Massachusetts Credit Card Debt: Statute of Limitations & Laws (2026)

How Massachusetts’s 6-year SOL works

M.G.L. c. 260 § 2 sets the 6-year statute of limitations for “actions of contract, other than those mentioned in section one.” Credit card agreements are treated as accounts and simple contracts under Massachusetts case law (see Premier Capital, LLC v. KMZ, Inc., SJC 2012). The 6-year window applies whether the original creditor or a debt buyer brings the action.

The clock starts at the date of breach, which Massachusetts case law identifies as the first missed payment after which no further payments are received. The Supreme Judicial Court in Cambridge Plating Co. v. NAPCO has applied this rule across consumer credit and commercial contract contexts.

The Massachusetts unfair practices safeguard: Under 940 CMR 7.07, a debt collector who initiates or threatens a lawsuit on a debt the collector knows or should know is time-barred commits an unfair and deceptive practice under M.G.L. c. 93A. Consumers can sue back for damages plus attorney’s fees plus a minimum statutory damage of $25 per violation, with treble damages for willful violation. This rule is stronger than the FDCPA disclosure requirement and one of the most protective state rules in the country.

When sued in Massachusetts District Court (under $25,000), Boston Municipal Court, or Superior Court, your answer deadline is 20 days from service. Failure to file an answer results in default judgment for the balance plus court costs plus post-judgment interest at the Massachusetts statutory rate of 12% per year under M.G.L. c. 235 § 8.

Real example timeline

David stopped paying a $13,500 American Express card in February 2020. The account charged off in August 2020 and was sold to LVNV Funding. LVNV filed suit in Suffolk Superior Court in March 2026, just over 6 years after the last payment. David filed an answer raising the SOL defense and a counterclaim under c. 93A and 940 CMR 7.07 for suing on time-barred debt. The court dismissed the underlying claim AND awarded David $1,200 plus attorney’s fees on the counterclaim because LVNV had pulled credit reports showing the breach date and knew the SOL had expired.

Settlement math for a typical Massachusetts balance

The pillar payoff calculator compares three paths for a Massachusetts resident facing a credit card debt: continue minimums, settle pre-judgment, or settle post-judgment.

Typical scenario: $14,500 balance, 24.99% APR, minimum payment of 2% of balance.

• Path 1, minimums only: 33 years to payoff, $25,600 in interest.
• Path 2, settle pre-judgment at 40%: $5,800 lump sum, account closed, charge-off remains on credit report 7 years from first delinquency.
• Path 3, post-judgment with homestead filed: if you have filed a Declaration of Homestead protecting your residence, the creditor’s leverage drops substantially; settlements often drop to 25-35% of balance.

When you are functionally judgment-proof in Massachusetts

Massachusetts’s combination of low 15% wage cap, high homestead, and exempt trustee-process funds creates real judgment-proof posture:

• W-2 wages: capped at 15% gross or amount over 50× FMW, often zero for low-wage workers
• Social Security, SSI, VA, federal pension: exempt under 42 U.S.C. § 407 and protected in bank accounts under 31 CFR Part 212
• Primary residence equity: up to $500,000 with declaration (M.G.L. c. 188 § 1) or $125,000 automatic
• Vehicle equity: up to $7,500 under M.G.L. c. 235 § 34
• Retirement accounts: exempt under M.G.L. c. 235 § 34A
• Public assistance, unemployment, workers’ comp: fully exempt

Wage garnishment via trustee process: 15% / 50× FMW

Under M.G.L. c. 246 § 28, trustee process for wages caps at the LESSER of:

• 15% of gross earnings, OR
• The amount by which weekly disposable earnings exceed 50 times the federal minimum wage ($362.50/week using $7.25 FMW).

For a worker earning $1,000/week gross with $200 weekly deductions ($800 disposable):

• 15% gross = $150/week
• Disposable minus (50 × $7.25) = $800 - $362.50 = $437.50

The lesser figure controls: $150/week. Massachusetts’s 50× FMW threshold is much higher than the federal 30× rule, so more low-wage workers are fully exempt. A worker earning $400/week disposable has nothing garnishable: $400 - $362.50 = $37.50 cap on the second prong, and 15% of $400 = $60, but the LESSER of the two prongs is $37.50, AND federal Title III’s separate 30× floor of $217.50/week disposable would mean the worker has $182.50 above the federal threshold. The state 50× ceiling controls.

Homestead Declaration: file it, then sleep better

Under M.G.L. c. 188, Massachusetts homeowners have two homestead options:

1. Automatic homestead: $125,000 of primary residence equity, protected without filing.
2. Declared homestead: $500,000 of equity (typical), or $1,000,000 for an elderly (age 62+) or disabled homeowner. Filed at the county registry of deeds. Fee around $35.

Filing a Declaration of Homestead is one of the simplest, highest-leverage actions a Massachusetts homeowner can take before a credit card lawsuit lands. The declaration protects from sale-of-home execution by a credit card judgment creditor up to the exempt equity amount. Senior mortgages, tax liens, mechanic’s liens, and child support/alimony obligations are NOT blocked by homestead.

Trustee process on bank accounts

Bank accounts in Massachusetts can be reached by trustee process, but M.G.L. c. 246 § 28A protects certain funds:

• Social Security, SSI, VA, federal pension: exempt under federal and state law
• Public assistance, unemployment, workers’ comp: exempt
• $2,500 of bank account balance: automatically protected from trustee process (with claim form filed by debtor)
• Funds traceable to wages within the prior 60 days: exempt

The federal 31 CFR Part 212 review by the bank applies in parallel: 2 months of federal benefit deposits are auto-protected up to roughly $3,360.

Massachusetts heavily regulates debt settlement

The Massachusetts Attorney General’s office has been one of the most aggressive consumer-protection enforcers in the nation against debt settlement firms. Under 940 CMR 7.00, debt settlement firms must:

• Disclose total fees and projected outcome before any payment
• Honor the consumer’s right to cancel
• Not collect advance fees before successful settlement (mirroring FTC Telemarketing Sales Rule)

For-profit debt management is highly restricted. The Massachusetts Division of Banks licenses approved providers. File complaints against unlicensed operators at the Massachusetts AG consumer complaints page.

Authoritative sources

• M.G.L. c. 260 § 2 (6-year contract SOL)
• M.G.L. c. 246 § 28 (trustee process wage cap)
• M.G.L. c. 188 (Homestead Act)
• 940 CMR 7.00 (Massachusetts debt collection regulations)
• Massachusetts Attorney General consumer complaints
• Massachusetts Division of Banks
• Cornell Law, 31 CFR Part 212 federal benefit protections

Neighboring states with different rules

• Connecticut credit card debt laws (6-year SOL, 25% wage cap)
• Rhode Island credit card debt laws (10-year SOL)
• New Hampshire credit card debt laws (3-year SOL)
• Vermont credit card debt laws (6-year SOL, 15% wage cap)
• New York credit card debt laws (3-year SOL, 10% wage cap)

Related tools

• Credit card payoff calculator to compare settlement vs minimums vs aggressive payoff
• Debt management plan calculator
• Can credit card debt garnish your wages?
• Can credit card debt be garnished from Social Security?

Frequently asked questions

What is the statute of limitations on credit card debt in Massachusetts?

Massachusetts has a 6-year statute of limitations on credit card debt under M.G.L. c. 260 § 2, the general statute of limitations for contract actions. The clock starts at the date of breach, typically the first missed payment leading to charge-off. Once 6 years pass without a lawsuit, the debt is time-barred. Note that 940 CMR 7.07 prohibits debt collectors from suing on a time-barred debt; doing so is a per-se unfair practice under Massachusetts consumer protection law.

Can Massachusetts creditors garnish my wages for credit card debt?

Yes, after a judgment, but Massachusetts has one of the most protective state caps. Under M.G.L. c. 246 § 28, wage garnishment via trustee process is limited to the LESSER of 15% of gross earnings OR the amount by which weekly disposable earnings exceed 50 times the federal minimum wage ($362.50/week threshold using $7.25 FMW). The 50× threshold is significantly higher than the federal 30× rule, making more low-wage Massachusetts workers fully exempt.

What is Massachusetts’s homestead exemption?

Massachusetts has one of the strongest homestead exemptions in the country under M.G.L. c. 188. Filing a Declaration of Homestead with the county registry of deeds protects up to $500,000 of primary residence equity for a typical homeowner, and up to $1,000,000 for elderly (age 62+) or disabled homeowners. An ‘automatic homestead’ provides $125,000 without a filed declaration. Credit card judgment creditors cannot force sale of a primary residence to recover equity below the exemption amount.

What is trustee process in Massachusetts?

Trustee process is the Massachusetts mechanism for both wage garnishment and bank levy, governed by M.G.L. c. 246. After judgment, the creditor serves a ‘trustee summons’ on the third party (employer or bank) commanding it to hold the debtor’s funds. The trustee is then ordered to pay the held funds to the creditor. For wages, the 15% gross / 50× FMW cap under § 28 applies. For bank accounts, certain account types are ‘exempt funds’ protected from trustee process under § 28A.

Does Massachusetts license debt settlement companies?

Yes. Debt settlement and debt management firms operating in Massachusetts must be licensed under M.G.L. c. 180 § 4A for non-profits, and for-profit debt management is highly restricted by 209 CMR 38.00. Massachusetts Attorney General enforcement actions under 940 CMR 7.00 have repeatedly targeted unlicensed debt-relief operators. Verify any firm with the Massachusetts Division of Banks before paying fees.