Continuing our series of articles on debt collection in the USA, this article covers the Statute of Limitations and Interest Rates on a state by state basis. This article is based on a recent review conducted by our American Debt Collection partner via their network of state based debt collection attorneys.
Before considering legal proceedings to recover an business debt in America we would recommend you first read the preceding three articles in this series.
Part 1 – USA Debt Collection Procedures
Part 2 – Ten Questions to ask before Suing a Debtor in the USA
Part 3 – USA Debt Collection – Court Witnesses
As 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 as 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.
Key
- Open Account = Standard credit account with no securities or guarantees
- Oral Agreement = A verbal contract. Note never offer credit on a verbal contract.
- Written Contract = A credit account usually backed up by a guarantee or letter of credit.
Alabama
- Open Account – 3 years
- Oral Agreement – 6 years
- Written Contract – 6 years
Alaska
- Open Account – 3 years
- Oral Agreement – 6 years
- Written Contract – 6 years
Arizona
- Open Account – 3 years
- Oral Agreement – 3 years
- Written Contract – 6 years
Arkansas
- Open Account – 3 years
- Oral Agreement – 3 years
- Written Contract – 5 years
California
- Open Account – 4 years
- Oral Agreement – 2 years
- Written Contract – 4 years
Colorado
- Open Account – 3 years
- Oral Agreement – 6 years
- Written Contract – 6 years
Connecticut
- Open Account – 3 years
- Oral Agreement – 3 years
- Written Contract – 6 years
Delaware
- Open Account – 3 years
- Oral Agreement – 3 years
- Written Contract – 3 years
District of Columbia
- Open Account – 3 years
- Oral Agreement – 3 years
- Written Contract – 3 years
Florida
- Open Account – 4 years
- Oral Agreement – 4 years
- Written Contract – 5 years
Georgia
- Open Account – 6 years
- Oral Agreement – 4 years
- Written Contract – 6 years
Hawaii
- Open Account – 6 years
- Oral Agreement – 6 years
- Written Contract – 6 years
Idaho
- Open Account – 4 years
- Oral Agreement – 4 years
- Written Contract – 5 years
Illinois
- Open Account – 5 years
- Oral Agreement – 5 years
- Written Contract – 10 years
Indiana
- Open Account – 6 years
- Oral Agreement – 6 years
- Written Contract – 10 years
Iowa
- Open Account – 5 years
- Oral Agreement – 5 years
- Written Contract – 10 years
Kansas
- Open Account – 3 years
- Oral Agreement – 3 years
- Written Contract – 6 years
Kentucky
- Open Account – 5 years
- Oral Agreement – 5 years
- Written Contract – 15 years
Louisiana
- Open Account – 3 years
- Oral Agreement – 10 years
- Written Contract – 10 years
Maine
- Open Account – 6 years
- Oral Agreement – 6 years
- Written Contract – 6 years
Maryland
- Open Account – 3 years
- Oral Agreement – 3 years
- Written Contract – 3 years
Massachusetts
- Open Account – 6 years
- Oral Agreement – 6 years
- Written Contract – 6 years
Michigan
- Open Account – 6 years
- Oral Agreement – 6 years
- Written Contract – 6 years
Minnesota
- Open Account – 6 years
- Oral Agreement – 6 years
- Written Contract – 6 years
Mississippi
- Open Account – 3 years
- Oral Agreement – 3 years
- Written Contract – 3 years
Missouri
- Open Account – 5 years
- Oral Agreement – 5 years
- Written Contract – 10 years
Montana
- Open Account – 8 years
- Oral Agreement – 5 years
- Written Contract – 6 years
Nebraska
- Open Account – 4 years
- Oral Agreement – 4 years
- Written Contract – 5 years
Nevada
- Open Account – 4 years
- Oral Agreement – 4 years
- Written Contract – 6 years
New Hampshire
- Open Account – 3 years
- Oral Agreement – 3 years
- Written Contract – 3 years
New Jersey
- Open Account – 6 years
- Oral Agreement – 6 years
- Written Contract – 6 years
New Mexico
- Open Account – 4 years
- Oral Agreement – 4 years
- Written Contract – 6 years
New York
- Open Account – 6 years
- Oral Agreement – 6 years
- Written Contract – 6 years
North Carolina
- Open Account – 3 years
- Oral Agreement – 3 years
- Written Contract – 3 years
North Dakota
- Open Account – 6 years
- Oral Agreement – 6 years
- Written Contract – 6 years
Ohio
- Open Account – 6 years
- Oral Agreement – 6 years
- Written Contract – 15 years
Oklahoma
- Open Account – 3 years
- Oral Agreement – 3 years
- Written Contract – 5 years
Oregon
- Open Account – 6 years
- Oral Agreement – 6 years
- Written Contract – 6 years
Pennsylvania
- Open Account – 4 years
- Oral Agreement – 4 years
- Written Contract – 4 years
Rhode Island
- Open Account – 4 years
- Oral Agreement – 10 years
- Written Contract – 5 years
South Carolina
- Open Account – 3 years
- Oral Agreement – 3 years
- Written Contract – 3 years
South Dakota
- Open Account – 6 years
- Oral Agreement – 6 years
- Written Contract – 6 years
Tennessee
- Open Account – 6 years
- Oral Agreement – 6 years
- Written Contract – 6 years
Texas
- Open Account – 4 years
- Oral Agreement – 4 years
- Written Contract – 4 years
Utah
- Open Account – 4 years
- Oral Agreement – 4 years
- Written Contract – 6 years
Vermont
- Open Account – 6 years
- Oral Agreement – 6 years
- Written Contract – 6 years
Virginia
- Open Account – 3 years
- Oral Agreement – 3 years
- Written Contract – 5 years
Washington
- Open Account – 3 years
- Oral Agreement – 3 years
- Written Contract – 6 years
West Virginia
- Open Account – 5 years
- Oral Agreement – 5 years
- Written Contract – 10 years
Wisconsin
- Open Account – 6 years
- Oral Agreement – 6 years
- Written Contract – 6 years
Wyoming
- Open Account – 8 years
- Oral Agreement – 8 years
- Written Contract – 10 years
Please remember the above is provided as guidance only and must not be relied upon as legal advice as individual states may have made amendments to their legislation in the interim.
If your company is considering legal action to recover a B2B Debt in the USA why not contact us and find out how we can help you avoid unnecessary and expensive litigation.
