Old Debt: Statutes of Limitations and Zombie Collectors

How long is the statute in your state?

Statutes vary by state and by debt type. Examples: California (4 years on written contracts), Texas (4 years), New York (3 years for credit card debt as of 2022 CPLR amendment), Florida (5 years), Ohio (6 years), and Kentucky (10 years on written contracts). Always look up your specific state and the specific type of debt.

The clock typically starts on the date of last payment or the date the account first went delinquent and was never brought current. Some states use the date of charge-off instead. The exact trigger date matters because it determines whether a debt is still enforceable.

What restarts the clock

This is the most important rule and the one that traps the most consumers. In most states, any of the following can restart the statute of limitations from zero.

• Making any payment, even $5.
• Signing a new payment plan.
• Acknowledging the debt in writing (even an email saying 'I'll pay when I can').
• Charging anything new on a credit account that has gone dormant.
• In a few states, even a verbal acknowledgement on a recorded call.

What to do if you are sued on old debt

Do not ignore it. Show up to court. The statute of limitations is an 'affirmative defense', meaning you must raise it. If you do not, the court can issue a default judgment against you even on a time-barred debt. Always answer with both a denial and a statute of limitations defense.

Default judgments are aggressive collection tools. They can lead to wage garnishment, bank account levies, and liens on real property, and most state judgments are enforceable for 10 to 20 years and renewable. A 30-minute court appearance to file a written answer is worth weeks of post-judgment problems.

How to handle calls about old debt

Send a debt validation letter first. Do not make any payment until you confirm the debt is within the statute and is actually yours. If the debt is time-barred, you can request the collector cease contact in writing.

Some collectors will offer 'a great deal' on an old debt specifically to extract a small payment that restarts the clock. Recognize this tactic and decline. If you genuinely want to settle a time-barred debt for moral reasons, get a written agreement that the payment is a full and final settlement and that the debt cannot be revived.

Reporting limits are different from collection limits

The 7-year credit reporting period under the Fair Credit Reporting Act is independent of the state statute of limitations. A debt can be off your credit report (after 7 years) but still legally collectible if your state's statute is longer. Conversely, a debt can be time-barred but still reported until the 7-year FCRA window closes. Check both.