Statute of limitations by state
Statute of limitations on debt: how it works, with 6 states verified.
If your business is owed money, the statute of limitations decides how long you have to sue. This guide explains how it works and lists periods for the 6 states we've checked against official state statute text, with links so you can verify them.
Updated October 17, 2026 · CollectionPlacement editorial team
It is important for creditors to know the time limits on collecting what they're owed. The statute of limitations on debt is one of the most important. This page gives an overview of what it is, how it works, and the periods in states we have verified against official sources. For a plain-English explanation, see our guide can you collect on old debt?
1. Understanding the statute of limitations on debt
The statute of limitations on debt is a legal concept that limits the amount of time a creditor has to take legal action against a debtor to collect a debt. The time limit varies depending on the type of debt and the state whose law applies. Once the statute of limitations has expired, the creditor generally can no longer successfully sue to collect the debt.
2. How the statute of limitations works
The clock generally starts when the cause of action accrues, which for most unpaid debts is around the date the debtor defaulted, such as a missed payment. Some statutes set their own accrual rule; Ohio, for example, says a consumer-transaction claim accrues thirty days after the last charge or payment.
The length of time varies by state and by the type of debt. Among the six states verified below, contract periods range from 3 years (North Carolina) to 6 years (Arizona, Michigan, Nevada, Ohio and Washington for written contracts). It can also be "tolled," or paused, in certain circumstances, and bankruptcy filings bring their own rules.
3. Exceptions to the statute of limitations
There are some exceptions. In many states, if the debtor acknowledges the debt in writing or makes a partial payment, the limitation period may restart. How this works differs by state. Some debts are treated differently altogether; under 20 U.S.C. §1091a(a), federal student loans and grant overpayments under Title IV of the Higher Education Act can be collected by the government, guaranty agencies and participating schools without a time limit. Private student loans follow ordinary state limitation periods. And under the CFPB's Regulation F, 12 CFR 1006.26(b), a debt collector may not sue or threaten to sue to collect a time-barred consumer debt, except that filing a proof of claim in bankruptcy is not covered by the ban.
4. Periods in states we have verified
These entries are taken from the official legislature or code website for each state (checked October 2026). Other statutes and contract terms can change the result, and choice-of-law questions arise when the debtor is in another state.
| State | Written contracts | Oral contracts / open accounts | Source (official) |
|---|---|---|---|
| Arizona | 6 years: debt on a written contract executed in Arizona, or on a credit card | 3 years: oral debt; stated or open accounts (with a merchant-to-merchant exception) | A.R.S. § 12-548, A.R.S. § 12-543 |
| Michigan | 6 years: breach of contract not covered by a more specific subsection | Same general 6-year contract period | MCL 600.5807(9) |
| Nevada | 6 years: contract founded on a written instrument; 6 years on a judgment | 4 years: open account for goods sold and delivered; contract not founded on a written instrument | NRS 11.190(1), NRS 11.190(2) |
| North Carolina | 3 years: contract, express or implied (unless another section applies) | Same 3-year period | N.C.G.S. § 1-52 |
| Ohio | 6 years: written contract (§ 2305.06). Consumer transactions: 6 years (§ 2305.07(C)) | 4 years: contract not in writing (§ 2305.07(A)) | R.C. 2305.06, R.C. 2305.07 |
| Washington | 6 years: written contract, and an account receivable incurred in the ordinary course of business | 3 years: contract not in writing (except accounts receivable) | RCW 4.16.040, RCW 4.16.080 |
Other states: we haven't yet verified other states against official text, so we don't list figures for them. Our state pages give general orientation, with uncertain entries marked "verify". Ohio's §2305.06 was amended effective Sept. 23, 2026 (SB 219) to add an oil-and-gas lease exception. The 6-year written-contract period is unchanged.
State notes: Arizona's §12-548(B) applies Arizona's 6-year period when it conflicts with another state's period, and credit-card debt has its own 6-year category. North Carolina's §58-70-115(4) bars collection agencies that are, or act for, debt buyers from suing, arbitrating or otherwise attempting to collect debt they know or reasonably should know is time-barred, which is stricter than Reg F. Subsections (5)–(6) add documentation and pre-suit notice requirements. Washington's RCW 19.16.250(23) bars licensees from suing or arbitrating claims they know or should know are time-barred.
Conclusion
Understanding the statute of limitations is an important part of managing your receivables. Older accounts are generally harder to collect, and if a deadline may be close, talk to a collection attorney promptly. If an account is approaching its limit, a collection attorney can tell you whether to file. To place it, get matched free.
Related
- B2B debt collection guide
- Debt collection agency licensing
- Debt collection laws for businesses
- Statute of limitations by state
Not legal advice. This page is general information, not legal advice, and laws vary by state and change over time. CollectionPlacement is a referral service, not a law firm or collection agency. Consult a licensed attorney about your situation.
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Frequently asked questions
What is the statute of limitations on debt?
A legal time limit on how long a creditor has to sue to collect a debt. It varies by state and type of debt.
How does the statute of limitations work?
It generally starts when the claim accrues, usually around the default date, and runs for the period set by the applicable state statute. It can be paused or, in many states, restarted.
Are there exceptions?
Yes. In many states a written acknowledgment or partial payment can restart the period, and some debts, like federal student loans, are treated differently.
What happens when the statute of limitations expires?
The creditor generally can no longer successfully sue. Debt collectors may not sue or threaten suit on time-barred consumer debt.
What should I do if I have questions about a specific account?
Ask an attorney licensed in the relevant state. The deadline depends on the facts and the governing law.
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