← All Glossary Terms
Definition
The statute of limitations (SOL) on debt is the period during which a creditor can file a lawsuit to collect an unpaid balance. Once the SOL expires, the debt is legally "time-barred" — creditors cannot win a court judgment if you raise the SOL as a defense. SOL periods vary significantly by state: 3 years in North Carolina, 4 years in Texas and California, 5 years in Florida, 6 years in Arizona and Georgia. The clock typically begins on the date of last payment or last account activity. Critically: making even a small payment on a time-barred debt can restart the SOL clock in most states. The SOL applies only to lawsuits — time-barred debt can still appear on your credit report for 7 years from first delinquency under the Fair Credit Reporting Act.
Also Known As
SOL
time-barred debt
limitation period
debt collection statute
Used in Context
- A debt collector called about a credit card balance last paid six years ago in Florida — past the 5-year SOL, making the debt time-barred and the lawsuit threat legally hollow.
- The consumer attorney warned: "Don't make any payment on that old account — even $1 could restart Florida's 5-year statute of limitations and expose you to a new lawsuit."
- Knowing the North Carolina 3-year SOL had long passed, the consumer wrote a cease-and-desist letter, citing NC Gen Stat §1-52, and the collection calls stopped.
Ready to compare debt relief options?
Free quotes from licensed experts — no spam, no obligation, results in 60 seconds.
Get Free Quotes →