In the past, certain actions like making a payment or acknowledging that you owe the debt could restart the clock on the limitations period. This created a problem where the statute of limitations could be constantly restarted. The issue is often referred to as “zombie debt.”
In 2019, changes in the law aimed to protect people from zombie debt. Section 392.207 of the Texas Finance Code no longer allows the statute of limitations to be revived by a payment on the debt, a reaffirmation of the debt, or any other activity.
The law also added new restrictions for debt buyers (defined as a person who purchases a consumer’s debt from a creditor):
Debt doesn’t just disappear if you ignore it long enough. Creditors and debt collectors can potentially try to collect on debts even after many years have passed. However, there are important limits on how long they can use the court system to collect older debts. Understanding the statute of limitations is key to knowing your rights when it comes to older debts.
The Statute of Limitations Limits How Long Debt Can Be Collected Through The Courts
The statute of limitations is the time period set by state laws that limits how long after a debt becomes delinquent that a creditor or debt collector can sue you to collect. This time limit varies by state, but ranges from 3 to 10 years for most common debt types like credit cards, medical bills, personal loans etc.
The statute of limitations time period generally begins from the date of your first missed payment, or when you defaulted on the debt. Making a payment or even acknowledging the debt verbally can potentially “reset the clock” on the statute of limitations in some states.
Once the statute of limitations expires, creditors and debt collectors lose the ability to sue you for the debt, but that doesn’t necessarily erase the debt itself You still technically owe the money, but the creditor has lost its most powerful tool to force you to pay
Collectors Can Still Attempt To Collect Expired Debt Without Suing
Importantly, creditors and collectors can still attempt to collect on time-barred debts through letters, calls, settlement offers etc. They just cannot sue or threaten to sue once the statute of limitations runs out.
The Fair Debt Collection Practices Act does prohibit collectors from suing or threatening to sue on expired debt. However, the onus is still generally on the consumer to prove the statute of limitations has expired if a suit is wrongly filed.
That’s why it’s crucial to understand your state’s statutes of limitations if you are contacted about older debts. Knowing the laws can help you determine if the collector is violating them or not.
Key Things To Know About Statutes of Limitations:
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Time periods vary significantly by state – From as little as 3 years in some states to up to 15 years in others. Know your state’s limits.
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Different rules for different debts – Time periods can vary based on the type of debt. Government student loans for example may have no statute of limitations.
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Making a payment can “reset the clock” – In some states even a small payment can essentially restart the statute of limitations.
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Judgments have separate time limits – If a creditor sues and wins a judgment before the statute runs out, that judgment has its own timeline to collect, which may be extended.
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Federal laws also prohibit suits on expired debt – The Fair Debt Collection Practices Act bars collectors from suing or threatening to sue on time-barred debts.
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Collectors can still attempt to collect without suing – Letters, calls, and settlement offers don’t necessarily violate the law on expired debt. Only actual or threatened lawsuits do.
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Burden of proof is on the consumer – If an expired debt suit is wrongly filed, you’d have to raise the statute of limitations defense yourself in court.
What To Do If You’re Facing Old Debts
If you are contacted about older debts, here are some tips on how to handle it:
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Don’t ignore it – Open the letters and talk to collectors to understand what debt they say you owe. Ignoring it won’t make it go away.
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Ask for validation – Collectors must verify the debt if you ask. Make sure it is actually yours and the amounts are correct.
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Be careful talking about it – Don’t make a payment or say anything that could reset the statute of limitations. In many states, it doesn’t take much.
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Know your state’s laws – Statutes of limitations rules differ in each state. Make sure you look up the laws where you live.
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Consult a lawyer – If you are sued on old debts or want to consider bankruptcy, talking to a lawyer can help protect your rights.
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Don’t panic – Old debts can be stressful but knowing your rights gives you power. Take a breath and deal with it calmly.
While unpaid debts generally won’t just disappear over time, statutes of limitations prevent collectors from using the courts to collect on really old debts. Learn the rules in your state, don’t panic, and consult a professional if you need guidance on exercising your rights. With the right information, old debts don’t need to be scary.
What is time-barred debt?
Texas law gives someone 4 years to bring a lawsuit for unpaid debt. This time period is commonly referred to as the statute of limitations.
Once the time period is up, a person is prohibited from filing suit to recover the debt. This means the debt is time-barred.
You still owe time-barred debts, but creditors and debt buyers lose their most powerful way of collecting — a lawsuit.
In the past, certain actions like making a payment or acknowledging that you owe the debt could restart the clock on the limitations period. This created a problem where the statute of limitations could be constantly restarted. The issue is often referred to as “zombie debt.”
In 2019, changes in the law aimed to protect people from zombie debt. Section 392.207 of the Texas Finance Code no longer allows the statute of limitations to be revived by a payment on the debt, a reaffirmation of the debt, or any other activity.
The law also added new restrictions for debt buyers (defined as a person who purchases a consumer’s debt from a creditor):
- Debt buyers are prohibited from suing to try to collect the debt after the statute of limitations has expired. This is true even if a payment is made on the debt.
- Debt buyers must provide written notice if they are taking actions past the limitations period..
- Section 16.004 of the Texas Civil Practice and Remedies CodeThe statute of limitations on debt in Texas is four years.
- Section 392.307 of the Texas Finance CodeThis section of the law, introduced in 2019, states that a payment on the debt (or any other activity) does not restart the clock on the statute of limitations for debt buyers. It also requires that debt buyers provide written notice to a consumer if the limitations period has expired.
- Title 12, Section 1006.26 of the Code of Federal RegulationsNew rules from the federal Consumer Financial Protection Bureau prevent debt collectors from suing or threatening to sue over time-barred debts. “Debt collectors” in this code are defined in section 1006.2(i) and can include the original creditor if they are using a different name.
- What is a statute of limitations on a debt?This page from the Consumer Financial Protection Bureau explains the concept of the statute of limitations and how it relates to debt.
- What is Time-Barred Debt?This page explains the concept of “time-barred debts” and suggests options for dealing with a creditor, third-party debt collector, or debt buyer trying to collect them.
- Debt Scavengers and Zombie DebtUnscrupulous creditors, third-party debt collectors, or debt buyers will try to intimidate you into paying debts that are past the statute of limitations. Read this page from Nolo to learn your rights when it comes to these old debts.
- Time-Barred Debts (TexasLawHelp.org)This guide answers frequently asked questions about time-barred debts.
How long can a creditor collect an old debt?
FAQ
How long before a debt is uncollectible?
Can you collect on a debt that is over 7 years old?
The statute of limitations is the legal time limit for filing a lawsuit to collect payment on a debt. This period varies by state and type of debt — and it typically ranges from three to six years, though some states allow up to 15 years for certain types of debt.
What happens to debt after 8 years?
Debts you’re not responsible for
You might not have to pay a debt if: it’s been 6 years or more since you made a payment or were in contact with the creditor. there was a problem when you signed the agreement, for example if you were pressured into signing it or the agreement wasn’t clear.
Can debt collectors collect debt from 10 years ago?
Debt doesn’t expire, but states have statutes of limitations that restrict how long a collector can pursue you for repayment. Your old debt won’t expire or vanish, but there are limitations on how long creditors can pursue it. These time limits vary by state, typically ranging from a few years to a decade.May 8, 2025
Can a debt collector pursue old debt if the Statute of limitations expired?
Debt collectors can pursue old debt even after the statute of limitations has expired, but they can no longer threaten legal action. However, once the statute of limitations has expired, you can send a cease-and-desist letter to the debt collector to order them to stop contacting you.
Can a debt collector collect on old credit card debt?
However, in many places, debt collectors can still try to collect on old debts beyond the expiration of the statute of limitations. If you have an old credit card debt that you haven’t paid off — or if you’re currently getting calls from a debt collector — here’s what you need to know. How Does Debt Collection Work?
How long can a debt collector keep a collection account?
Collection accounts can remain on your report for seven years and 180 days from the original delinquency. Depending on the type of account and your location, this can be more than or less than the statute of limitations. How Long Can a Debt Collector Legally Pursue Old Debt?
How long can a debt collector Sue you for unpaid debt?
The statute of limitations is a law that limits how long debt collectors can legally sue consumers for unpaid debt. The statute of limitations on debt varies by state and type of debt, ranging from three years to as long as 15 years.
How long can a creditor pursue a debt?
A creditor can pursue debts from two to 20 years based on the state’s statute of limitations. The statute of limitations’ timeline starts the date you made the last payment. Be aware that creditors may argue in court that the laws from the debt’s state of origin should apply instead of the state you currently live in.
Can you sue a debt collector if it is too old?
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?