Do I Have to Pay a Debt That’s Really Old?

If you haven't paid a debt in a long time, the legal time limit to sue you for it may have passed. This is called a time-barred debt. You still legally owe the debt, but the person or company trying to collect it can no longer take you to court to force payment.

Knowing whether a debt is time-barred can help you protect your rights, decide if paying an old debt makes sense, and avoid being sued for it.

Not all debts have the same rules: The information in this article applies to consumer debts. These are debts for personal, family, or household expenses like credit cards, medical bills, or utility bills. Debts related to work or a business, child or spousal support, a criminal case, or taxes have different rules. For more on what is and is not a consumer debt, go here.

In Oregon, this time limit—called the statute of limitations—is usually six years for consumer debts. That time starts from the date you last made a payment. 

• Certain actions can restart the clock, like making a payment, agreeing to pay, or admitting the debt is yours.
• If you restart the clock, the debt is no longer time-barred, and you can be sued for it.

What can reset the time limit for an old debt?

If a debt is old, be careful what you say or do until you know whether it's time-barred. Certain actions can restart the clock and make it possible for the collector to sue you again. These include:

• Making a payment, even a small one.
• Saying the debt is yours in writing, online, or over the phone.
• Agreeing to a payment plan or settlement.

Simply talking to a debt collector, asking for more information, or disputing the debt doesn't restart the clock. But if you admit you owe it or agree to pay, you could lose legal protections.

Do I still owe a debt if the time limit has passed?

Yes. Even if the time limit has passed, the debt still exists. 

Debt collectors can still contact you and ask for payment. For more on dealing with calls from debt collectors and how to make them stop, go here.

But they cannot:

• Sue you in court to collect a time-barred debt.
• Threaten to sue you over a time-barred debt.

If a collector does sue you, you can use the expired time limit as a legal defense. If they threaten to sue you, they may be breaking the law. 

To learn more about your rights and what to do if a collector breaks the law, go here.

It's your right to know if a debt is time-barred. 

• You can ask the debt collector directly or seek legal advice if you're unsure.
• Go here to learn how to get more information about a debt, including how old it is.

Will a time-barred debt affect my credit score?

Yes. Even if you can't be sued, a time-barred debt can still appear on your credit report and lower your credit score.

A debt can stay on your credit report for up to seven years from the date you first missed a payment, making it harder to get loans or credit. 

To check if a debt is still listed on your credit report, you can request a free copy at AnnualCreditReport.com.

What should I do if I am contacted about an old debt?

If you're contacted about a debt you think may be time-barred:

• Don't agree to pay or say the debt is yours until you get more information.
  • A debt collector may try to get you to make a small introductory payment on an old debt. 
  • This can reset the clock and allow them to sue you.
  • It's okay to tell them you won't talk about the debt until you get more information.
• Ask for proof.
  •  Ask them to send you more information about the debt and whether it's time-barred.
• Know your options.
  • If you can afford to pay, you may consider settling with them or setting up a payment plan.
  • If you can't pay, you don't have to, but collectors can still contact you as long as they don't threaten legal action.
  • Read more about your options in debt collection here.
• Know your rights. 
  • If a debt collector threatens to sue you over a time-barred debt, they may be breaking the law.

File a complaint:

1. File a complaint with the Consumer Financial Protection Bureau, a federal government agency. 
2. File a complaint with the Oregon Department of Justice, a state government agency.

Get legal help:

1. Search Oregon Law Help's Legal Directory for free and low-cost legal services.
2. Contact the Oregon State Bar Lawyer Referral Service for a low-cost consultation with a consumer protection lawyer.

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