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Old Debts: Limitation Periods, Bankruptcy Discharges, and Credit Reporting

This guide presents selected U.S. government consumer education from CFPB. References to “we” or “us” in the source material refer to the issuing agency. Source dates and links appear below.

Can debt collectors collect a debt that’s several years old?

A debt doesn’t generally expire or disappear until its paid, but in many states, there may be a time limit on how long creditors or debt collectors can use legal action to collect a debt.

In many states, statutes of limitations are in place to prevent creditors and debt collectors from using legal action to collect on an older debt. Some debts, though, such as federal student loans don’t have a statute of limitations.

Most states or jurisdictions have statutes of limitations between three and six years for debts, but some may be longer. This may also vary depending, for instance, on the:

  • Type of debt
  • State where you live
  • State law named in your credit agreement

If you’re sued by a debt collector and the debt is too old, you may have a defense to the lawsuit. In addition, you may have a claim against the collector for violating the Fair Debt Collection Practices Act, which prohibits suing or threatening to sue for a time-barred debt.

When does the statute of limitations period begin?

In some states, the statute of limitations period begins once a required payment is missed. In other states, the period of time counts from when the most recent payment was made, even if that payment was made during collection.

Keep in mind that making a partial payment or acknowledging you owe an old debt, even after the statute of limitations expired, may restart the time period. It may also be affected by terms in the contract with the creditor or if you moved to a state where the laws differ.

To calculate the statute of limitations for your debt, you may want to consult with a lawyer.

Can a debt collector collect debts or sue me after the statute of limitations expires?

In most states, debt collectors can still attempt to collect debts after the statute of limitations expires. They can try to get you to pay the debt by sending you letters or calling you as long as they do not violate the law when doing so. They can’t sue or threaten to sue you if the statute of limitations has passed. However, this prohibition doesn’t extend to proofs of claim that are filed in connection with a bankruptcy proceeding.

A lawsuit filed after the statute of limitations expires is a violation of the Fair Debt Collection Practices Act, but a court may still award a judgment against you if you don’t show up and raise the statute of limitations as a defense. Ordinarily, it’s the responsibility of the person being sued to point out that the statute of limitations has expired. For example, you may need to show that there has been no activity on the account for a certain number of years. Again, if you have questions about the law, consider consulting an attorney.

If you're having trouble with debt collection, you can submit a complaint with the CFPB.

Can a debt collector try to collect on a debt that was discharged in bankruptcy?

Debt collectors cannot try to collect on debts that were discharged in bankruptcy. Also, if you file for bankruptcy, debt collectors are not allowed to continue collection activities while the bankruptcy case is pending in court.

If a debt collector calls and you have filed for bankruptcy, tell the debt collector. You should also be sure the debt is in your list of debts and creditors filed with the bankruptcy court. If you are represented by an attorney for your bankruptcy, you should let the debt collector know this. Then the debt collector must contact the attorney instead of you while the bankruptcy is pending. You should also let your attorney know that you have been contacted by a debt collector. Once the debt is discharged by the bankruptcy court, the discharge permanently bars the creditor or debt collector from collection of the debt. Filing for bankruptcy can have long-term consequences so consult a bankruptcy attorney to learn more.

It is important to recognize that lenders often have a right to repossess the collateral. For example, auto loan lenders generally have a right to repossess the vehicle after default. If so, then the lender may still have that right after the bankruptcy discharge, if that debt is unpaid. If you have a bankruptcy lawyer, you might want to get advice from your lawyer about repossession.

We have prepared sample letters that a consumer could use to respond to a debt collector who is trying to collect a debt that you no longer owe due to a bankruptcy discharge. Additionally, the sample letters may help you to get information, stop or limit any further communication, or protect some of your rights.

When can a debt collector report my debt to a credit reporting company?

Debt collectors must take certain steps before reporting a debt to a credit reporting company. After the debt collector has followed the rules about how to contact you, they can report your debt to a credit reporting company, as long as they follow other laws about credit reporting.

Before a debt collector can report your debt to a credit reporting company, the debt collector must follow the rules for contacting you.

What ways can a debt collector use to notify me about a debt?

A debt collector must use at least one of the following ways to contact you about your debt before it sends information about the debt to a credit reporting company:

  • Speak with you in person
  • Speak with you by telephone
  • Mail you a letter and wait a reasonable amount of time (generally 14 days) for a notice that the letter wasn’t delivered
  • Send you an electronic communication and wait a reasonable amount of time (generally 14 days) for a notice that the message wasn’t delivered

Also, if you have received a validation notice about a debt from a debt collector, it means they have satisfied their requirement to contact you and, in general, can begin to report the debt to credit reporting companies.

Whether or not you have a debt in collection, it’s important to frequently check your credit reports for accuracy. If you think a debt collector has improperly reported a debt to a credit reporting company without meeting their obligations under the Fair Debt Collection Practices Act (FDCPA), you can submit a complaint with the CFPB online or by calling (855) 411-CFPB (2372).

Sources and publication details

The federal agency source text is U.S. government work in the public domain. Fynoptic selected, adapted, and formatted it for this guide. No agency endorsement is implied. Follow the linked sources for current program details and the rules applicable to your circumstances.

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