Debt can very much feel like a “forever” thing. In the beginning of my debt journey (which is still going on, thanks to student loans), I struggled to imagine a time when I’d be debt free. But one thing I didn’t know was that debt can have an expiration date.
The name of this expiration date is a statute of limitations. The statute of limitations dictates a time frame in which a creditor can sue you for the repayment of unpaid debt. This time frame varies per state and per debt category.
While the idea of a statute of limitations sounds straightforward, the reality of enforcing it is anything but. Every point in the process carries the potential for confusion: from when the clock starts ticking to how your state categorizes your debt to which state you can get sued in. Below is a guide to what you need to know about the statute of limitations so you can break through the confusion.