How Long Are Unpaid Credit Cards Collectable?

State laws regulate how long creditors can sue for unpaid debts.

A credit card company or collection agency can collect an unpaid credit card debt at any time if the debtor makes a payment voluntarily. A creditor has a limited amount of time, however, during which it may legally force the individual to satisfy the unpaid debt.

Time Frame

Creditors must abide by the debtor's state's statute of limitations when filing lawsuits. If, for example, the statute of limitations on debt collection is six years, a creditor cannot legally file a lawsuit against a debtor for a debt that is seven years old.

Features

An expired statute of limitations doesn't stop all lawsuits. According to MSN Money, some creditors will sue on expired debts in the hope that the debtor won't respond to the summons. If the debtor does not acknowledge the court summons or fails to inform the court of the expired statute of limitations, the creditor may win its lawsuit and seek a bank account or wage garnishment.

Warning

Once the statute of limitations expires on a credit card debt, the debtor can inadvertently restart the clock by making a payment on the account--giving the creditor additional time to file a lawsuit.

References

• MSN Money: Is There a Statute of Limitation on Debt?
• NOLO: Time-Barred Debts

Resources

• CreditCards.com: Statute of Limitations for Credit Card Debt by State
• U.S. Department of the Treasury: Credit Card Payment and Late Payment Answers