North Carolina Statute of Limitations on Debt Collection

The statute of limitations is an established rule that sets a time limit within which a creditor is able to sue you for payment of a debt. The amount of time that a creditor has to sue you is different for each state and if the time that is allowed by your state has passed, a creditor is unable to sue you for the debt. In North Carolina:

• Contract (express or implied), not under seal: 3 years
• Contract and sale of personal property under seal: 10 years
• Judgments: 10 years
• Open account: 3 years

A payment that is made after the statute of limitations has ended will renew only if at the time of payment, there is a circumstance that concluded that the consumer understood their responsibility to pay. If the consumer makes a partial payment on an open account, the statute of limitations will be restarted for a purchase made within 3 years of the payment date.

If one debtor makes a partial payment, it will not renew the statute of limitations against another co-debtor, unless the co-debtor has approved of or ratified the partial payment. A partial payment will also not have any effect on the 10 year statute of limitations on renewing or enforcing a judgment.

The statute of limitations will be tolled for enforcing a contract or judgment relating to bankruptcy, death or disability.

If you want to get any more information or if you have questions about the Statute of Limitations in North Carolina, contact The Consumer Advocacy Center at 312-782-5808.