A lawsuit over an old debt, where you can raise that it is time-barred
- Your credit agreement, which may name the state law that applies
