Are you a UK company that needs to collect a debt from a company in the USA?
This article covers the statute of limitations on a state-by-state basis.
If your company is considering legal action to recover a B2B debt in the USA, contact us and find out how we can help you avoid unnecessary and expensive litigation.
Preparing to Collect a Business Debt in the USA
Before considering legal proceedings to recover a business debt in America, we would recommend you first read the preceding three articles in this series:
- Part 1 – How Does USA B2B Debt Collection Work?
- Part 2 – Should We Sue Our US Debtor? Ten Questions to Ask Before Committing
- Part 3 – USA Debt Collection – The Importance of a Court Witnesses
Statute of Limitations List (Reference Only)
The details in the table below have been reviewed by our USA debt collection partner through their network of state-based debt collection attorneys. However, individual states have the power to pass local legislation at any time. Some of the information below may now no longer be correct and is provided for guidance only.
If your company is considering legal action to collect a debt in the USA, you must always speak to an experienced and ethical local attorney first.
How to Use This Table
The table below covers three types of debt agreement:
- Open Account applies when you have extended credit to a customer without a formal signed agreement. This is a standard trading relationship where invoices are sent and expected to be paid within agreed terms.
- Written Contract applies when there is a signed agreement, purchase order, or credit agreement in place. Written contracts generally attract longer limitation periods, which is one of several reasons why having a signed contract with US clients is strongly advisable.
- Oral Agreement is included for completeness. We strongly advise against extending credit on a verbal basis, particularly to overseas clients.
Most B2B commercial debts will fall into either the open account or written contract category. If you are unsure which category your debt falls into, speak to us. The debt type can affect your legal position.
| State | Open Account | Oral Agreement | Written Contract |
|---|---|---|---|
| Alabama | 3 years | 6 years | 6 years |
| Alaska | 3 years | 3 years | 3 years |
| Arizona | 3 years | 3 years | 6 years |
| Arkansas | 3 years | 3 years | 5 years |
| California | 4 years | 2 years | 4 years |
| Colorado | 6 years | 6 years | 6 years |
| Connecticut | 3 years | 3 years | 6 years |
| Delaware | 3 years | 3 years | 3 years |
| District of Columbia | 3 years | 3 years | 3 years |
| Florida | 4 years | 4 years | 5 years |
| Georgia | 4 years | 4 years | 6 years |
| Hawaii | 6 years | 6 years | 6 years |
| Idaho | 4 years | 4 years | 5 years |
| Illinois | 5 years | 5 years | 10 years |
| Indiana | 6 years | 6 years | 10 years |
| Iowa | 5 years | 5 years | 10 years |
| Kansas | 3 years | 3 years | 5 years |
| Kentucky | 5 years | 5 years | 10 years |
| Louisiana | 3 years | 10 years | 10 years |
| Maine | 6 years | 6 years | 6 years |
| Maryland | 3 years | 3 years | 3 years |
| Massachusetts | 6 years | 6 years | 6 years |
| Michigan | 6 years | 6 years | 6 years |
| Minnesota | 6 years | 6 years | 6 years |
| Mississippi | 3 years | 3 years | 3 years |
| Missouri | 5 years | 5 years | 10 years |
| Montana | 5 years | 5 years | 8 years |
| Nebraska | 4 years | 4 years | 5 years |
| Nevada | 4 years | 4 years | 6 years |
| New Hampshire | 3 years | 3 years | 3 years |
| New Jersey | 6 years | 6 years | 6 years |
| New Mexico | 4 years | 4 years | 6 years |
| New York | 6 years | 6 years | 6 years |
| North Carolina | 3 years | 3 years | 3 years |
| North Dakota | 6 years | 6 years | 6 years |
| Ohio | 6 years | 4 years | 6 years |
| Oklahoma | 3 years | 3 years | 5 years |
| Oregon | 6 years | 6 years | 6 years |
| Pennsylvania | 4 years | 4 years | 4 years |
| Rhode Island | 10 years | 10 years | 10 years |
| South Carolina | 3 years | 3 years | 3 years |
| South Dakota | 6 years | 6 years | 6 years |
| Tennessee | 6 years | 6 years | 6 years |
| Texas | 4 years | 4 years | 4 years |
| Utah | 4 years | 4 years | 6 years |
| Vermont | 6 years | 6 years | 6 years |
| Virginia | 3 years | 3 years | 5 years |
| Washington | 6 years | 3 years | 6 years |
| West Virginia | 5 years | 5 years | 10 years |
| Wisconsin | 6 years | 6 years | 6 years |
| Wyoming | 8 years | 8 years | 10 years |
Note: Different legal sources report slightly different categories. State statutes vary. The way “open account” vs. “oral” vs. “written contract” are defined also varies.
Please remember that the above information is provided as guidance only and must not be relied upon as legal advice. Individual states may have amended their legislation very recently.
Pre- and Post-Judgment Interest Rates: Key US Commercial States (Reference Only)
| State | Pre-Judgment Rate | Post-Judgment Rate | Fixed or Variable |
|---|---|---|---|
| California | 10% | 10% | Fixed |
| New York | 9% | 9% (commercial)* | Fixed |
| Texas | Follows post-judgment formula | ~6.75–8.50% (WSJ prime, monthly) | Variable |
| Florida | ~8.25% (Q2 2026) | ~8.25% (Q2 2026) | Variable (quarterly) |
| Illinois | 5% (written instruments) | 9% (commercial) | Fixed |
| Ohio | Statutory rate | 7% (2026) | Variable (annual) |
| Pennsylvania | 6% | 6% | Fixed |
| Georgia | 7% | Prime + 3% (~10.5%) | Variable (annual) |
| *New York reduced its post-judgment rate to 2% for consumer debt against natural persons in 2022. The 9% commercial rate is unchanged. | |||
What to Do If You Are Approaching the Time Limit
If you believe your debt may be close to the limitation period for the relevant state, act immediately. Once a debt becomes time-barred, there is no legal route to recovery through the courts.
Contact us for a free claim review and we will assess the position in the relevant state and advise on the fastest route to either settlement or legal action.
In many cases, instructing a local collection agent to make a formal demand can prompt payment without the need for litigation, but only if there is still time to act.
What If I Don’t Know Which State’s Law Applies?
In B2B disputes, the applicable state law is usually determined by the state where the debtor is incorporated or where the contract was performed.
If your contract includes a governing law clause (which it should), that clause will normally determine which state’s statute of limitations applies.
If there is no governing law clause, the position becomes more complex and you will need professional advice.
Notes About this Page
Interest rates shown are correct as of April 2026 and are provided for general guidance only. Variable rates change annually or more frequently. Where a written contract specifies an interest rate, that rate will usually apply instead of the statutory default. If you are pursuing a commercial debt in the US, always take advice from a qualified local attorney before relying on these figures.
For more information on collecting debts in the USA, contact Safe Collections for a free review of your claim.
