What is the statute of limitations on an outstanding credit card debt?

UPDATED: Jul 27, 2011

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What is the statute of limitations on an outstanding credit card debt?

I have an outstanding debt in the amount of $5,807.86 with a bank, which has been sent to collections. I have not had any dealings with that bank in 6 years, and do not have an account with them anymore. I want to know what the statute of limitations is in this case. I signed up for the credit card in MD, but I live in MI now. The debt is currently accruing interest, and I have no way to pay it back (I am unemployed and without income or assets). I am considering the collections agency’s offer of paying a minimum monthly amount of $37. Is this the best/only option?

Asked on July 27, 2011 Michigan


FreeAdvice Contributing Attorney / FreeAdvice Contributing Attorney

Answered 11 years ago | Contributor

In most states in this country, the statute of limitations for a breach of a written agreement is four years from the breach. However, with an obligation such as a credit card debt, the statute could be interpreted as starting to run from the last payment made for time computation purposes or the last charge made whatever is the last event.

A six year period for not using the credit card or making any payments on it where no lawsuit has been filed may bar a lawsuit for the $5,807.86 amount in your case.

You need to do some research on the statute of limitations issue concerning the state(s) where the credit card was obtained from and used for a more definitive answer. Your county bar association may have a program where attorneys help advise people on their problems. Try calling your county bar association if there is any such program.

Good luck.

IMPORTANT NOTICE: The Answer(s) provided above are for general information only. The attorney providing the answer was not serving as the attorney for the person submitting the question or in any attorney-client relationship with such person. Laws may vary from state to state, and sometimes change. Tiny variations in the facts, or a fact not set forth in a question, often can change a legal outcome or an attorney's conclusion. Although AttorneyPages.com has verified the attorney was admitted to practice law in at least one jurisdiction, he or she may not be authorized to practice law in the jurisdiction referred to in the question, nor is he or she necessarily experienced in the area of the law involved. Unlike the information in the Answer(s) above, upon which you should NOT rely, for personal advice you can rely upon we suggest you retain an attorney to represent you.

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