The statute of limitations is, according to Cornell University legal information institute, a statute applying to both civil and criminal cases which requires suit or prosecution within a prescribed period of time following the civil injury or the date of the crime.
In layman credit-debt terms, the statute of limitations or SOL is a time limit for creditor to file a lawsuit to recover delinquent debt. This period starts when debtor becomes delinquent. Even if the SOL on a particular debt has expired, creditor still can file a lawsuit thru Summons And Complaint, but debtor can dismiss such a lawsuit on technicality of expiration. In layman terms, Summons is a notification that lawsuit has been filed against debtor and Complaint is a petition or pleading on behalf of a plaintiff which is creditor.
Each complaint contains the following:
- name of the court in which action is brought, establishing the proper jurisdiction
- title of the cause of action:
- money due on open account
- money due on promissory note
- money due on contract
- repossession of merchandise
- foreclosure on real estate
- correct legal name of plaintiff and defendant
- concise statement of the facts constituting a cause of action with each allegation distinctly numbered
- demand for the relief sought by plaintiff
There are several types of agreement that are covered by statute of limitation.
Oral Contract - Someone lends you cash but nothing is put on paper. You shake hands and you give your word to repay in whatever terms. Even if this can be difficult to prove, it is still a legally binding agreement.
Written Contract - You borrow money from a bank and it is all nicely documented and signed by you and a bank representative. Car loan is a written contract.
Promissory Note - It is a written contract with obligation to repay loan but promissory note also details terms of this repayment, i.e. number of years you have to repay, interest rate, late payment penalty, etc. Mortgage is likely the most common promissory note.
Open-ended Account - It is a revolving line of credit with varying balances and credit limits. Credit card and home equity line of credit belong to this type.
The Statute Of Limitations only covers lawsuits, and SOL expiration does not affect other types of collection action or reporting of the account to credit bureaus. OUT OF STATUTE debts can still be reported to credit bureaus for the time limits specified in the Fair Credit Reporting Act.
If there has already been a lawsuit resulting in a judgment, that judgment has a separate Statute Of Limitations, which you can find under statute limitations for judgments.
All numbers are years:
| State |
Oral Agreements |
Written Contracts |
Promissory Notes |
Open Accounts |
| Alabama |
6 |
6 |
6 |
3 |
| Alaska |
6 |
6 |
6 |
6 |
| Arizona |
3 |
6 |
5 |
3 |
| Arkansas |
3 |
5 |
6 |
3 |
| California |
2 |
4 |
4 |
4 |
| Colorado |
6 |
6 |
6 |
6 |
| Connecticut |
3 |
6 |
6 |
6 |
| Delaware |
3 |
3 |
6 |
3 |
| D.C. |
3 |
3 |
3 |
3 |
| Florida |
4 |
5 |
5 |
4 |
| Georgia |
4 |
6 |
6 |
4 |
| Hawaii |
6 |
6 |
6 |
6 |
| Idaho |
4 |
5 |
10 |
4 |
| Illinois |
5 |
10 |
6 |
5 |
| Indiana |
6 |
10 |
10 |
6 |
| Iowa |
5 |
10 |
5 |
5 |
| Kansas |
3 |
5 |
5 |
3 |
| Kentucky |
5 |
15 |
15 |
5 |
| Louisiana |
10 |
10 |
10 |
3 |
| Maine |
6 |
6 |
6 |
6 |
| Maryland |
3 |
3 |
6 |
3 |
| Massachusetts |
6 |
6 |
6 |
6 |
| Michigan |
6 |
6 |
6 |
6 |
| Minnesota |
6 |
6 |
6 |
6 |
| Mississippi |
3 |
3 |
3 |
3 |
| Missouri |
5 |
10 |
10 |
5 |
| Montana |
5 |
8 |
8 |
5 |
| Nebraska |
4 |
5 |
6 |
4 |
| Nevada |
4 |
6 |
3 |
4 |
| New Hampshire |
3 |
3 |
6 |
3 |
| New Jersey |
6 |
6 |
6 |
6 |
| New Mexico |
4 |
6 |
6 |
4 |
| New York |
6 |
6 |
6 |
6 |
| North Carolina |
3 |
3 |
5 |
3 |
| North Dakota |
6 |
6 |
6 |
6 |
| Ohio |
6 |
15 |
15 |
- |
| Oklahoma |
3 |
5 |
5 |
3 |
| Oregon |
6 |
6 |
6 |
6 |
| Pennsylvania |
4 |
6 |
4 |
6 |
| Rhode Island |
15 |
15 |
10 |
10 |
| South Carolina |
10 |
10 |
3 |
3 |
| South Dakota |
6 |
6 |
6 |
6 |
| Tennessee |
6 |
6 |
6 |
6 |
| Texas |
4 |
4 |
4 |
4 |
| Utah |
4 |
6 |
6 |
4 |
| Vermont |
6 |
6 |
5 |
6 |
| Virginia |
3 |
5 |
6 |
3 |
| Washington |
3 |
6 |
6 |
3 |
| West Virginia |
5 |
10 |
6 |
5 |
| Wisconsin |
6 |
6 |
10 |
6 |
| Wyoming |
8 |
10 |
10 |
8 |
The information above is believed to be accurate at the time of the creation of this page, and is for reference only. Bad Credit Help doesn’t provide legal advice. If there is lawsuit against you filed or being filed, consult a qualified attorney.
