What if my debt is really old? Do I still have to pay it?

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When debts go unpaid for a long time, it's possible that the legal time limit has passed for the person or business trying to collect the money to sue you. This kind of debt is called a "time-barred" debt, and for some people, this can mean relief from the debt. However, it is important to understand what this means, when it applies, and what your rights are.

What does "time-barred" mean?

Every debt has a legal time limit, called a statute of limitations, for how long you can be sued for payment. When this time limit expires, the debt is considered "time-barred."

In Oregon, this time limit for most consumer debts, such as credit card bills or medical debt, is six years. This means a collector has six years from the date of your last payment to file a lawsuit against you. After six years with no payments, they can no longer sue you. However, making even a small payment after this period can restart the six-year clock.

Be careful about making payments on old debts

Making even a small payment on an old debt can restart the six-year time limit, even if it had already expired. This means the debt collector could once again sue you for the full amount.

If you think the time limit has passed on a debt or you haven't made a payment on it in at least six years, try to talk to an attorney before making any payments or acknowledging the debt. 

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

Yes, you still owe the debt even if the time limit has passed and the debt has become "time-barred." Debt collectors can still contact you and ask for payment. But there are things they cannot do:

• Debt collectors cannot sue you in court to force payment, and if they do, you can use the expired statute of limitations as a legal defense in court.
• They also cannot threaten legal action on a time-barred debt. (This is illegal.)

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.

Will a "time-barred" debt affect my credit score?

Yes, a time-barred debt can still affect your credit score.

Even though a debt is too old for you to be sued over, it can stay on your credit report for up to seven years from the date you first missed a payment. During that time, it can lower your credit score and make it harder to get loans or credit. If you're unsure whether a debt is still on your credit report, you can request a free copy of your report at AnnualCreditReport.com.

What should I do if I am contacted about an old debt that I think might be "time-barred?"

Here are some options if you're contacted about an old debt:

1. Ask for the details: Request written proof of the debt and whether it's "time-barred."
2. Consider your options:
   • If you can pay the debt, you may want to negotiate a settlement or payment plan.
   • If you are financially unable to pay the debt, you cannot be forced to do so, but the collector can keep asking as long as they don't threaten you with a lawsuit.
3. Know your rights: If a collector threatens to sue you for a time-barred debt, they may be violating the law. You can file a complaint with the Consumer Financial Protection Bureau or Oregon's Attorney General and try to seek out a consumer attorney to consult with.