South Dakota keeps it simple for most debts: a creditor has six years to sue on a contract, whether it’s written or unwritten [1]. A contract for the sale of goods has four years [2]. Only a signed writing can extend an old debt by acknowledgment [3], and a South Dakota court judgment can be sued on for 20 years [4].
At a glance
| Type of claim | Deadline | Law |
|---|---|---|
| Contract, obligation or liability, express or implied | 6 years | SDCL 15-2-13(1) |
| Contract for the sale of goods | 4 years | SDCL 57A-2-725 |
| Judgment or decree of a South Dakota court | 20 years | SDCL 15-2-6(1) |
| Judgment of a federal court or another state's court | 10 years | SDCL 15-2-8(1) |
One deadline for most debts
Many states give written contracts more time than oral ones. South Dakota doesn’t draw that line for most debts: an action on a contract, obligation or liability, express or implied, has six years [1].
The exception is a contract for the sale of goods, which has four years from when the breach happens, whether or not the other side knew about it [2]. Whether a particular account counts as a sale of goods depends on what was bought and the paperwork behind it, so if you’re sued on an old account, it’s fair to ask what agreement the creditor is relying on.
When the clock starts
The six-year period runs from when the cause of action accrued [1].
Time out of state doesn’t count
If you were out of South Dakota when the debt came due, the deadline runs from when you return [6]. If you leave and live elsewhere after it comes due, the time you’re gone isn’t counted [6]. So a creditor may have longer to sue you in South Dakota than the basic deadline suggests.
Acknowledging an old debt
Under South Dakota law, an acknowledgment or a new promise to pay isn’t enough to take a debt out of the statute of limitations unless it’s in writing and signed by the person being charged [3]. The same section adds that this writing rule doesn’t change the effect of a payment of principal or interest [3].
What “time-barred” means
A debt is time-barred once the deadline to sue has run out. Collectors can still contact you and ask for payment, but they can’t sue or threaten to sue over a time-barred debt [8].
The deadline isn’t automatic in court, though. If you’re sued on an old debt, you have to raise the statute of limitations yourself [8]. Read the papers, answer by the deadline, and say the debt is too old. If you don’t respond, the court can enter a judgment against you. In South Dakota, a lawsuit counts as started against a defendant when the summons is served on that defendant [9].
Judgments
Once a creditor wins, an action on a judgment of a South Dakota court can be brought within 20 years [4]. For a judgment from a federal court or another state, it’s 10 years [5].
A docketed judgment is a lien on real property in that county, but not on your homestead, for 10 years from docketing [10]. The creditor can renew a money judgment by filing an affidavit before those 10 years run out [11].
The credit report clock is different
How long an old debt shows on your credit report is a federal rule, not a South Dakota one. Under the Fair Credit Reporting Act, most accounts placed for collection or charged off can’t be reported once they’re more than seven years old, counted from 180 days after the delinquency began [7]. So a debt can drop off your report while it can still be collected in court in South Dakota, or stay on your report after South Dakota’s deadline has passed.
Accurate information can stay for the full reporting period. If something is wrong, such as an old debt listed with the wrong dates or past the seven-year limit, you have the right to dispute it with the credit bureaus for free. For more, see BestAmerica’s guide to how long negative items stay on a credit report.
Want a professional to handle it? A credit repair company can go through your reports from all three bureaus, spot old debts that are re-aged, duplicated or reported past the time limit, and send and follow up on the disputes for you, round after round, which takes a lot of paperwork off your plate. Federal law protects you when you hire one: you get a written contract that lays out the services, the total cost and how long it will take [13], you can cancel within three business days [14], and the company can’t charge you until it has performed the services it promised [12]. Accurate, current information can’t be removed, and results vary. See BestAmerica’s guide to how credit repair works.
Where to get help
- Legal aid: free legal help may be available if you’re sued and your income qualifies.
- Consumer Financial Protection Bureau: takes complaints about debt collectors [8].
- A consumer attorney: worth a call if you’re sued on an old debt.
Sources
- SDCL 15-2-13: Six-year limitation (contract, obligation or liability)
- SDCL 57A-2-725: Statute of limitations in contracts for sale
- SDCL 15-2-29: Writing required for acknowledgment or promise
- SDCL 15-2-6: Actions on state judgments (20 years)
- SDCL 15-2-8: Judgment of federal or foreign court (10 years)
- SDCL 15-2-20: Tolling during absence of defendant from state
- 15 U.S.C. § 1681c (Fair Credit Reporting Act, how long items stay)
- CFPB: What is a statute of limitations on a debt?
- SDCL 15-2-30: Commencement of action by service of summons
- SDCL 15-16-7: Lien of docketed judgment, duration
- SDCL 15-16-33: Renewal of judgments by affidavit
- 15 U.S.C. § 1679b, Prohibited practices (Cornell LII)
- 15 U.S.C. § 1679d, Credit repair organizations contracts (Cornell LII)
- 15 U.S.C. § 1679e, Right to cancel contract (Cornell LII)
Next steps
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Credit Saint
If an old debt or another item on your credit report looks wrong, Credit Saint can help you challenge it with the credit bureaus.
You can also dispute errors yourself, for free, with Equifax, Experian and TransUnion. No company can legally remove accurate, timely information, and results vary.
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Bolster is a free app for keeping an eye on your credit and building credit history over time.
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See Credit Squad →Common questions
What is the statute of limitations on debt in South Dakota?
Six years for most debts. South Dakota law gives six years to bring an action on a contract, obligation or liability, express or implied, so it doesn't matter whether the agreement was written. A contract for the sale of goods has four years under South Dakota's version of the Uniform Commercial Code.
Can an old debt be revived in South Dakota?
A new acknowledgment or promise to pay can take a debt out of the statute of limitations only if it's in writing and signed by the person being charged. The same law says the writing rule doesn't change the effect of a payment of principal or interest, so be careful about making a payment on an old debt before getting advice.
Does moving out of South Dakota stop the clock?
It can. If you leave and live outside South Dakota after a debt comes due, the time you're gone isn't counted toward the deadline. If you were already out of state when the debt came due, the deadline runs from when you return.
How long does a judgment last in South Dakota?
An action on a judgment of a South Dakota court can be brought within 20 years, and on a judgment from a federal court or another state within 10 years. A docketed judgment is a lien on real property other than a homestead for 10 years, and the creditor can renew it by affidavit before those 10 years run out.
How long can a collection account stay on my credit report?
That's a separate federal rule. Under the Fair Credit Reporting Act, most collection and charged-off accounts can be reported for seven years, starting 180 days after the delinquency began, no matter what South Dakota's deadline to sue is.