California debt statute of limitations

California limitation periods by type of debt

Written contracts and book accounts are 4 years (§ 337); purely oral contracts are 2 years (§ 339).

What the California statute says

“Within four years: (a) An action upon any contract, obligation or liability founded upon an instrument in writing, except as provided in Section 336a;”
Cal. Civ. Proc. Code § 337(a)

“(b) An action to recover (1) upon a book account whether consisting of one or more entries; (2) upon an account stated based upon an account in writing, but the acknowledgment of the account stated need not be in writing; (3) a balance due upon a mutual, open and current account, the items of which are in writing;”
Cal. Civ. Proc. Code § 337(b)

“Within two years: 1. An action upon a contract, obligation or liability not founded upon an instrument of writing, except as provided in Section 2725 of the Commercial Code or subdivision 2 of Section 337 of this code;”
Cal. Civ. Proc. Code § 339(1)

Does paying restart the clock in California?

An acknowledgment or promise restarts the period only in a writing signed by the debtor, and a payment alone does not revive a claim that is already barred; a debt buyer may not sue once the period has run (Cal. Civ. Proc. Code § 360; Cal. Civ. Code § 1788.56).

“No acknowledgment or promise is sufficient evidence of a new or continuing contract, by which to take the case out of the operation of this title, unless the same is contained in some writing, signed by the party to be charged thereby,”
Cal. Civ. Proc. Code § 360

California’s own debt collection law

California's Rosenthal Fair Debt Collection Practices Act (Civ. Code § 1788 et seq.) prohibits debt collectors from using unfair or deceptive practices to collect consumer debts (and certain small-business debts).

“(b) It is the purpose of this title to prohibit debt collectors from engaging in unfair or deceptive acts or practices in the collection of consumer debts and small business debts and to require debtors to act fairly in entering into and honoring those debts, as specified in this title.”
Cal. Civ. Code § 1788.1(b)

If a creditor wins a judgment in California

The statute of limitations is a defense to the lawsuit. If the creditor sues within the deadline and wins — or wins by default because nobody answered — different California rules take over.

How long a judgment lasts

A California money judgment is enforceable for 10 years from entry (§ 683.020) and can be renewed by application for another 10 years, but a judgment on personal (consumer) debt under $50,000 or medical debt under $200,000 can be renewed only once, for five years (§§ 683.110(c), 683.120(c)).

“the filing of the application renews the judgment in the amount determined under Section 683.150 and extends the period of enforceability of the judgment as renewed for a period of 10 years from the date the application is filed. (c) Notwithstanding subdivisions (a) and (b), for a judgment identified in subdivision (c) of Section 683.110, a judgment creditor may renew the judgment only once.”
Cal. Civ. Proc. Code §§ 683.020, 683.110, 683.120

Wage garnishment

Since September 1, 2023, a California earnings withholding order for an ordinary debt can take no more than the lesser of 20% of weekly disposable earnings or 40% of the amount by which weekly disposable earnings exceed 48 times the state (or higher local) minimum hourly wage.

“the maximum amount of disposable earnings of an individual judgment debtor for any workweek that is subject to levy under an earnings withholding order shall not exceed the lesser of the following: (1) Twenty percent of the individual’s disposable earnings for that week. (2) Forty percent of the amount by which the individual’s disposable earnings for that week exceed 48 times the state minimum hourly wage in effect at the time the earnings are payable.”
Cal. Civ. Proc. Code § 706.050(a)

Money in a bank account

California automatically exempts (without a claim) money in a debtor's deposit account up to the minimum basic standard of adequate care for a family of four for Region 1, an amount adjusted annually by the Department of Social Services; it applies per debtor, not per account, and does not apply to wage, support, or state tax levies.

“Money in the judgment debtor’s deposit account in an amount equal to or less than the minimum basic standard of adequate care for a family of four for Region 1, established by Section 11452 of the Welfare and Institutions Code and as annually adjusted by the State Department of Social Services pursuant to Section 11453 of the Welfare and Institutions Code, is exempt without making a claim.”
Cal. Civ. Proc. Code § 704.220(a)

Small claims court

In California a natural person may bring a small claims action for up to $12,500, subject to statutory exceptions (other plaintiffs, such as businesses, have a lower general limit under § 116.220).

“the small claims court has jurisdiction in an action brought by a natural person, if the amount of the demand does not exceed twelve thousand five hundred dollars ($12,500), except as otherwise prohibited by subdivision (c) of Section 116.220 or subdivision (a) of Section 116.231.”
Cal. Civ. Proc. Code § 116.221

Time-barred debt in California

In California, once the § 337 period has run, no one may sue or start arbitration or another legal proceeding to collect the debt, and that period can be extended only under § 360.

“(d) When the period in which an action must be commenced under this section has run, a person shall not bring suit or initiate an arbitration or other legal proceeding to collect the debt. The period in which an action may be commenced under this section shall only be extended pursuant to Section 360.”
Cal. Civ. Proc. Code § 337(d)

What to do next

1. Find the date of your last payment or account activity — that is usually when the clock started.
2. If a collector contacted you in the last 30 days, dispute in writing first: the validation letter generator asks the collector to verify the debt without admitting it.
3. Do not pay or sign anything on an old debt until you know how California treats a payment (above).
4. If you are sued, respond by the deadline on the summons and raise the statute of limitations as a defense.

Common questions

How long can a debt collector sue me in California?

4 years for credit-card debt and 4 years on a written contract, under Cal. Civ. Proc. Code § 337; § 339. The period usually runs from your last payment or the date of default.

Does a payment restart the clock in California?

An acknowledgment or promise restarts the period only in a writing signed by the debtor, and a payment alone does not revive a claim that is already barred; a debt buyer may not sue once the period has run (Cal. Civ. Proc. Code § 360; Cal. Civ. Code § 1788.56).

Does California have its own debt collection law?

California's Rosenthal Fair Debt Collection Practices Act (Civ. Code § 1788 et seq.) prohibits debt collectors from using unfair or deceptive practices to collect consumer debts (and certain small-business debts). (Cal. Civ. Code § 1788.1(b)).

How long does a court judgment last in California?

A California money judgment is enforceable for 10 years from entry (§ 683.020) and can be renewed by application for another 10 years, but a judgment on personal (consumer) debt under $50,000 or medical debt under $200,000 can be renewed only once, for five years (§§ 683.110(c), 683.120(c)). (Cal. Civ. Proc. Code §§ 683.020, 683.110, 683.120).

How much of my pay can be garnished in California?

Since September 1, 2023, a California earnings withholding order for an ordinary debt can take no more than the lesser of 20% of weekly disposable earnings or 40% of the amount by which weekly disposable earnings exceed 48 times the state (or higher local) minimum hourly wage. (Cal. Civ. Proc. Code § 706.050(a)).

What if I am sued on an old debt in California?

Respond by the deadline on the summons. An expired limitations period is a defense you generally have to raise yourself; a court that hears nothing from you can enter a default judgment.