Time Frame

• The statute of limitations commences on the day a consumer's debt becomes 180 days delinquent. Statutes vary widely by state, and each state sets different statutes for different types of debt. The statute of limitations for credit card debt, for example, frequently differs from that of a bank loan.
  
  

Features

• In some states, consumers can stop or even reset the statute of limitations by acknowledging ownership of the delinquent debt or making a payment toward the overdue balance.
  
  

Warning

• Some creditors and debt collectors attempt to sue debtors for debts on which the statute of limitations has already run out. An expired statute of limitations makes the debt "time-barred" and is a reasonable court defense against a debt collection lawsuit. If the debtor does not use the expired statute as a defense, the court may award a judgment to the creditor or collection agency.