If you’re worried about old debt catching up to you, you’re not alone but may be left wondering; What is the statute of limitations on debt in California?
In California, the statute of limitations on most types of consumer debt is 4 years from the last payment or written acknowledgment. After this time, creditors cannot legally sue you for the debt.
With decades of experience helping people overcome financial hardship, our team at Debt Busters understands California debt laws and how to use them to protect your rights. Here’s what you need to know—and how to take action if you’re being contacted about old debt.
What Does “Statute of Limitations on Debt” Mean?
The statute of limitations on debt is the legally established timeframe within which a creditor can initiate a lawsuit to recover a debt. After this time passes, the debt becomes “time-barred,” meaning:
- You still owe the debt.
- Creditors cannot sue you in court to collect.
- If they try, you can raise the expired statute of limitations as a defense.
In California, this timeline varies based on debt type and how it was created.
Why Does the Statute of Limitations Matter for California Consumers?
Understanding the statute of limitations isn’t just legal trivia—it can protect you from financial harm.
Here’s why this time limit is critical:
- Prevents surprise lawsuits: Once the statute expires, collectors can no longer sue you, which eliminates the risk of wage garnishment, bank levies, or court judgments.
- Protects your credit recovery efforts: Knowing when the clock started helps you focus on debts that actually impact your credit or legal standing.
- Helps avoid debt collector traps: Unsuspecting consumers often restart the clock unknowingly by making small payments or acknowledging debts in writing.
Example: If you made a $50 payment on a 5-year-old credit card debt, you could unintentionally give a collector 4 more years to sue you.
By understanding how this law applies, consumers can make strategic decisions about whether to settle, dispute, or ignore old debts—with less risk and more confidence.
How Long Can a Debt Collector Pursue Me in California?
California Statute of Limitations by Debt Type
| Type of Debt | Statute of Limitations | Legal Code |
|---|---|---|
| Credit card debt | 4 years | Cal. Code Civ. Proc. § 337 |
| Auto loans (written) | 4 years | Cal. Code Civ. Proc. § 337 |
| Personal loans (oral) | 2 years | Cal. Code Civ. Proc. § 339 |
| Medical bills | 4 years (written) | Cal. Code Civ. Proc. § 337 |
| Mortgage debt (in default) | 4 years | Cal. Code Civ. Proc. § 337 |
| Judgment debt | 10 years (renewable) | Cal. Code Civ. Proc. § 683.020 |
Key takeaway: Credit card and loan debt is generally subject to a 4-year limit, but judgments last 10 years and can be renewed.
When Does the Clock Start on the Statute of Limitations?
The clock usually starts ticking from the date of your last payment or written acknowledgment of the debt. This means:
- If you make a partial payment, the clock restarts.
- If you send a letter admitting you owe, it restarts.
- If the debt becomes a judgment, the clock is 10 years from that date.
Pro tip: Avoid making payments or written promises on old debt without legal advice—it could reset the statute.
Can a Debt Collector Sue Me After 4 Years in California?
Technically, yes—but legally, you can stop them.
If a creditor or collector sues you for a time-barred debt, you must raise the expired statute of limitations as your defense. If you don’t, the court could still issue a judgment against you.
What to Do if Sued for Old Debt:
- Review the lawsuit paperwork for dates and amounts.
- File a written response (Answer) with the court within the deadline (usually 30 days).
- Assert the statute of limitations defense.
- Consult a debt settlement lawyer or expert for guidance.
Need help fast? Contact a DebtBusters advisor today for a free assessment.
How Do I Know If My Debt Is Time-Barred?
Follow these steps:
- Gather documents: Account statements, payment history, and any correspondence.
- Identify the last payment date.
- Check for written acknowledgments or promises to pay.
- Use California’s 2-year or 4-year rule based on your debt type.
- Consult with a debt advisor or attorney to confirm.
➡ Use this California statute of limitations calculator to estimate deadlines based on your debt type.
What If a Collector Lies About the Statute of Limitations?
Unfortunately, it happens often—and it’s illegal.
Debt collectors must follow the Fair Debt Collection Practices Act (FDCPA) and California’s Rosenthal Act.
You may have a legal claim if a collector:
- Threatens legal action on time-barred debt.
- Fails to disclose that the debt is past the statute of limitations.
- Tricks you into restarting the clock.
Report violations to:
- California Attorney General’s Office
- Consumer Financial Protection Bureau (CFPB)
- Or call Debt Busters—we can help you take immediate action.
What Are My Options If My Debt Is Time-Barred?
Even if you can’t be sued, the debt still exists. Here are your options:
Let It Expire
- No payments, no acknowledgment.
- Wait out the credit reporting period (7 years for most debts).
Settle for Less
- Offer a lump sum or reduced payment.
- Get it in writing before paying.
Dispute or Validate the Debt
- Request written proof of the debt’s legitimacy.
- Use this debt validation letter template (PDF)
Bankruptcy (if eligible)
- Wipe out old debts and stop harassment.
- Check if you qualify for Chapter 7 or 13
How the Statute of Limitations Affects Debt Settlement and Bankruptcy
Many Californians struggling with debt explore debt settlement or bankruptcy as solutions—but the statute of limitations plays a major role in which path makes the most sense.
Impact on Debt Settlement
- Time-barred debts are easier to negotiate. Collectors may accept 10–30% of the balance just to close the file.
- Make sure to get all terms in writing to avoid restarting the clock or facing future collection attempts.
- Ideal for people with a mix of active and expired debts.
Impact on Bankruptcy
- Even if debts are time-barred, they can still be listed in a Chapter 7 or Chapter 13 bankruptcy.
- Filing wipes them out permanently, even if they are no longer legally enforceable in court.
- Best for those overwhelmed with both current and expired debts or who face lawsuits or wage garnishments.
| Scenario | Best Option |
|---|---|
| Mostly expired debts | Settle or wait out |
| Mix of active and expired debts | Debt settlement or BK |
| Lawsuits, garnishments, wage issues | Consider bankruptcy |
| Income too low to repay at all | Chapter 7 bankruptcy |
Pro tip: Consulting with a debt expert ensures you don’t settle a debt that could have been dismissed—or miss a legal deadline that could have protected you.
Ready to Take Control of Your Debt?
Old debt shouldn’t control your life. If you’re unsure whether your debt is time-barred, or if you’re being harassed by collectors, Debt Busters is here to help.
Get a free consultation today to learn your legal options and stop debt collectors in their tracks.
Call 866-223-4395 or schedule your consultation online.
There’s no cost, no pressure—just expert advice from people who care.
Resources:
- California Courts Forms and Resources
- Federal Trade Commission (FTC) Debt Resources
- Consumer Financial Protection Bureau
- Debt Validation Letter Template (PDF)
- California Attorney General’s Office – Debt Collection Rights
Frequently Asked Questions
Can I ignore a debt that’s past the statute of limitations in California?
Yes, but be cautious. Creditors can still contact you or sell the debt. Just don’t make payments or admit liability without legal advice.
Does the statute of limitations affect credit reports?
No. Credit reporting and statute timelines are different. Most debts fall off your report after 7 years, regardless of the statute.
What if I moved out of California—does the law still apply?
Possibly. Courts may apply California’s or your current state’s statute. Always check both.
Can I be arrested for old debt in California?
No. Debt is a civil issue, not criminal. You cannot be jailed for unpaid debt.
How do I stop collection calls about old debt?
Send a cease and desist letter. If the debt is time-barred, inform the collector in writing.
Should I pay a time-barred debt anyway?
Only if it benefits you (e.g., to get a mortgage or clean your credit). Get a settlement agreement in writing first.
