Michigan Statute of Limitations on Debt, The statute of limitations for debt in Michigan varies depending on the type of debt. Written contracts, like credit cards or car loans, have a statute of limitations of 6 years. Oral contracts have a statute of limitations of 6 years as well. Judgments in Michigan expire after 10 years.
Written Contracts - 6 Years
In Michigan, the statute of limitations for written contracts is 6 years. This applies to common debts like:
- Credit cards
- Personal loans
- Car loans
- Medical debt
The clock starts ticking from the date of your last payment or last activity on the account. For example, if you stopped making payments on a credit card 6 years and 1 day ago, the creditor can no longer sue you to collect on that debt.
However, you need to be careful, as certain actions can “revive” the statute of limitations. If you make a payment, enter a payment plan, or even acknowledge that you owe the debt, it resets the 6-year period.
The creditor or collector may still attempt to collect on the debt even though the statute of limitations has expired. They just can’t take you to court. It’s illegal for them to threaten litigation on a time-barred debt.
Oral Contracts - 6 Years
Judgments - 10 Years
Resolving Old Debt with Debt Settlement Companies
If you have debts in Michigan that are past the statute of limitations, the smartest approach is often to work with an experienced Michigan debt settlement company. Debt settlement provides a way to resolve old, unpayable debts while avoiding bankruptcy. The process involves:
- Stopping payments to creditors and saving up lump sum amounts.
- Having the debt settlement company negotiate reduced payoff amounts.
- Paying the settled amounts from your lump sum savings.
- Becoming debt-free in as little as 12-48 months.