How long can a company legally try to collect a debt?

TLDR: Each state sets a Statute of Limitation (essentially, a time limit) for how long you have to collect a debt. Scroll down to see the time limit for your state.

Time Limits for Debt Collection

Payment Resolution Partners is highly regarded as one of the best commercial debt collection agencies in the country because we stay current on important government and industry regulations, which can make the difference between successfully collecting a debt, or not.

One very important regulation is the Statute of Limitations for Debt Collection.

Clients often bring us debts that are 2 years past due and older, and their first question is: How long do we have before a debt is uncollectible?

We collect debts more than 2 years old all the time! However, the older a debt gets, the harder it becomes to collect – and there is a point where it’s virtually uncollectible.

So here’s exactly what you need to know to make sure you don’t wait too long and miss the collection window…

Debt collectors can pursue a debt indefinitely.

That said, each state sets a statute of limitations (SOL) for how long you have to collect a debt. Once this time limit is up, neither the creditor (you) or the collection agency (us) can take legal action to recover the debt, or even threaten legal action. That’s right, you can’t even bluff that you’re going to sue them once you’re outside the SOL limits.

The good news is, most debtors (your customer) don’t know about this rule. So as long as you don’t threaten to sue, you can still try to request payment. If they somehow find out there’s no bite behind your bark, it’s almost certainly a lost cause.

One important exception! The time limit resets anytime a payment is made, judgement is awarded, or the debtor provides a written promise to pay (like an email saying “I’ll get this paid next week.”).

Generally though – there’s no good reason a customer should be even 3 months past due without at least offering a partial payment. We generally suggest that if you’re at 60 days past due and there’s no clear plan to pay, it’s time to send it to collections. As long as the collection agency you hire takes a careful approach and doesn’t come on too aggressive, you can get the debt collected without losing your customer or making them feel bad.

Different SOLs based on the type of sale.

Oral Contract is a verbal agreement.
Written Contract most often pertains to services, which would have some sort of service agreement.
Contracts for Sale most often pertains to purchase of goods.
Judgement is a judgment by a court of law.

 

Statute of Limitations by State

Alabama
Oral Contract: 6 years
Written Contract: 6 years
Contracts for Sale (UCC): 4 years
Judgment: 20 years

Alaska
Oral Contract: 3 years
Written Contract: 3 years
Contracts for Sale (UCC): 4 years
Judgment: 10 years

Arizona
Oral Contract: 3 years
Written Contract: 6 years
Contracts for Sale (UCC): 4 years
Judgment: 5 years (renewable)

Arkansas
Oral Contract: 3 years
Written Contract: 5 years
Contracts for Sale (UCC): 4 years
Judgment: 10 years

California
Oral Contract: 2 years
Written Contract: 4 years
Contracts for Sale (UCC): 4 years
Judgment: 10 years (renewable)

Colorado
Oral Contract: 6 years
Written Contract: 6 years
Contracts for Sale (UCC): 4 years
Judgment: 6 years (renewable)

Connecticut
Oral Contract: 3 years
Written Contract: 6 years
Contracts for Sale (UCC): 4 years
Judgment: 20 years

Delaware
Oral Contract: 3 years
Written Contract: 3 years
Contracts for Sale (UCC): 4 years
Judgment: No limitation

Florida
Oral Contract: 4 years
Written Contract: 5 years
Contracts for Sale (UCC): 4 years
Judgment: 20 years

Georgia
Oral Contract: 4 years
Written Contract: 6 years
Contracts for Sale (UCC): 4 years
Judgment: 7 years (renewable)

Hawaii
Oral Contract: 6 years
Written Contract: 6 years
Contracts for Sale (UCC): 4 years
Judgment: 10 years (renewable)

Idaho
Oral Contract: 4 years
Written Contract: 5 years
Contracts for Sale (UCC): 4 years
Judgment: 5 years (renewable)

Illinois
Oral Contract: 5 years
Written Contract: 10 years
Contracts for Sale (UCC): 4 years
Judgment: 20 years

Indiana
Oral Contract: 6 years
Written Contract: 10 years
Contracts for Sale (UCC): 4 years
Judgment: 10 years (renewable)

Iowa
Oral Contract: 5 years
Written Contract: 10 years
Contracts for Sale (UCC): 4 years
Judgment: 20 years

Kansas
Oral Contract: 3 years
Written Contract: 5 years
Contracts for Sale (UCC): 4 years
Judgment: 5 years (renewable)

Kentucky
Oral Contract: 5 years
Written Contract: 10 or 15 years (depending on execution date)
Contracts for Sale (UCC): 4 years
Judgment: 15 years

Louisiana
Oral Contract: 10 years
Written Contract: 10 years
Contracts for Sale (UCC): 4 years
Judgment: 10 years

Maine
Oral Contract: 6 years
Written Contract: 6 years
Contracts for Sale (UCC): 4 years
Judgment: 20 years

Maryland
Oral Contract: 3 years
Written Contract: 3 years
Contracts for Sale (UCC): 4 years
Judgment: 12 years

Massachusetts
Oral Contract: 6 years
Written Contract: 6 years
Contracts for Sale (UCC): 4 years
Judgment: 20 years

Michigan
Oral Contract: 6 years
Written Contract: 6 years
Contracts for Sale (UCC): 4 years
Judgment: 10 years (renewable)

Minnesota
Oral Contract: 6 years
Written Contract: 6 years
Contracts for Sale (UCC): 4 years
Judgment: 10 years

Mississippi
Oral Contract: 3 years
Written Contract: 3 years
Contracts for Sale (UCC): 4 years
Judgment: 7 years

Missouri
Oral Contract: 5 years
Written Contract: 10 years
Contracts for Sale (UCC): 4 years
Judgment: 10 years

Montana
Oral Contract: 5 years
Written Contract: 8 years
Contracts for Sale (UCC): 4 years
Judgment: 10 years

Nebraska
Oral Contract: 4 years
Written Contract: 5 years
Contracts for Sale (UCC): 4 years
Judgment: 20 years

Nevada
Oral Contract: 4 years
Written Contract: 6 years
Contracts for Sale (UCC): 4 years
Judgment: 6 years

New Hampshire
Oral Contract: 3 years
Written Contract: 3 years
Contracts for Sale (UCC): 4 years
Judgment: 20 years

New Jersey
Oral Contract: 6 years
Written Contract: 6 years
Contracts for Sale (UCC): 4 years
Judgment: 20 years

New Mexico
Oral Contract: 4 years
Written Contract: 6 years
Contracts for Sale (UCC): 4 years
Judgment: 14 years

New York
Oral Contract: 6 years
Written Contract: 6 years
Contracts for Sale (UCC): 4 years
Judgment: 20 years

North Carolina
Oral Contract: 3 years
Written Contract: 3 years
Contracts for Sale (UCC): 4 years
Judgment: 10 years

North Dakota
Oral Contract: 6 years
Written Contract: 6 years
Contracts for Sale (UCC): 4 years
Judgment: 10 years

Ohio
Oral Contract: 6 years
Written Contract: 8 years
Contracts for Sale (UCC): 4 years
Judgment: 21 years

Oklahoma
Oral Contract: 3 years
Written Contract: 5 years
Contracts for Sale (UCC): 4 years
Judgment: 5 years

Oregon
Oral Contract: 6 years
Written Contract: 6 years
Contracts for Sale (UCC): 4 years
Judgment: 10 years

Pennsylvania
Oral Contract: 4 years
Written Contract: 4 years
Contracts for Sale (UCC): 4 years
Judgment: 20 years

Rhode Island
Oral Contract: 10 years
Written Contract: 10 years
Contracts for Sale (UCC): 4 years
Judgment: 20 years

South Carolina
Oral Contract: 3 years
Written Contract: 3 years
Contracts for Sale (UCC): 4 years
Judgment: 10 years

South Dakota
Oral Contract: 6 years
Written Contract: 6 years
Contracts for Sale (UCC): 4 years
Judgment: 20 years

Tennessee
Oral Contract: 6 years
Written Contract: 6 years
Contracts for Sale (UCC): 4 years
Judgment: 10 years

Texas
Oral Contract: 4 years
Written Contract: 4 years
Contracts for Sale (UCC): 4 years
Judgment: 10 years

Utah
Oral Contract: 4 years
Written Contract: 6 years
Contracts for Sale (UCC): 4 years
Judgment: 8 years

Vermont
Oral Contract: 6 years
Written Contract: 6 years
Contracts for Sale (UCC): 4 years
Judgment: 8 years

Virginia
Oral Contract: 3 years
Written Contract: 5 years
Contracts for Sale (UCC): 4 years
Judgment: 10 or 20 years (depending on judgment date)

Washington
Oral Contract: 3 years
Written Contract: 6 years
Contracts for Sale (UCC): 4 years
Judgment: 10 years

West Virginia
Oral Contract: 5 years
Written Contract: 10 years
Contracts for Sale (UCC): 4 years
Judgment: 10 years

Wisconsin
Oral Contract: 6 years
Written Contract: 6 years
Contracts for Sale (UCC): 6 years
Judgment: 20 years

Wyoming
Oral Contract: 8 years
Written Contract: 10 years
Contracts for Sale (UCC): 4 years
Judgment: 21 years

The above data is accurate as of August 2025.

 

Have a debt collection question? We’re here to help.
Email: info@paymentresolutionpartners.com
Phone: 888-789-7108
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