Statute of Limitations on Debt in Michigan: The 6-Year Rule

In Michigan, the deadline a creditor or debt collector has to sue over an unpaid debt is set by the state’s statute of limitations. This article is one piece of Michigan’s consumer protection framework, and it covers the six-year limit that applies to most debts, when the clock starts, what a “time-barred” debt is, what can restart the clock, and the separate ten-year period that applies once a creditor wins a court judgment.

The six-year limit for most Michigan debts

Michigan sets a six-year deadline for lawsuits to collect most consumer debts. Under MCL 600.5807(9), the period of limitations is 6 years for an action to recover damages or money due for breach of contract. Because courts treat an unpaid balance as a broken promise to pay, this six-year contract period is the rule that governs the common consumer debts people ask about.

That six-year window covers credit card balances, medical bills, personal loans, auto-loan deficiencies after a repossession, and ordinary charge accounts. A dispute over the condition of a vehicle itself, rather than the money owed on it, turns on warranty rules instead of this debt deadline; for a used purchase, that means the question of whether Michigan’s lemon law covers a used car. Michigan applies the same six-year period whether the agreement was written or spoken, which is different from states that give oral contracts a shorter deadline. A handful of specialized obligations run on their own clocks, but for standard consumer debt the six-year period is the starting point.

When the six-year clock starts

The six-year period runs from the date the claim accrues, not the date the account was opened. MCL 600.5827 provides that a claim accrues at the time the wrong on which it is based occurred. For an unpaid debt, that is generally the date of default: the first missed payment the borrower never cured.

Revolving accounts follow a related rule. Under MCL 600.5831, a claim on a mutual and open account accrues at the time of the last item proved in the account. For a credit card or similar open account, courts often measure that from the last transaction or the last payment before the account went delinquent. The practical effect is that the clock usually starts around the time of the final activity on the account, then runs for six years.

Pinning down the exact accrual date matters because it fixes the day the six years begin. Account statements, payment histories, and the original agreement are the records that establish when the last activity occurred.

What a time-barred debt means

Once the six-year period passes without a lawsuit, the debt is described as time-barred. A time-barred debt is one the creditor can no longer sue on successfully, but the underlying obligation still exists. The federal Consumer Financial Protection Bureau explains that collectors can still contact a borrower about a time-barred debt and, in many situations, still ask for payment.

The limitation period works as an affirmative defense, which means a Michigan court does not throw the case out on its own. The person being sued has to raise the expired six-year period in the answer to the lawsuit. A defendant who ignores the summons, or appears but never mentions the deadline, can have a judgment entered even on a debt older than six years.

Federal rules limit how collectors handle old debt. The Fair Debt Collection Practices Act bars debt collectors from using false or misleading representations, and Bureau regulations prohibit collectors from suing or threatening to sue on a debt they know is time-barred. A borrower who believes a collector crossed those lines can file a complaint with the Michigan Attorney General, whose Consumer Protection Team reviews unfair and deceptive business practices.

What can restart the six-year clock

Certain actions can reset the six-year period back to zero or start a fresh one. Making a payment on an old debt, or acknowledging the debt in writing with a new promise to pay, can restart the limitation clock. The Consumer Financial Protection Bureau warns that even a small payment or a written promise can restart the statute of limitations on an otherwise expired debt.

This is why the age of a debt and any recent activity on it are worth confirming before responding to a collection demand. A partial payment made to a collector on a six-year-old account can revive a claim that was already time-barred, giving the creditor a new window to sue. The factors that determine whether the clock restarts include whether a payment was made, whether the borrower signed a new agreement, and what the account records show about recent activity.

Once a creditor has a court judgment

The six-year limit applies to filing the original lawsuit. After a creditor sues and wins, a different and longer clock takes over. Under MCL 600.5809(3), the period of limitations is 10 years for an action founded on a judgment of a court of record, measured from the date the judgment is entered. Within that period, the creditor can bring an action on the judgment to obtain a new judgment, effectively renewing it for another ten years.

Which court entered the judgment affects the length. A judgment from the district court entered on or after May 25, 1973 is treated as a court of record and carries the ten-year period, but a judgment from the small claims division is a court not of record and runs for six years. During the life of a judgment, the creditor can pursue collection tools such as wage garnishment and bank account levies.