California Statute of Limitations on Debt: What You Need to Know
California gives creditors four years to sue for most debts like credit cards and medical bills. Once the statute of limitations expires, you can use it as a defense in court. If you're sued for a time-barred debt, respond within 30-40 days and assert this defense to get the case dismissed.
Answer Your LawsuitCreditors in California have only four years to sue you for most unpaid debts. Understanding these time limits can protect you from unfair lawsuits. Here’s what you need to know about debt collection deadlines in California.
How the California Statute of Limitations Works
The statute of limitations sets a deadline for debt collectors to sue you. The clock starts when you miss your first payment. After that time expires, collectors can’t take you to court.
Respond to Your California Debt Lawsuit in Minutes
California collectors sue hoping you won't respond. Don't let them win by default. Answer your lawsuit before your 30-40 day deadline expires and assert your statute of limitations defense.
Create Your Answer NowHowever, certain actions can restart this clock. You need to avoid these mistakes.
Actions That Restart the Clock
- Making Any Payment: Even a small payment acknowledges the debt. The statute of limitations resets completely, giving collectors more time to sue.
- Agreeing to Pay: Accepting a repayment plan restarts the clock immediately. You’re back to square one with full time for a lawsuit.
- Accepting a Settlement: Settlement offers seem attractive, but they reset the statute of limitations. The debt becomes legally enforceable again.
- Using the Account: Making new charges on an old account renews the entire debt. The fresh activity restarts the collection timeline.
If you’re facing a debt lawsuit, our partner Solo can help you respond with the right defenses.
Time Limits for Different Debt Types in California
Most consumer debts have a four-year statute of limitations in California. Credit card debt, medical bills, student loans, and auto loans all fall under this category.
Some debts have longer deadlines. Mortgages and personal loans give creditors six years to sue. Court judgments last ten years before expiring.
California Debt Collection Deadlines
| Debt Type | Time Limit |
|---|---|
| Credit Card | 4 years |
| Medical Bills | 4 years |
| Student Loans | 4 years |
| Auto Loans | 4 years |
| Mortgage | 6 years |
| Personal Loan | 6 years |
| Judgment | 10 years |
Debts Without Time Limits
Federal student loans never expire. Collectors can pursue these debts indefinitely. Child support also has no statute of limitations.
California state taxes can be collected for 20 years. Judgment liens on property last 10 years, even if you sell the property.
How Debt Collection Works in California
Lawsuits are typically a last resort for creditors. Collection efforts start with phone calls and emails soon after you miss payments.
After three to four months, creditors often sell your debt to collection agencies. These agencies buy debts cheaply and profit by collecting the full amount.
Debt collectors have more resources than original creditors. They hire investigators to track you down. They may contact you even years after your last payment.
Your Protection Under Federal Law
The Fair Debt Collection Practices Act (FDCPA) protects you from harassment. Collectors can’t call before 8 am or after 9 pm. You can demand they stop contacting you entirely.
However, stopping contact doesn’t prevent a lawsuit. Collectors can still sue before the statute of limitations expires.
Responding to a California Debt Lawsuit
Many collectors sue hoping you won’t respond. Some don’t realize the debt is time-barred. Records get lost when debts change hands multiple times.
Failing to respond results in an automatic default judgment. The court rules against you without hearing your side.
Your Response Deadline
California gives you 30 or 40 days to respond. You get 30 days if someone handed you the summons directly.
You get 40 days if the summons was mailed or given to someone else at your home.
Steps to File Your Answer
First, confirm your exact deadline. Mark it on your calendar immediately.
Next, prepare your Answer document. Respond to each paragraph in the complaint with corresponding paragraphs. Include all your defenses, especially if the debt is time-barred.
Finally, file your Answer with the court. Send a copy to the plaintiff’s attorney as well.
Our partner Solo walks you through every step of responding to a debt lawsuit. You’ll answer questions online, and they’ll generate your legal documents.
Using the Statute of Limitations as a Defense
Time-barred debt is your strongest defense. If the statute of limitations expired, collectors can’t win in court.
You must raise this defense in your Answer. Courts don’t check automatically. You need to specifically state the debt is too old.
Gather evidence of when you last made a payment. Bank statements, credit reports, and account records all help prove your case.
The burden shifts to the collector after you raise this defense. They must prove the debt isn’t time-barred. Many can’t produce adequate records.
What Happens After the Statute of Limitations Expires
You still owe the debt technically. The statute of limitations doesn’t erase what you owe. Collectors can still contact you requesting payment.
However, they can’t sue you successfully. The court will dismiss any lawsuit if you raise the statute of limitations defense.
The debt may still appear on your credit report for seven years. The statute of limitations and credit reporting periods are separate.
Collectors often sell old debts to other agencies. New collectors may not realize the debt is time-barred. Always check the dates before responding to collection attempts.
Avoiding Debt Collection Traps
Collectors use tactics designed to restart the statute of limitations. Recognizing these strategies protects you.
Common Collector Tactics
Collectors may ask you to “verify” the debt. They send paperwork requesting you confirm you owe the money. Signing anything can restart the clock.
They offer attractive settlement deals for old debts. Paying even a dollar acknowledges the debt and resets the timeline.
Some collectors misrepresent the statute of limitations. They may claim it doesn’t apply or that it’s longer than it actually is.
Protecting Yourself
Never make payments on old debts without legal advice. Check the statute of limitations first.
Don’t sign any documents from collectors. Written acknowledgment of debt restarts the clock.
Request debt validation in writing. Collectors must prove they own the debt and the amount is correct. Don’t provide any information about yourself.
Keep detailed records of all communication. Document dates, times, and what was discussed. These records help if you end up in court.