Statute of Limitations on Debt in Michigan: What Collectors Can and Can't Do

If a debt collector is calling you about an old debt, one of the first questions to ask is whether that debt is still within Michigan's statute of limitations — the window of time a creditor or collector can sue you in court to collect it. Once that window closes, the debt doesn't disappear, but your legal exposure changes significantly. This guide explains how the Michigan statute of limitations on debt works, what it means for you, and how to protect yourself under federal law.

Written and maintained by Andrea. Last updated: July 2025. This is general information, not legal advice — consult a licensed attorney in your state for guidance on your specific situation.

What Is a Statute of Limitations on Debt?

A statute of limitations (SOL) is a legal deadline. In the context of debt, it sets the maximum number of years a creditor or debt collector can file a lawsuit against you to force repayment. After that period expires, a court can dismiss the lawsuit — but only if you raise the expired SOL as a defense. The debt itself still exists; collectors can still contact you and ask you to pay. What they lose is the ability to win a court judgment against you based on that debt alone.

A debt past its statute of limitations is sometimes called a "time-barred debt" or, colloquially, "zombie debt." Zombie debt collectors buy old accounts cheaply and attempt to collect anyway — sometimes hoping you'll make a payment or acknowledge the debt in writing, which can restart the clock in some states. Michigan residents should verify with a licensed attorney or their state Attorney General's office whether any action could reset the limitations period.

Michigan's Statute of Limitations by Debt Type

Michigan sets different limitation periods depending on the type of agreement the debt came from. The distinction between a written contract and an oral agreement matters, as does whether the debt is based on an open account like a credit card. The figures below reflect what Michigan law currently provides, but these limits can change through legislation or court interpretation — always confirm the current rule with the Michigan Attorney General's office, the CFPB, or a licensed Michigan attorney before acting on them.

Important: these ranges are what attorneys and consumer advocates commonly cite for Michigan, but the exact period that applies to your specific debt depends on factors like when the debt was last active, what state's law governs your contract, and how Michigan courts have interpreted the relevant statute. Verify with the CFPB (consumerfinance.gov), the Michigan Attorney General's consumer protection division, or a licensed attorney.

When Does the Clock Start — and What Resets It?

The statute of limitations clock typically starts running from the date of your last payment or the date the account went into default — whichever is relevant under the contract terms. This is called the "accrual date," and it is often the most disputed fact in time-barred debt cases. Collectors may try to argue the clock started later than you believe.

Certain actions can potentially restart or "toll" (pause) the clock. In Michigan, making a new payment on an old debt, entering a new repayment agreement, or — depending on how courts interpret your actions — acknowledging the debt in writing could restart the limitations period. This is why consumer advocates warn against making even a small "good faith" payment on a very old debt without first understanding the legal consequences. Talk to a Michigan attorney before paying anything on a debt you believe may be time-barred.

Your Federal Rights Under the FDCPA

The Fair Debt Collection Practices Act/FDCPA is a federal law that applies to third-party debt collectors — companies hired to collect a debt you owe to someone else, or debt buyers who purchased your account. It does not apply to the original creditor collecting its own debt. The FDCPA gives you specific rights regardless of whether the debt is time-barred:

The CFPB has issued guidance that collectors should disclose when a debt is time-barred. If a collector threatens to sue you on a very old debt and you believe it is past Michigan's statute of limitations, that threat may itself be an FDCPA violation. Keep records of every call, letter, and voicemail.

Time-Barred Debt: What Collectors Can Still Do

An expired statute of limitations does not make a debt illegal to collect — it only removes the collector's ability to sue and win a judgment. A collector can still:

What they cannot legally do (under the FDCPA) is falsely threaten a lawsuit they cannot win, or use deceptive tactics to pressure payment. If you receive a lawsuit summons — even on a debt you believe is time-barred — do not ignore it. You must respond by the court's deadline or a default judgment can be entered against you regardless of whether the debt is old. If you are sued, contact a consumer law attorney or legal aid organization immediately.

How to Respond to a Collector Contacting You About Old Michigan Debt

If a collector contacts you about a debt and you are not sure whether it is valid, yours, or within the statute of limitations, take these steps before doing anything else:

Debt Validation: Making the Collector Prove It

A debt validation letter (sometimes called a verification letter) is a written request you send to the collector asking them to prove the debt is legitimate. Under the FDCPA, collectors are required to provide validation information. Sending this letter within the applicable window after first contact triggers an obligation for the collector to stop collection activity until they respond. Even outside that window, a validation request puts the collector on notice that you are aware of your rights.

Your validation letter should ask for: the name of the original creditor, the amount owed and how it was calculated, proof that the collector is licensed to collect in Michigan, and documentation showing they have the legal right to collect the debt. Keep a copy of everything you send and receive. Debt Collector Pushback provides a free debt validation letter template you can adapt for your situation — labeled for self-help informational use only, not a substitute for legal counsel.

Michigan-Specific Consumer Protections

Michigan has its own state-level consumer protection laws that can work alongside the federal FDCPA. The Michigan Collection Practices Act/MCPA places additional requirements and restrictions on debt collectors operating in Michigan, including some rules that apply to original creditors — a gap the federal FDCPA does not cover. The Michigan Attorney General's Consumer Protection division handles complaints about debt collectors violating state law.

State law can be more protective than federal law in some areas. For example, Michigan may provide additional restrictions on when and how collectors can contact you. Because state law changes and court interpretation matters, verify the current protections with the Michigan Attorney General's office at michigan.gov/ag or speak with a Michigan consumer law attorney. Do not rely solely on what a collector tells you your rights are.

How Time-Barred Debt Affects Your Credit Report

The statute of limitations for lawsuits and the credit reporting period are two separate clocks. Under federal fair credit reporting law, most negative items — including collection accounts — can appear on your credit report for a limited period from the date of first delinquency, regardless of whether the SOL has expired. The credit reporting period does not reset when a debt is sold to a new collector. Verify the exact current credit reporting period with the CFPB at consumerfinance.gov.

If a collection account appears on your credit report past its reporting period, or if information on the account is inaccurate, you have the right to dispute it with the credit bureaus (Equifax, Experian, TransUnion) directly. The bureau must investigate and remove inaccurate or unverifiable information.

When You Get Sued Over a Debt in Michigan

If you receive a court summons or complaint about a debt, do not ignore it — even if you believe the debt is old, invalid, or not yours. Failing to respond by the court's deadline can result in a default judgment against you, which gives the collector new legal tools (like wage garnishment or bank levies) regardless of the merits of the underlying debt. An expired statute of limitations is a legal defense you must raise — it is not automatic.

If you are sued and believe the debt is time-barred, contact a Michigan consumer law attorney or your local legal aid organization right away. Many consumer attorneys handle FDCPA cases on a contingency basis (they get paid if you win), so cost should not stop you from getting a consultation. Find legal aid resources through the Michigan Legal Help website at michiganlegalhelp.org.

Where to File a Complaint

If a debt collector has violated your rights — threatening lawsuits on time-barred debt, calling at illegal hours, using abusive language, or providing false information — you can file complaints with: