Oregon Statute of Limitations on Debt Collection

When debts go unpaid for a long period of time, creditors may decide to institute a lawsuit against the consumer so that the creditor can obtain a judgment.  A judgment provides the ability to collect money involuntarily through wage garnishments or seizures of bank accounts or other property. 

Oregon has a law called the Unlawful Trade Practices Act. This law pertains to consumers who purchase goods for personal use from a merchant engaged in the sale or trade of such business.  The statute of limitations for debts owed falling under this category is a short, 1 year (ORS 646.638(5).

On the contrary, debtors involved in suits by a creditor must be aware of the lengthy statute of limitations for a breach of contract action, which is 6 years (ORS 12.080).  And judgments carry an even lengthier collection period of 10 years (ORS 12.070).