Why State Law Matters for Your Debt
Federal law sets the floor for consumer debt protection (the FDCPA, federal wage garnishment cap, federal bankruptcy exemptions). State law sets the ceiling, and in most cases the state ceiling is what actually controls. A statute of limitations that expired in your state means no more lawsuits regardless of what federal law says. A homestead exemption that protects $500,000 of equity in Massachusetts produces a wildly different bankruptcy outcome than the $5,000 homestead in Tennessee. Which state's law applies usually depends on where you live now, where you signed the contract, and which state's court has the case.
This directory covers the four state-law variables that matter most for consumer debt cases:
- Statute of limitations: how long a creditor or debt buyer has to sue you for a credit card, written contract, or other consumer debt after default.
- Wage garnishment cap: how much of your paycheck a judgment creditor can take, and which states ban most consumer wage garnishment entirely.
- Bankruptcy exemptions: the homestead, motor vehicle, and wildcard amounts that determine what you keep if you file Chapter 7 or Chapter 13.
- State debt collection statute: whether your state has its own FDCPA companion law that extends protection beyond the federal floor (most do).
State-by-State Directory
Click any state for the full breakdown. The table shows the credit card statute of limitations, headline homestead exemption, and the wage garnishment rule.
| State | Credit Card SOL | Homestead | Wage Garnishment |
|---|---|---|---|
| Alabama | 3 years | $16,450 ($32,900 married) | 25 percent of disposable earnings (federal cap applies) |
| Alaska | 3 years | $72,900 | 25 percent of disposable earnings |
| Arizona | 6 years | $400,000 | 25 percent of disposable earnings |
| Arkansas | 5 years | Unlimited (urban: 1/4 acre; rural: ... | 25 percent of disposable earnings |
| California | 4 years | $362,575 to $725,150 (homestead aut... | 25 percent of disposable earnings |
| Colorado | 6 years | $250,000 ($350,000 for elderly or d... | 20 percent of disposable earnings (lower than federal c |
| Connecticut | 6 years | $250,000 | 25 percent of disposable earnings or 40 times state min |
| Delaware | 3 years | $125,000 | 15 percent of disposable earnings (one of the lowest ca |
| Florida | 5 years | Unlimited (1/2 acre urban; 160 acre... | Head of household: wages fully exempt up to $750/week n |
| Georgia | 6 years | $21,500 ($43,000 joint) | 25 percent of disposable earnings |
| Hawaii | 6 years | $30,000 ($30,000 if head of family;... | 25 percent of disposable earnings |
| Idaho | 5 years | $175,000 | 25 percent of disposable earnings |
| Illinois | 5 years | $15,000 ($30,000 joint) | 15 percent of disposable earnings (lower than federal c |
| Indiana | 6 years | $22,750 ($45,500 joint) | 25 percent of disposable earnings |
| Iowa | 5 years | Unlimited (1/2 acre urban; 40 acres... | federal cap or sliding scale based on income (often mor |
| Kansas | 3 years | Unlimited (1 acre urban; 160 acres ... | 25 percent of disposable earnings |
| Kentucky | 5 years | $5,000 | 25 percent of disposable earnings |
| Louisiana | 3 years | $35,000 ($75,000 if disability or 6... | 25 percent of disposable earnings |
| Maine | 6 years | $80,000 ($160,000 elderly/disabled) | 25 percent of disposable earnings |
| Maryland | 3 years | $25,000 (Bankruptcy-only exemption) | federal cap or wages exceeding 30 times state minimum w |
| Massachusetts | 6 years | $500,000 (automatic) or $1,000,000 ... | 25 percent of disposable earnings |
| Michigan | 6 years | $46,125 ($69,200 if 65+ or disabled... | 25 percent of disposable earnings |
| Minnesota | 6 years | $510,000 ($1,275,000 for agricultur... | 25 percent of disposable earnings |
| Mississippi | 3 years | $75,000 (160 acres maximum) | 25 percent of disposable earnings |
| Missouri | 5 years | $15,000 ($5,000 if mobile home) | 25 percent of disposable earnings |
| Montana | 5 years | $378,560 | 25 percent of disposable earnings |
| Nebraska | 4 years | $60,000 (160 acres rural; 2 lots ur... | 25 percent of disposable earnings (15 percent for head |
| Nevada | 4 years | $605,000 | 25 percent of disposable earnings |
| New Hampshire | 3 years | $120,000 | 25 percent of disposable earnings |
| New Jersey | 6 years | None (limited bankruptcy exemption ... | 10 percent of disposable earnings (one of the lowest ca |
| New Mexico | 4 years | $150,000 | 25 percent of disposable earnings |
| New York | 3 years | $179,975 to $204,825 (varies by cou... | 10 percent of gross or 25 percent of disposable, whiche |
| North Carolina | 3 years | $35,000 ($60,000 if 65+ unmarried) | Generally prohibited |
| North Dakota | 6 years | $100,000 | 25 percent of disposable earnings |
| Ohio | 6 years | $161,375 ($322,750 joint) | 25 percent of disposable earnings |
| Oklahoma | 3 years | Unlimited (1 acre urban; 160 acres ... | 25 percent of disposable earnings |
| Oregon | 6 years | $40,000 ($50,000 joint) | 25 percent of disposable earnings |
| Pennsylvania | 4 years | None (no state homestead exemption;... | Generally prohibited |
| Rhode Island | 10 years | $500,000 | 25 percent of disposable earnings |
| South Carolina | 3 years | $67,100 ($134,200 joint) | Generally prohibited |
| South Dakota | 6 years | Unlimited (1 acre town; 160 acres r... | 20 percent of disposable earnings (lower than federal c |
| Tennessee | 6 years | $5,000 ($7,500 joint) | 25 percent of disposable earnings |
| Texas | 4 years | Unlimited (10 acres urban; 100 acre... | Generally prohibited |
| Utah | 4 years | $43,300 ($86,600 joint) | 25 percent of disposable earnings |
| Vermont | 6 years | $125,000 | 25 percent of disposable earnings or 30 times federal m |
| Virginia | 3 years | $25,000 ($50,000 joint; additional ... | 25 percent of disposable earnings |
| Washington | 6 years | $125,000 to $729,600 (varies by cou... | 25 percent of disposable earnings |
| West Virginia | 10 years | $35,000 ($70,000 joint) | 20 percent of disposable earnings (lower than federal c |
| Wisconsin | 6 years | $75,000 ($150,000 joint) | 20 percent of disposable earnings (lower than federal c |
| Wyoming | 8 years | $20,000 ($40,000 joint) | 25 percent of disposable earnings |
How to Use This Directory
State law applies to debt collection lawsuits, judgment enforcement, and bankruptcy exemptions in different ways. The most common decision points:
- Sued by a debt collector: the SOL applies based on the state where you currently live or where you signed the contract. If the SOL has expired in your state, the case can typically be dismissed. See our collection defense guide for the full playbook.
- Wages being garnished: the cap is the lower of the federal limit (25 percent of disposable income) and your state's limit. Four states (North Carolina, Pennsylvania, South Carolina, Texas) prohibit most consumer wage garnishment.
- Considering bankruptcy: your state's exemption rules determine what property you keep. Some states allow you to choose federal exemptions; most require state exemptions. See our bankruptcy overview for how exemptions interact with discharge.
Important Caveats
Dollar amounts and statute citations on these pages are intended as a starting point, not a substitute for current legal advice. Several variables change the picture for any specific case:
- Many states adjust exemption amounts periodically for inflation. The figures here are May 2026 figures; verify against the current state code before relying on them in court.
- SOL on a specific debt depends on what kind of debt it is (credit card versus written contract versus oral contract versus promissory note). Many states have different deadlines for each.
- The clock can be restarted by partial payment, written acknowledgment, or (in some states) verbal admission. The safest move on a time-barred debt is to do nothing that can restart the clock.
- Some states have unique rules for specific debt types (medical debt, student loans, automobile deficiency balances). These are noted on individual state pages where they apply.
Related Guides
See also how to handle a debt collection lawsuit, bankruptcy overview, bankruptcy versus settlement, and our Q&A library for state-specific questions.