Virginia Statute of Limitations on Debt: 3 or 5 Years?
Virginia gives creditors five years to sue on written contracts and credit cards, three years on oral agreements. If they sue after the deadline, you win—but only if you show up and raise the defense.
Know Your RightsA collector called about a credit card you stopped paying in 2018. They say you owe $8,400. Can they still sue you in Virginia?
The answer depends on one number: how long ago your last payment posted. In Virginia, creditors have either three or five years to file a lawsuit, depending on the type of debt. After that window closes, the debt becomes "time-barred." You still owe the money in a moral sense, but collectors lose their legal power to force payment through court.
Here's what the Virginia statute of limitations means for you, which debts expire when, and how to use this law as a shield if you get sued.
What the Statute of Limitations Actually Does
The statute of limitations sets a deadline for lawsuits. Once that deadline passes, collectors can still call and send letters. They can still report the debt to credit bureaus (for up to seven years from the original delinquency date). What they cannot do is take you to court and win a judgment that lets them garnish your wages or freeze your bank account.
If a collector files suit after the statute expires, you have an absolute defense. But you must raise it. Virginia courts do not dismiss time-barred cases automatically. You file an Answer, cite the statute, and the case gets tossed. That's why knowing the clock matters.
Virginia's Two Timelines: 5 Years or 3 Years
Virginia law splits debts into two categories, each with its own expiration date.
5-Year Statute of Limitations
This applies to debts based on a written contract signed by you or your agent. Examples:
- Credit card agreements
- Auto loans
- Personal loans with a signed promissory note
- Medical bills tied to a signed payment plan
Virginia Code § 8.01-246(2) is clear: actions on a written, signed contract must be filed within five years of when the cause of action accrues. For revolving accounts like credit cards, that means five years from your last payment or last charge, whichever came later.
3-Year Statute of Limitations
This shorter window covers debts without a signed written agreement. Virginia Code § 8.01-246(4) lists:
- Oral contracts: You agreed to repay, but nothing was signed.
- Open accounts: Store credit accounts or service agreements where you never signed a contract.
- Implied contracts: You received a service, and payment was expected but not formalized in writing.
Medical debt often falls here if you never signed a payment agreement. Same with utility bills and some cell phone contracts.
When the Clock Starts Ticking
The statute begins on the date of your last account activity. For a credit card, that's usually the date of your last payment. For a loan in default, it's the date of the first missed payment that you never cured.
Stop making payments on January 15, 2020? A collector suing you on January 16, 2025, is still within the five-year window. They sue on January 20, 2025? Too late. You win.
But watch for "restart" triggers. In Virginia, making even a partial payment or signing a new written agreement acknowledging the debt can reset the clock. A $20 payment in 2023 on that 2018 debt? You just gave them five more years.
What Happens If You Get Sued on a Time-Barred Debt
Collectors sometimes file anyway, betting you won't show up. If you ignore the lawsuit, the court enters a default judgment. The statute of limitations becomes irrelevant because you lost by forfeit.
If you do respond, your Answer should include an affirmative defense citing the expired statute. Use the exact code section: § 8.01-246(2) for written contracts, § 8.01-246(4) for oral or open accounts. Attach proof if you have it—bank statements showing your last payment date, account closure letters, anything that establishes the timeline.
Once you file, the burden shifts to the collector. They must prove the debt is not time-barred. If they can't, the judge dismisses the case. You pay nothing. The judgment never appears on your credit report.
If you need help drafting an Answer or understanding your defense options, Talk About Debt's screener tool can connect you with the right resources based on your situation.
Choice-of-Law Clauses: The Fine Print That Changes Everything
Some credit card agreements include a "choice of law" provision. It might say, "This agreement is governed by the laws of Delaware." If Delaware's statute of limitations is longer than Virginia's, the card issuer might argue Delaware's clock applies.
Virginia courts have upheld these clauses in some cases, rejected them in others. The outcome often hinges on whether Virginia has a "materially greater interest" in the dispute. If you lived in Virginia when you opened the account and still live here now, you have a strong argument that Virginia law should control.
If a collector cites out-of-state law, challenge it. Do not assume their interpretation is correct. Consult a consumer lawyer or use a service that helps you craft a response.
Federal Law Does Not Override State Statutes
The Fair Debt Collection Practices Act (FDCPA) regulates how collectors behave. It bans harassment, requires them to verify debts, and limits when they can call. But it does not set a national statute of limitations. That's a state-by-state question.
The FDCPA does, however, prohibit collectors from suing or threatening to sue on a debt they know is time-barred. Filing such a lawsuit is a federal violation. If it happens to you, you can countersue for damages under the FDCPA.
Credit Reporting vs. Lawsuit Deadlines
A debt can still appear on your credit report even after the statute of limitations expires. The Fair Credit Reporting Act allows negative items to stay for seven years from the date of first delinquency. So a debt from 2018 can haunt your credit until 2025, even though a lawsuit expired in 2023.
You cannot be sued, but your credit score still takes a hit. That's a bitter pill, but it's the law. After seven years, the debt must fall off your report automatically. If it doesn't, you can dispute it with the credit bureaus.
What to Do If Collectors Contact You
When a collector calls, ask three questions:
- What is the original creditor? Verify the debt is yours.
- When was my last payment? Calculate the statute yourself.
- Do you have a signed contract on file? This tells you whether the 3-year or 5-year clock applies.
Do not confirm the debt, promise to pay, or make a partial payment until you know the statute status. A single misstep can restart the clock.
Request validation in writing within 30 days of the collector's first contact. They must send proof of the debt, the original creditor's name, and the amount. If they cannot validate, they must stop collection efforts.
When Bankruptcy Makes More Sense Than Waiting
Sometimes the statute of limitations is your best defense. Other times, you have multiple debts, some new and some old, and waiting out the clock is not realistic.
If you're juggling $30,000 in credit card debt spread across five accounts, some within the statute and some outside it, you're still vulnerable. New lawsuits can hit at any time. Wage garnishments in Virginia can take up to 25% of your disposable income. That's a financial disaster.
Filing Chapter 7 bankruptcy wipes out most unsecured debts in four months, regardless of the statute of limitations. It stops lawsuits, ends garnishments, and resets your financial life. For many Virginians, it's the faster, cleaner solution.
How Virginia Courts Handle Statute-of-Limitations Defenses
Virginia follows the "discovery rule" for some debts. If you could not reasonably have known about the debt when it arose, the statute might start later. This is rare and mostly applies to fraud cases, not consumer debt.
For standard collection cases, the statute starts on the default date, period. There's no ambiguity. If the collector cannot prove the debt is within the window, they lose.
Virginia courts also recognize "tolling" in limited circumstances,like if you were out of state for an extended period or if the creditor fraudulently concealed the debt. These are niche defenses. In most cases, the clock runs uninterrupted.
Settling a Time-Barred Debt: Proceed With Extreme Caution
Some collectors offer to settle time-barred debts for pennies on the dollar. Should you pay?
If the debt is beyond the statute, you have zero legal obligation. Paying it does not improve your credit score,the damage is already done. But if the collector agrees to delete the tradeline from your credit report as part of the settlement, that might be worth it.
Get everything in writing before you send money. Specify that the payment is in full settlement, the account will be marked "paid in full," and the tradeline will be deleted. No handshake deals. If they refuse to put it in writing, walk away.
The Bottom Line
Virginia gives creditors five years to sue on written contracts and credit cards, three years on oral or open accounts. After that, you have a complete defense if they take you to court. But you must raise it. The statute does not protect you automatically.
If you're facing a lawsuit and the debt is time-barred, file an Answer and cite the statute. If the debt is recent and the collector has a valid claim, consider settlement, payment plans, or bankruptcy. Ignoring the problem guarantees you lose.