Statute of Limitations on Debt in Wisconsin: Know Your Rights
Wisconsin gives you six years as the statute of limitations on most consumer debts. After your last payment date passes this deadline, creditors cannot sue you in court. You must actively assert this defense in your Answer within 20 days of receiving a lawsuit summons.
Answer Your LawsuitYou have powerful legal protections when dealing with old debt in Wisconsin.
Debt collectors cannot sue you forever. The law sets strict time limits on when creditors can take legal action.
Beat Your Wisconsin Debt Lawsuit in 20 Days
You have only 20 days to respond to a debt collection lawsuit in Wisconsin. Our partner Solo helps you draft a proper Answer with statute of limitations defenses that win cases.
Respond to Lawsuit NowUnderstanding these deadlines can help you win your case.
What Is the Statute of Limitations on Wisconsin Debt?
The statute of limitations is a deadline for lawsuits. After this time passes, creditors cannot sue you in court.
In Wisconsin, most debts have a six-year statute of limitations. The clock starts ticking from your last payment date.
Making a payment restarts the entire time period. Be careful about acknowledging old debts.
Wisconsin Chapter 893, §893.43 states that actions on contracts must commence within six years. After that, the debt becomes time-barred.
Time-barred debt means you cannot be sued. You still owe the money, but collectors lose their legal power.
Wisconsin Statute of Limitations by Debt Type
Different debts have different deadlines in Wisconsin.
| Debt Type | Years to Sue |
|---|---|
| Credit Cards | 6 |
| Medical Bills | 6 |
| Personal Loans | 6 |
| Written Contracts | 6 |
| Oral Contracts | 6 |
| Promissory Notes | 10 |
| Judgments | 10-20 |
Credit card debt follows the six-year rule. Most consumer debts fall into this category.
Promissory notes get ten years. Judgments last even longer.
Wisconsin law prohibits collection efforts on expired debts. Original creditors and collection agencies must follow this rule.
Violating these limits breaks federal law. The Fair Debt Collection Practices Act protects you.
How to Use the Statute of Limitations as a Defense
You must actively assert this defense in court. The statute of limitations does not automatically dismiss cases.
When you receive a lawsuit summons, check the debt’s age. Calculate from your last payment date.
If more than six years have passed, you have a winning defense. Our partner Solo helps you file the proper response.
Include the expired statute as an affirmative defense in your Answer. State clearly that the debt is time-barred.
Courts will dismiss cases once you prove the deadline passed. You walk away without paying.
Example: Time-Barred Debt Victory
Marcus received a lawsuit for a credit card from 2016. He last made a payment in January 2017.
The collection agency sued him in March 2024. That’s seven years after his last payment.
Marcus filed an Answer stating the statute of limitations expired. The court dismissed the case.
He paid nothing and protected his wages from garnishment.
Wisconsin Judgments Work Differently
Judgments have much longer enforcement periods than the original debt statute.
Once a court enters a judgment, it becomes a lien for ten years. The creditor can renew it for another decade.
Judgment creditors have 20 years to seize property. They can extend this another 20 years with court permission.
The statute of limitations does not apply to existing judgments. You cannot use this defense after losing in court.
Wage garnishment often signals an existing judgment. Your window to use the statute defense has closed.
Respond to lawsuits immediately to avoid default judgments. Once entered, judgments become much harder to fight.
How Debt Collection Works in Wisconsin
Creditors typically contact you before filing lawsuits. They want payment without court costs.
If negotiations fail, they file a lawsuit in Wisconsin courts. You receive a summons and complaint.
You have 20 days to respond in Wisconsin. Missing this deadline results in default judgment.
Default judgments happen when you do not file an Answer. The creditor wins automatically.
After winning a judgment, creditors become judgment-creditors. They gain powerful collection tools.
Collection Methods After Judgment
Judgment-creditors can pursue multiple collection methods:
- Wage garnishment from your paycheck
- Bank account levies
- Liens on real estate
- Seizure of personal property
These remedies require a valid judgment. Responding to the lawsuit prevents these actions.
Wisconsin Wage Garnishment Limits
Wisconsin law protects 80% of your disposable earnings. Only 20% can be garnished for consumer debt.
Disposable earnings means take-home pay after required deductions. Taxes and mandatory contributions come out first.
Social Security and pension income are exempt under federal law. Creditors cannot touch these funds.
Wage garnishment requires a court order. You receive notice before deductions begin.
Filing a proper Answer stops garnishment before it starts. Our partner Solo helps you respond within the 20-day deadline.
Bank Account Levies in Wisconsin
Judgment-creditors can freeze and drain your bank accounts. They serve the levy directly to your bank.
The bank freezes your account immediately. You lose access to your money.
Certain funds remain protected even after levy. Social Security deposits and disability payments have special protections.
You can challenge improper levies in court. Act quickly before the bank releases funds.
Preventing judgments stops levies before they happen. Respond to lawsuits within 20 days.
Property Liens in Wisconsin
Judgment liens attach to real estate you own. They appear in public property records.
You cannot sell or refinance without satisfying the lien. The judgment must be paid from proceeds.
If the judgment exceeds your equity, you are trapped. You cannot access your property value.
Liens last ten years and can be renewed. They create long-term financial problems.
Winning your case prevents liens entirely. Use the statute of limitations defense when applicable.
Wisconsin Community Property Rules
Wisconsin is a community property state. You may be liable for your spouse’s debts.
Debts incurred during marriage often become joint obligations. Both spouses can be pursued.
The doctrine of necessities determines liability. Essential expenses like food and shelter apply.
Check if the statute of limitations expired on your spouse’s debt. You can still use this defense.
Do not assume automatic liability. Review each debt individually.
How to Respond to Wisconsin Debt Lawsuits
You must file a written Answer within 20 days. No exceptions exist for this deadline.
Your Answer must respond to each claim in the Complaint. Admit, deny, or state insufficient knowledge.
Include affirmative defenses like expired statute of limitations. These are your strongest weapons.
File your Answer with the court clerk. Send a copy to the opposing attorney.
Three Steps to File Your Answer
First, respond to every numbered paragraph in the Complaint. Use the same numbering.
Second, list your affirmative defenses. Include the statute of limitations if applicable.
Third, file with the court and serve the plaintiff’s attorney. Keep proof of filing and service.
Our partner Solo walks you through each step. The platform generates a legally proper Answer.
Attorney review ensures your document meets court requirements. Filing services handle submission.
Common Mistakes to Avoid
Never ignore a lawsuit summons. Default judgments happen fast.
Do not miss the 20-day deadline. Courts rarely grant extensions.
Avoid discussing the debt with collectors before filing. You might restart the statute of limitations.
Do not make payments on time-barred debts. Any payment restarts the six-year clock.
Never assume the debt is too old. Calculate carefully from your last payment.
What Happens If You Win
The court dismisses the case when you prove the statute expired. The collector loses.
You pay nothing on the debt. Your wages and accounts remain safe.
The judgment never appears on your credit report. Your score avoids additional damage.
The collector cannot refile the same lawsuit. The statute of limitations bars future attempts.
You gain peace of mind and financial security. Your income stays in your pocket.
Free Resources for Wisconsin Debtors
Wisconsin legal aid organizations provide free assistance. They help low-income residents fight debt cases.
The Wisconsin State Bar offers attorney referrals. Some provide free consultations.
Federal law requires debt collectors to validate debts. Request written proof before responding.
Document all communications with collectors. Keep records of letters, calls, and payments.
Our partner Solo offers free resources and tools. The platform helps you understand your rights.
Take Action Before the Deadline
You have only 20 days to respond to a Wisconsin lawsuit. Every day counts.
Check the date on your summons immediately. Calculate your deadline carefully.
Gather documents showing your last payment date. Bank statements and account records help.
If six years have passed, you have a strong defense. Use it to protect yourself.
Do not let fear prevent action. Responding is easier than you think.
The statute of limitations gives you power. Use it to win your case.