Statute of Limitations on Debt in Minnesota: What You Need to Know

Are you being sued over old debt in Minnesota? Don’t give up on your case.

You have a strong chance of winning the lawsuit. Ignoring it could lead to wage garnishment or bank levies.

Knowing Minnesota’s statute of limitations gives you the tools to fight back. The right defense strategy can dismiss your case entirely.

Minnesota Statute of Limitations on Debt

Minnesota sets specific time limits for debt collection lawsuits. Creditors must file within these deadlines or lose their legal right to sue.

Most Minnesota debts have a six-year statute of limitations. The clock starts from your last payment or account activity.

Auto loans fall under the Uniform Commercial Code. They carry a shorter four-year deadline in Minnesota.

Court judgments last 10 years from the entry date. Creditors can renew them for another 10 years before expiration.

How the Statute of Limitations Protects You

Time-barred debt means the collection window has closed. Collectors can’t legally sue you in court after this period.

You must raise this defense in your Answer. The court won’t automatically dismiss an old debt case.

Collectors may still contact you about time-barred debt. They hope you’ll make a payment and restart the clock.

Never make a payment on old debt without legal advice. One payment can reset the entire statute of limitations.

When Does the Clock Start?

The limitation period begins on your last account activity. Minnesota courts look at your last payment date.

Making a partial payment restarts the countdown completely. Even acknowledging the debt in writing can reset it.

Creditors must prove the debt is within the time limit. You don’t have to prove it’s expired.

What Debt Collectors Can and Cannot Do

The Fair Debt Collection Practices Act protects Minnesota consumers. Collectors must follow strict rules when pursuing debts.

Debt collectors in Minnesota cannot:

• Call you before 8 a.m. or after 9 p.m.
• Contact you at work after you’ve told them to stop
• Discuss your debt with family, friends, or coworkers
• Use threatening, abusive, or profane language
• Falsely claim to be attorneys or law enforcement
• Threaten actions they can’t legally take

Report violations to the Minnesota Attorney General’s Office. You may also have grounds for a counterclaim.

Document every interaction with collectors. Keep records of calls, letters, and messages.

How to Respond to a Debt Collection Lawsuit

You have 21 days to file your Answer in Minnesota. Missing this deadline leads to automatic judgment against you.

The court will grant a default judgment if you don’t respond. Collectors can then garnish your wages or levy your bank account.

Fighting back gives you leverage to negotiate or dismiss the case. Our partner Solo helps you respond correctly to debt lawsuits.

Step 1: Check Your Deadline

Count 21 days from when you received the Summons and Complaint. This includes weekends and holidays in Minnesota.

File before this deadline even if you’re unsure about the debt. You can always settle or negotiate after filing.

Request an extension if you need more time. The court may grant 10 to 14 additional days.

Step 2: Prepare Your Answer Document

Minnesota courts provide a standard Answer form for civil cases. You must respond to each allegation in the complaint.

Choose one of three responses for each claim:

• Admit: You agree the statement is true
• Deny: You dispute the claim
• Lack knowledge: You don’t have enough information to respond

Deny claims you’re unsure about. Never admit to anything you can’t verify.

Step 3: Assert Your Affirmative Defenses

Affirmative defenses explain why you shouldn’t be held liable. You must include them in your Answer.

Strong defenses in Minnesota include:

• The statute of limitations has expired
• You already paid the debt in full
• The amount claimed is incorrect
• The debt resulted from identity theft or fraud
• The collector lacks proof you owe the debt
• The collector violated the FDCPA

Gather evidence supporting your defenses. Bank statements, payment records, and account statements help your case.

Step 4: File Your Answer With the Court

Sign your completed Answer and make two copies. File the original with the court clerk.

Send one copy to the plaintiff’s attorney by certified mail. Keep the third copy for your records.

The return receipt proves you served the plaintiff on time. You’ll need this proof at your hearing.

Our partner Solo can help you draft and file your Answer correctly. They handle service to the plaintiff automatically.

What Happens After You File Your Answer

The case moves to the discovery phase after filing. Both sides exchange information and evidence about the debt.

Collectors may request documents proving your defense. You can also demand proof they own your debt.

Many cases settle during discovery. Collectors often accept less than the full amount once you fight back.

Negotiating a Settlement

You have leverage once you file your Answer. Collectors know trials are expensive and time-consuming.

Offer 25-50% of the claimed amount as settlement. Request deletion from your credit report as part of the deal.

Get any settlement agreement in writing before paying. Never give collectors direct access to your bank account.

Protecting Your Wages and Bank Accounts

Minnesota law limits how much creditors can garnish. Federal and state protections shield some of your income.

Collectors can take up to 25% of your disposable earnings. Disposable income is what remains after required deductions.

Some income is completely exempt from garnishment:

• Social Security benefits
• Supplemental Security Income (SSI)
• Veterans benefits
• Unemployment compensation
• Workers’ compensation
• Public assistance payments

You must claim exemptions to protect this income. File an exemption claim with the court immediately.

How Time-Barred Debt Affects Your Credit

Old debt can stay on your credit report for seven years. The statute of limitations doesn’t remove it automatically.

The reporting period starts 180 days after your first missed payment. It runs independently from the lawsuit deadline.

Paying time-barred debt won’t improve your credit score. The negative mark remains until the seven-year period ends.

Dispute inaccurate or expired debts with credit bureaus. They must verify items or remove them within 30 days.

Common Mistakes to Avoid

Don’t restart the statute of limitations accidentally. Small mistakes can give collectors years of additional time.

Never make a payment on old debt without legal advice. Even $1 can reset the entire six-year clock.

Avoid acknowledging the debt in writing. A simple “I’ll pay when I can” restarts the limitation period.

Don’t ignore lawsuit papers hoping they’ll go away. Default judgments create new 10-year debts with interest.

Never provide bank account information to collectors. They can use it to freeze your account after winning judgment.

When to Seek Legal Help

Complex cases benefit from attorney representation. Consider hiring a lawyer if:

• The debt amount exceeds $5,000
• You’re unsure when the statute of limitations started
• Multiple collectors are suing you simultaneously
• You’ve already had wages garnished
• The collector violated your rights

Many consumer attorneys offer free consultations. Some work on contingency in FDCPA violation cases.

Legal aid organizations serve low-income Minnesota residents. They provide free help with debt collection lawsuits.