Vermont debt: usually six years, but check which rule applies
Vermont's time limits on debt are more tangled than most states', and even the state's own legislative researchers describe a range. What is clear is that a court will not raise the time limit for you, and that a judgment can keep a debt alive long after it would otherwise have expired.
Free check first. If a dispute letter makes sense, it costs $29 ($19 for military, veterans, seniors and people with disabilities) with three follow-ups.
Who is asking you to pay?
Look at the company name at the top of the letter or in the caller ID.
Vermont at a glance
- Most contracts
- 6 years (12 V.S.A. 511)
- Some written contracts
- Up to 8 years
- Credit cards
- Debated
- Consumer credit garnishment
- At most 15%
- Judgments
- 8 years, renewable, 12% interest
- Raising the time limit
- Up to you
General information about Vermont law, with sources below. Not legal advice.
Which Vermont time limit applies
Civil actions, including oral and most written contracts, must be brought within six years (12 V.S.A. 511). Vermont's limits are layered: the state's legislative research service describes six to eight years for written contracts and six for oral contracts and accounts, and some sources give eight years for certain written contracts (12 V.S.A. 507) and three for open accounts. Whether credit card debt is an open account or a written contract, and so which period applies, is debated.
Vermont does not require a debt collection complaint to state the applicable time limit or the date the claim arose, so you must raise the time limit yourself.
Compare the 6-year limit with every other state in our statute of limitations on debt by state table.
Limits vary a lot between states: by comparison, Alaska sets 3 years and Illinois sets 5 years for similar debts.
Judgments that outlast the debt
Judgments last eight years, can be renewed, and accrue interest at 12% a year, which can keep a debt alive far longer than the original time limit. So responding to a lawsuit matters even more than the time limit itself.
Already facing a garnishment in Vermont? Our wage garnishment guide covers exemption claims, hardship and how long a garnishment lasts.
Before paying anything in Vermont, read whether to pay a collection agency and how to request debt validation.
National collectors active in Vermont include Credence Resource Management and Credit Collection Services; our guides list their official dispute addresses.
Most debt lawsuits end in default because people do not respond; our page on what to do if a debt collector sues you explains how to avoid that in Vermont.
Trustee process: garnishment in Vermont
For a debt from a consumer credit transaction, the greater of 85% of weekly disposable earnings or 40 times the federal minimum wage is exempt (12 V.S.A. 3170(b)(3)), so at most 15% can be taken. Wage garnishment in Vermont is called "trustee process against wages", and the creditor pays the fees.
A written dispute inside the validation period makes a collector stop until it mails verification.
Questions people ask about debt in Vermont
What is the statute of limitations on debt in Vermont?
Usually six years under 12 V.S.A. 511, though Vermont's rules are layered and some sources give eight years for certain written contracts and three for open accounts.
What is the statute of limitations on credit card debt in Vermont?
Debated. It depends on whether a card is treated as an open account or a written contract.
How much of my wages can be garnished in Vermont?
For a consumer credit debt, the greater of 85% of weekly disposable earnings or 40 times the federal minimum wage is protected, so at most 15% can be taken.
How long does a judgment last in Vermont?
Eight years, renewable, with 12% annual interest.
Will the court check the time limit for me in Vermont?
No. A collection complaint does not have to state the time limit or the accrual date, so you must raise it yourself.