Vermont debt statute of limitations

Vermont limitation periods by type of debt

Vermont applies a general 6-year civil-action period to contract debt (§ 511).

What the Vermont statute says

“A civil action, except one brought upon the judgment or decree of a court of record of the United States or of this or some other state, and except as otherwise provided, shall be commenced within six years after the cause of action accrues and not thereafter.”
12 V.S.A. § 511

“A civil action, except one brought upon the judgment or decree of a court of record of the United States or of this or some other state, and except as otherwise provided, shall be commenced within six years after the cause of action accrues and not thereafter.”
12 V.S.A. § 511

“An action brought on a promissory note signed in the presence of an attesting witness shall be commenced within 14 years after the cause of action accrues, and not after.”
12 V.S.A. § 508

Does paying restart the clock in Vermont?

An acknowledgment or promise does not affect a limitations defense unless it is in writing and signed (12 V.S.A. § 591).

“An acknowledgment or promise shall not be held to affect a defense made under the provisions of this chapter, unless such acknowledgment or promise is in writing signed by the party affected thereby.”
12 V.S.A. § 591

If a creditor wins a judgment in Vermont

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 Vermont rules take over.

How long a judgment lasts

In Vermont, an action on a judgment, or to renew or revive it, must be brought as a new action within eight years after the judgment was rendered.

“Actions on judgments and actions for the renewal or revival of judgments shall be brought by filing a new and independent action on the judgment within eight years after the rendition of the judgment, and not after.”
12 V.S.A. § 506

Wage garnishment

In Vermont, for a judgment debt arising from a consumer credit transaction, 85% of weekly disposable earnings or 40 times the federal minimum hourly wage (whichever is greater) is exempt; for other debts the exemption is 75% or 30 times the federal minimum wage, and a court may exempt more if the debtor's reasonable expenses require it.

“if the judgment debt arose from a consumer credit transaction, as that term is defined by 15 U.S.C. § 1602 and implementing regulations of the Federal Reserve Board, 85 percent of the debtor’s weekly disposable earnings, or 40 times the federal minimum hourly wage, whichever is greater;”
12 V.S.A. § 3170(b)

Money in a bank account

Vermont exempts the debtor's interest in bank deposits or deposit accounts up to $700 from attachment and execution.

“the debtor’s interest, not to exceed $700.00 in value, in bank deposits or deposit accounts of the debtor;”
12 V.S.A. § 2740(15)

Small claims court

Vermont small claims procedure covers money claims up to $10,000, but small claims court has no jurisdiction over collection of consumer-credit or medical debts greater than $5,000.

“Notwithstanding this section or any other provision of law, the small claims court shall not have jurisdiction over actions for collection of any debt greater than $5,000.00 arising out of: (1) a consumer credit transaction as defined in 15 U.S.C. § 1679a; or (2) medical debt”
12 V.S.A. § 5531(a), (e)

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 Vermont 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 Vermont?

6 years for credit-card debt and 6 years on a written contract, under Vt. Stat. tit. 12, § 511. The period usually runs from your last payment or the date of default.

Does a payment restart the clock in Vermont?

An acknowledgment or promise does not affect a limitations defense unless it is in writing and signed (12 V.S.A. § 591).

How long does a court judgment last in Vermont?

In Vermont, an action on a judgment, or to renew or revive it, must be brought as a new action within eight years after the judgment was rendered. (12 V.S.A. § 506).

How much of my pay can be garnished in Vermont?

In Vermont, for a judgment debt arising from a consumer credit transaction, 85% of weekly disposable earnings or 40 times the federal minimum hourly wage (whichever is greater) is exempt; for other debts the exemption is 75% or 30 times the federal minimum wage, and a court may exempt more if the debtor's reasonable expenses require it. (12 V.S.A. § 3170(b)).

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

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.