Oregon Statute of Limitations on Debt: Complete 2025 Guide
Oregon's six-year statute of limitations protects you from lawsuits on most consumer debts. The clock starts from your last payment, not your first missed payment. If collectors sue after six years expire, you can get the case dismissed by raising the statute as an affirmative defense in your court response.
Answer Your LawsuitCreditors and debt collectors have a limited window to sue you for unpaid debt. The statute of limitations defines this timeframe. In Oregon, you get six years of protection for most debts. After that, collectors lose their legal right to sue.
Most debt falls under this rule. Credit card debt, medical bills, and student loans all follow the same timeline. The statute of limitations gives you a powerful defense in court. You can stop lawsuits that come too late.
Respond to Your Oregon Debt Lawsuit in 15 Minutes
Oregon gives you only 30 days to respond after being served. Missing this deadline means automatic loss. Our partner Solo walks you through each step to assert the statute of limitations defense properly.
Start Your Answer NowOregon residents need to understand these protections. They can make the difference between losing and winning a debt lawsuit.
Oregon Law Sets a Six-Year Limit on Debt Collection
Oregon Revised Statutes § 12.080 establishes the timeline for debt collection lawsuits. The law covers contracts, liabilities, and property claims. Creditors must file within six years of your last payment.
The clock doesn’t start when you first owe money. It begins ticking from your last payment on the account. Make even a small payment and you restart the entire countdown.
Six years protects you from most common debts. Medical bills, credit cards, auto loans, and personal loans all follow this rule. Mortgage debt and judgments get a longer ten-year window.
Different Debts Have Different Deadlines
| Debt Type | Statute of Limitations |
|---|---|
| Credit Card | 6 years |
| Medical | 6 years |
| Student Loan | 6 years |
| Auto Loan | 6 years |
| Personal Loan | 6 years |
| Mortgage | 10 years |
| Judgment | 10 years |
Judgments deserve special attention. When a creditor sues before your six years expire, they can get a judgment. That judgment extends their collection rights to ten full years. Many creditors wait years before filing suit, then use judgments to maximize collection time.
Your Last Payment Date Matters Most
The statute of limitations doesn’t begin when you miss a payment. It starts from your last payment on the debt. Even a small payment resets the entire clock to zero.
Collectors know this trick well. They’ll pressure you to make a tiny payment on old debt. One payment gives them six more years to sue you. Never make payments on old debt without checking the statute first.
After six years pass without payment, creditors lose their lawsuit rights. They cannot take you to court for the money. The debt still exists, but they have no legal enforcement power.
Your credit report operates under different rules. Unpaid debt can appear on your report even after the statute expires. The Fair Credit Reporting Act limits this to seven years for most debts.
Real Oregon Case Example
Consider an Oregon resident with $1,000 in credit card debt. He lost his job and stopped making payments. Seven years later, a collection agency sued him for the debt.
His first instinct was to pay immediately. Instead, he checked Oregon’s statute of limitations. Six years had passed since his last payment. He raised this as an affirmative defense in his court response with help from our partner Solo.
The collection agency dismissed the case. They realized their mistake. They can still contact him about the debt, but they cannot sue.
Contract Terms Can Change the Timeline
Some credit agreements contain choice-of-law provisions. These clauses might specify another state’s laws govern disputes. Delaware has a three-year statute of limitations on debt.
National credit card companies sometimes use Delaware law in their contracts. An Oregon appeals court later ruled these provisions don’t apply when debt gets sold. Once a collection company buys the debt, Oregon’s six-year rule kicks in.
Always read your original credit agreement carefully. The fine print might contain important statute of limitations details.
Collectors May Still Contact You After Time Expires
The statute of limitations only prevents lawsuits. It doesn’t stop collection calls or letters. Debt collectors can legally contact you about time-barred debt. They just cannot sue you for it.
Some collectors ignore the statute intentionally. They hope you don’t know your rights. They might claim the debt is still legally enforceable. They’re betting on your ignorance.
Never make a payment without checking the statute first. One payment restarts the clock completely. You give collectors six more years to sue you.
If collectors sue after the statute expires, you must raise this defense. Courts don’t automatically dismiss time-barred lawsuits. You need to file a response asserting the statute of limitations. Our partner Solo helps Oregon residents respond to debt lawsuits within the state’s 30-day deadline.
Federal Law Protects You From Collector Abuse
The Fair Debt Collection Practices Act gives you nationwide protection. The FDCPA limits what debt collectors can say and do. You have these rights under federal law:
- Collectors cannot tell third parties about your debt. Only your attorney, spouse, and creditor can know.
- Mail from collectors cannot reveal its purpose on the outside. No visible debt collection language allowed.
- Collectors cannot call before 8 a.m. or after 9 p.m. your local time.
- Work calls are prohibited if you tell them to stop.
- Harassment is illegal. Repeated calls, profanity, and threats break the law.
- Suing for time-barred debt violates the FDCPA in many cases.
- False credit reporting is prohibited.
- Misleading statements to force payment are illegal.
The FDCPA applies to third-party debt collectors. Original creditors have more freedom under federal law. Oregon state law fills this gap.
Oregon’s Law Adds Extra Protection
The Oregon Unlawful Debt Collection Practices Act strengthens your rights. The OUDCPA applies to both original creditors and collection agencies. All debt collectors must register in Oregon.
Oregon law provides these additional protections:
- Work mail is allowed only if collectors lack your home address.
- Original creditors must follow OUDCPA rules, not just collection agencies.
- Workplace calls are limited to once per week maximum.
- Collectors must identify themselves within 30 seconds of phone contact.
- Collectors cannot add unauthorized fees to your debt balance.
Violations of FDCPA or OUDCPA laws deserve reporting. File complaints with the Oregon Attorney General’s office. Submit reports to the Consumer Financial Protection Bureau. Contact the Federal Trade Commission online.
How to Raise the Statute as Your Defense
Getting sued for old debt requires immediate action. You must respond to the lawsuit within Oregon’s deadline. Most counties give you 30 days from service of the summons.
Your response needs to assert the statute of limitations specifically. Call it an affirmative defense in your Answer document. Courts won’t dismiss the case automatically. You must raise this defense properly.
Calculate the timeline carefully. Count back six years from today. Find the date of your last payment on the account. If more than six years passed, you have a strong defense.
Gather evidence supporting your timeline. Bank statements showing your last payment help prove your case. Credit reports might show the date of first delinquency. Collection letters sometimes reveal when you stopped paying.
Filing your Answer starts the court process. Oregon assigns civil cases under $50,000 to mandatory arbitration. You’ll face a hearing date and potential arbitration fees. Settlement before arbitration can save you money and stress.
State Tax Debt Never Expires
Oregon has no statute of limitations on state tax debt. The state can pursue tax debts indefinitely. No amount of time protects you from state tax collection.
Tax debt operates under completely different rules. The protections for consumer debt don’t apply. The state has powerful collection tools including wage garnishment and bank levies.
If you owe Oregon state taxes, ignoring them won’t help. The debt never goes away on its own.
What Happens When You Ignore a Lawsuit
Ignoring a debt lawsuit guarantees you lose. The collector wins by default judgment. The court enters judgment without hearing your side. The creditor gets a ten-year judgment to collect the debt.
Default judgments have serious consequences. Creditors can garnish your wages up to 25% of disposable income. They can freeze and seize money from your bank accounts. They can place liens on your property.
Even time-barred debt becomes collectible through default judgment. You lose your statute of limitations defense by not showing up. The judgment restarts everything with a ten-year collection window.
Always respond to lawsuits within the deadline. Even strong defenses fail if you don’t file them properly.
Understanding Debt Validation Rights
You have the right to validate any debt a collector claims you owe. Send a debt validation letter within 30 days of first contact. The FDCPA requires collectors to verify the debt is yours.
Validation requests must include specific information. Collectors must prove they own the debt. They must show the amount is accurate. They must verify the original creditor’s identity.
Collectors must stop collection efforts until they provide validation. They cannot sue you during this verification period. Many collection agencies cannot properly validate old debts. Missing paperwork works in your favor.
Validation letters work best before lawsuits start. Once you’re sued, you need to respond to the court complaint. Validation rights don’t extend court deadlines.