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.