How long does a creditor have to collect on a judgment against me?

Question

How long does a creditor have to collect on a judgment against me?

Answer

That depends on the laws of your state, and the method that the creditor uses to try and collect on that judgment. Usually, judgments are valid for several years before they expire or “lapse.” In some states, a judgment is effective between five to seven years. In other states, like New York, it can be twenty years or longer.

The time period is usually starts running from:

• the date of entry of the judgment

• the date that a creditor last tried to execute (collect) on the judgment, or

• the later date of either event.

(To learn more about judgments, including how creditors get them, see What Is a Money Judgment? To learn how creditors collect judgments, see How Creditors Enforce Judgments.)

Renewing a Judgment Restarts the Cycle

Potentially, a judgment can effectively become permanent. That is because many states allow creditors to renew their judgments. That means that if a creditor gets a court order or files an affidavit or other document, it can renew the judgment for another cycle. In some states, creditors are allowed to renew a judgment once or twice. In others, there's no limit.

When a Judgment Lapses

If a judgment creditor does not renew a judgment on time, then that judgment lapses. A judgment may also lapse if the creditor doesn't do anything to execute on that judgment for a certain period of time. When a judgment lapses (or becomes “dormant”), the creditor can no longer legally enforce it. That means a creditor cannot:

• garnish your wages

• attach your bank account

• seize your property, or

• make you appear for a debtor's examination.

Reviving Dormant or Lapsed Judgments

If a judgment against you has lapsed, that doesn't mean it has gone away forever. That's because many states allow creditors to “revive” dormant judgments. There might be a time limit for a creditor to revive a dormant judgment. State laws vary on how the time period is calculated. The clock may begin to run from the time the creditor last tried to collect on the judgment, or it might run from the time the judgment later went dormant.

Can a Debt Collector Try to Collect on a Lapsed Judgment?

Under the Fair Debt Collection Practices Act (FDCPA), a bill collector may still contact you on a lapsed judgment and ask you to pay. However, a debt collector cannot threaten to garnish your wages or take other legal action to pressure you into settling that old judgment. If a debt collector lies to you about the age of the judgment and whether it lapsed under your state's laws, then that also might be a violation of the FDCPA.

How Long Will a Judgment Appear on My Credit Report?

Under the Fair Credit Reporting Act (FCRA), a judgment can show up on your credit report for at least seven years. It can show up even longer, depending on how much time your state's laws give effect to that judgment. For example, if a judgment was entered against you in California, it can show up on your credit report for ten years, or even 20 years if the creditor renewed it on time.