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State Collection Laws

Comprehensive 50-state reference for commercial collections: Interest rates, statutes of limitations, bad-check remedies, and garnishment rules.

Interest Rates

Legal & judgment interest by state for commercial debt

Statutes of Limitations

Time limits for written, oral, open accounts & judgments

Bad-Check Penalties

State penalties and recovery for dishonored checks

Garnishment Exemptions

Federal & state wage garnishment protections

Federal Baseline & Disclaimer

Federal law (wages): Exempts 75% of disposable earnings per week, or 30× federal minimum hourly wage—whichever is greater. Where federal law is more protective, it supersedes state rules.

Not legal advice: This is a practical reference for commercial claims. Laws change—verify with counsel before pursuing litigation, garnishment, or interest accrual.

Search States
Showing 51 of 51 states
Alabama (AL)
Interest:
Legal:6%
Judgment:12%
Statute of Limitations:
Open:3 yrs
Written:6 yrs
Judgment:Domestic 20 yrs; Foreign 20 yrs
Bad-Check Penalties:
Actual bank charges
Standard notice recommended
Wage Garnishment:
75% of wages exempt
Alaska (AK)
Treble Dmg
Interest:
Legal:10.5%
Judgment:10.5% (or contract)
Statute of Limitations:
Open:Sale of goods 4 yrs
Written:6 yrs
Judgment:Domestic/Foreign 10 yrs
Bad-Check Penalties:
≥$100 or 3× (not >$1,000 over face)
Statutory notice required
Wage Garnishment:
Greater of 75% net or $402.50/wk
Arizona (AZ)
Interest:
Legal:10% (contract may control)
Judgment:10%
Statute of Limitations:
Open:3 yrs
Written:6 yrs (AZ) / 4 yrs (outside AZ)
Judgment:Domestic 5 yrs (renewable); Foreign 4 yrs
Bad-Check Penalties:
2× face + costs/fees (notice required)
Notice required
Wage Garnishment:
Federal baseline applies
Arkansas (AR)
Interest:
Legal:6% or Fed discount +5
Judgment:≤ Fed+5 or 10% (lesser)
Statute of Limitations:
Open:3 yrs
Written:5 yrs; UCC 4 yrs
Judgment:Domestic/Foreign 10 yrs (renewable)
Bad-Check Penalties:
2× check (after 30-day demand; may begin with $15 service charge)
30-day demand required
Wage Garnishment:
$500 head-of-family / $200 single personal-property protection
California (CA)
Treble Dmg
Interest:
Legal:10%
Judgment:10% (unless contracted)
Statute of Limitations:
Open:2 yrs (no writing); 4 yrs (reduced to writing)
Written:4 yrs
Judgment:Domestic 10 yrs (renewable); Foreign 10 yrs (renewable)
Bad-Check Penalties:
Treble damages ($100 min / $1,500 max) per check
Statutory notice required
Wage Garnishment:
Federal baseline; necessities exemptions
Colorado (CO)
Treble Dmg
Interest:
Legal:8%
Judgment:8% (or contract)
Statute of Limitations:
Open:6 yrs; Goods/Services 3 yrs
Written:6 yrs
Judgment:Domestic 20 yrs (District) / 6 yrs (County) renewable; Foreign 6 yrs
Bad-Check Penalties:
Treble damages + reasonable fees
Statutory notice required
Wage Garnishment:
See federal law + C.R.S. exemptions
Connecticut (CT)
Interest:
Legal:8%
Judgment:Up to 10%
Statute of Limitations:
Open:6 yrs; Oral 3 yrs
Written:6 yrs
Judgment:Domestic 20/25 yrs; Small claims 10/15 yrs; Foreign 20 yrs
Bad-Check Penalties:
Signer may be personally liable unless clearly signed in corporate capacity
Corporate capacity rules apply
Wage Garnishment:
25% disposable or 40× federal minimum (lesser)
Delaware (DE)
Interest:
Legal:Fed discount +5 pts
Judgment:Fed discount +5 pts
Statute of Limitations:
Open:4 yrs; Goods 4 yrs
Written:3 yrs
Judgment:See state statutes
Bad-Check Penalties:
Amount due + cost of suit + protest fees
Standard notice recommended
Wage Garnishment:
85% disposable or wages-$127.50/wk schedule
Florida (FL)
Interest:
Legal:10%
Judgment:10% or contract
Statute of Limitations:
Open:4 yrs
Written:5 yrs
Judgment:Domestic 7 yrs (renewable)
Bad-Check Penalties:
After 30-day demand: treble + bank/court costs + reasonable fees
30-day demand required
Wage Garnishment:
Federal baseline; head-of-household wage protection; strong homestead; first $1,000 automobile noted
Georgia (GA)
Interest:
Legal:7%; Commercial accounts 18%
Judgment:12%
Statute of Limitations:
Open:4 yrs
Written:6 yrs
Judgment:Domestic 7 yrs; Foreign 10 yrs
Bad-Check Penalties:
After 10-day demand, 2× up to $500 + service charge (greater of $30 or 5%)
10-day demand required
Wage Garnishment:
Federal baseline; public employees may be garnished
Hawaii (HI)
Treble Dmg
Interest:
Legal:10%
Judgment:10% (if no written contract)
Statute of Limitations:
Open:6 yrs; Goods 4 yrs
Written:6 yrs
Judgment:Domestic 10 yrs; Foreign 6 yrs for registration / 10 yrs after
Bad-Check Penalties:
Greater of $100 or 3× (cap $500)
Statutory notice required
Wage Garnishment:
95% first $100; 90% second $100; 80% thereafter (or federal)
Idaho (ID)
Treble Dmg
Interest:
Legal:12%
Judgment:10.875% + base rate (resets annually)
Statute of Limitations:
Open:4 yrs; Oral 4 yrs
Written:5 yrs
Judgment:Pre-7/1/2015: Domestic 5/Foreign 6 (renewable); Post-7/1/2015: Domestic/Foreign 10 (renewable)
Bad-Check Penalties:
Up to 3× (cap $500 over face; small-claims context)
Small claims procedures apply
Wage Garnishment:
Federal baseline; state practice caveats noted
Illinois (IL)
Treble Dmg
Interest:
Legal:5%
Judgment:9%
Statute of Limitations:
Open:5 yrs; UCC 4 yrs
Written:10 yrs
Judgment:Domestic 20 yrs; Foreign = foreign jurisdiction's rule
Bad-Check Penalties:
3× up to $500 + attorneys' fees/costs
Statutory notice required
Wage Garnishment:
15% of gross or up to 45× federal minimum (greater standard)
Indiana (IN)
Treble Dmg
Interest:
Legal:8%
Judgment:8%
Statute of Limitations:
Open:6 yrs
Written:10 yrs (pre-9/1/82); 6 yrs (post-8/31/82); other written 10 yrs
Judgment:Domestic/Foreign 10 yrs
Bad-Check Penalties:
3× up to $500 over face + fees/interest (statutory forms cited)
Statutory forms required
Wage Garnishment:
75% disposable or 30× federal minimum—greater standard
Iowa (IA)
Treble Dmg
Interest:
Legal:5%
Judgment:10%
Statute of Limitations:
Open:5 yrs
Written:10 yrs
Judgment:Domestic/Foreign 10 yrs (renewable in 9th year)
Bad-Check Penalties:
Up to 3× face (≤$500) + fees
See Iowa statutes
Wage Garnishment:
See Iowa Code Ch. 627; state-specific exemptions
Kansas (KS)
Treble Dmg
Interest:
Legal:10%
Judgment:Discount rate +4 pts (reset yearly)
Statute of Limitations:
Open:3 yrs; Goods 4 yrs
Written:5 yrs
Judgment:Domestic/Foreign 5 yrs (renewable)
Bad-Check Penalties:
3× not exceeding face by $500 or ≥$100 (greater rule) + fees
Statutory notice required
Wage Garnishment:
Federal baseline + personal property/homestead protections
Kentucky (KY)
Interest:
Legal:8%
Judgment:12%
Statute of Limitations:
Open:5 yrs; Oral 5 yrs
Written:10–15 yrs (see execution date rule)
Judgment:Domestic/Foreign 15 yrs
Bad-Check Penalties:
N/A
Wage Garnishment:
75% disposable or 30× fed. minimum (greater)
Louisiana (LA)
Interest:
Legal:9.75% (1996 reference)
Judgment:9.75% (1996 reference)
Statute of Limitations:
Open:3 yrs; Notes 5 yrs
Written:10 yrs
Judgment:Domestic/Foreign 10 yrs
Bad-Check Penalties:
After 30-day certified demand, 2× face + fees/costs
30-day certified demand required
Wage Garnishment:
75% disposable, ≥30× federal minimum floor
Maine (ME)
Interest:
Legal:8%
Judgment:Post-judgment 15% under $30k; T-bill rate over $30k
Statute of Limitations:
Open:6 yrs
Written:6 yrs (+20 if attested)
Judgment:Domestic/Foreign 20 yrs
Bad-Check Penalties:
Amount + court/service/collection costs
Standard notice recommended
Wage Garnishment:
25% disposable or 40× federal minimum (lesser; post-judgment)
Maryland (MD)
Interest:
Legal:6%
Judgment:10% (or contract)
Statute of Limitations:
Open:3 yrs; UCC 4 yrs
Written:3 yrs; Specialty (under seal) 12 yrs
Judgment:Domestic/Foreign 12 yrs
Bad-Check Penalties:
After 30-day notice: amount, $25 fee, and up to 2× (cap $1,000) (COD context noted)
30-day notice required
Wage Garnishment:
Greater of 75% or local baseline; selected cash/property exemptions
Massachusetts (MA)
Interest:
Legal:6%; Contract 12%
Judgment:12%
Statute of Limitations:
Open:6 yrs; UCC 4 yrs
Written:6 yrs; Under seal 20 yrs
Judgment:Domestic/Foreign 20 yrs
Bad-Check Penalties:
Amount + costs/protest; court may add $100–$500 damages
Court discretion on damages
Wage Garnishment:
$125/week exempt
Michigan (MI)
Interest:
Legal:5%; Usury limit 25%
Judgment:Changes semi-annually (e.g., 6.953%)
Statute of Limitations:
Open:6 yrs; UCC 4 yrs
Written:6 yrs
Judgment:Domestic/Foreign 10 yrs (renewable)
Bad-Check Penalties:
2× (cap $500) with notice rules for retail claims
Retail claim notice rules apply
Wage Garnishment:
Federal baseline
Minnesota (MN)
Interest:
Legal:6%; Business/agricultural loan = Fed discount +4.5%
Judgment:5% (varies)
Statute of Limitations:
Open:6 yrs; UCC 4 yrs; Transportation 3 yrs
Written:6 yrs
Judgment:Domestic/Foreign 10 yrs
Bad-Check Penalties:
Amount + $100 penalty + judgment rate interest; fees if >$1,250; $15 service charge
Statutory notice required
Wage Garnishment:
Greater of 75% or 40× federal minimum
Mississippi (MS)
Interest:
Legal:8%
Judgment:Contract (court sets if silent)
Statute of Limitations:
Open:3 yrs; UCC 6 yrs
Written:3 yrs
Judgment:Domestic 7 yrs; Foreign 7 yrs (3 if resident)
Bad-Check Penalties:
If ≥$100: up to $1,000 fee + court may add ≤85% of check value; criminal tiers apply
Criminal tiers by amount
Wage Garnishment:
Federal baseline
Missouri (MO)
Treble Dmg
Interest:
Legal:9%
Judgment:9%
Statute of Limitations:
Open:5 yrs; Goods 4 yrs
Written:10 yrs
Judgment:Domestic/Foreign 10 yrs (revival every 10)
Bad-Check Penalties:
3× face + attorneys' fees
Statutory notice required
Wage Garnishment:
Federal baseline; 90%/75% guidance by household type
Montana (MT)
Treble Dmg
Interest:
Legal:10%
Judgment:10%
Statute of Limitations:
Open:Oral 5 yrs
Written:8 yrs
Judgment:Domestic 10 yrs (District/Justice courts)
Bad-Check Penalties:
≥$100 or 3× (cap $500) + UCC add-ons ($30 svc.)
UCC service charge applies
Wage Garnishment:
Federal baseline; executions provided by state law
Nebraska (NE)
Interest:
Legal:12% per instrument or contract
Judgment:28-week T-bill +2%
Statute of Limitations:
Open:4 yrs
Written:5 yrs
Judgment:Domestic 5 yrs (renewable); Foreign 5 yrs (non-renewable)
Bad-Check Penalties:
Amount + costs + protest fees
Standard notice recommended
Wage Garnishment:
Greater of 75% (85% if head-of-household) or 30× federal minimum
Nevada (NV)
Treble Dmg
Interest:
Legal:Prime +2% (semi-annual reset); contract controls otherwise
Judgment:Prime +2% (semi-annual reset); contract controls otherwise
Statute of Limitations:
Open:4 yrs; Lease 4 yrs
Written:6 yrs
Judgment:Domestic/Foreign 6 yrs
Bad-Check Penalties:
Amount + protest; 3× face (min $100 / max $500)
Statutory notice required
Wage Garnishment:
≤25% disposable or 30× federal minimum (lesser), except support
New Hampshire (NH)
Interest:
Legal:Varies by year
Judgment:4% (2005 example)
Statute of Limitations:
Open:3 yrs; Goods 4 yrs
Written:3 yrs
Judgment:Domestic/Foreign 20 yrs
Bad-Check Penalties:
Amount + interest/costs/fees + $10 per business day (max $500) with statutory notice
Statutory notice required
Wage Garnishment:
50× federal minimum; future wages generally exempt from ongoing orders
New Jersey (NJ)
Treble Dmg
Interest:
Legal:Contract up to 30%
Judgment:Varies by year (e.g., 1% ≤$15k; +2% >$15k in 2005)
Statute of Limitations:
Open:6 yrs; Goods 4 yrs
Written:6 yrs
Judgment:Domestic/Foreign 20 yrs
Bad-Check Penalties:
Face + up to 3× (cap $500)
Statutory notice required
Wage Garnishment:
Minimum-wage floor with 10% of gross above threshold ($154.50/wk reference)
New Mexico (NM)
Treble Dmg
Interest:
Legal:Varies
Judgment:8.75% (absent contract)
Statute of Limitations:
Open:4 yrs
Written:6 yrs
Judgment:Domestic/Foreign 14 yrs
Bad-Check Penalties:
Amount + 3× (cap $500) with statutory steps
Statutory steps required
Wage Garnishment:
Greater of 75% or 40× federal minimum
New York (NY)
Interest:
Legal:16%
Judgment:9%
Statute of Limitations:
Open:6 yrs; Goods 4 yrs
Written:6 yrs
Judgment:Domestic/Foreign 20 yrs (10-yr renewable lien)
Bad-Check Penalties:
Face + 2× up to $400 (NSF) or $750 ('no account') with statutory demand
Statutory demand required
Wage Garnishment:
90% of earnings protected; first $154.50/wk wholly exempt for minimum-wage earners
North Carolina (NC)
No Wage Garn.Treble Dmg
Interest:
Legal:8%
Judgment:8%
Statute of Limitations:
Open:3 yrs; Goods 4 yrs
Written:3 yrs
Judgment:Domestic/Foreign 10 yrs
Bad-Check Penalties:
After 30-day demand: lesser of $500 or 3× (≥$100 minimum)
30-day demand required
Wage Garnishment:
100% of last 60 days' earnings exempt for family support; garnishment limited to certain public debts
North Dakota (ND)
Treble Dmg
Interest:
Legal:6%
Judgment:12%
Statute of Limitations:
Open:6 yrs (services); Goods 4 yrs
Written:6 yrs
Judgment:Domestic/Foreign 10 yrs (renewable)
Bad-Check Penalties:
Amount + $25 fee + lesser of $200 or 3×
Standard notice recommended
Wage Garnishment:
Greater of 75% or 40× federal minimum (+$20 per dependent)
Ohio (OH)
Treble Dmg
Interest:
Legal:1% above 'short rate' (e.g., ~5% in 2005)
Judgment:10% (unless contract)
Statute of Limitations:
Open:6 yrs
Written:15 yrs; UCC sales 2-725
Judgment:Domestic/Foreign 21 yrs (renew every 5)
Bad-Check Penalties:
Greater of $200 or 3× + attorneys' fees (no cap)
No statutory cap on fees
Wage Garnishment:
Continuing garnishments permitted (since 3/30/99)
Oklahoma (OK)
Interest:
Legal:6% unless contract
Judgment:5.63% (2003 baseline example)
Statute of Limitations:
Open:3 yrs; UCC 5 yrs
Written:5 yrs
Judgment:Domestic/Foreign 5 yrs (renewable)
Bad-Check Penalties:
N/A
Wage Garnishment:
75% wages exempt (hardship may increase)
Oregon (OR)
Treble Dmg
Interest:
Legal:9% simple (unless contract)
Judgment:9% simple (unless contract)
Statute of Limitations:
Open:6 yrs; Goods 6 yrs (UCC 4 yrs referenced)
Written:6 yrs
Judgment:Domestic/Foreign 10 yrs (renewable)
Bad-Check Penalties:
Reasonable fees + up to 3× (cap $500) after 30-day demand
30-day demand required
Wage Garnishment:
75% of disposable earnings above minimum wage
Pennsylvania (PA)
No Wage Garn.
Interest:
Legal:6%
Judgment:6%
Statute of Limitations:
Open:4 yrs
Written:4 yrs
Judgment:Domestic 5 yrs (writ of revival within 5); Foreign 4 yrs
Bad-Check Penalties:
N/A
Wage Garnishment:
100% of wages exempt (selected statutory exceptions); $300 baseline noted
Rhode Island (RI)
Interest:
Legal:12%
Judgment:12%
Statute of Limitations:
Open:10 yrs
Written:10 yrs
Judgment:Domestic/Foreign 20 yrs
Bad-Check Penalties:
Amount + $25 fee + treble (cap $1,000)
Statutory notice required
Wage Garnishment:
Federal baseline
South Carolina (SC)
No Wage Garn.Treble Dmg
Interest:
Legal:8.75%
Judgment:12%
Statute of Limitations:
Open:3 yrs (see SC Code 36-2-725); Goods 6 yrs
Written:3 yrs; Under seal 20 yrs
Judgment:Domestic/Foreign 10 yrs; Under seal 20 yrs
Bad-Check Penalties:
Court costs + amount; damages up to $500 or 3× (lesser) with statutory steps
Statutory steps required
Wage Garnishment:
Not available for wages
South Dakota (SD)
Interest:
Legal:12%
Judgment:10%
Statute of Limitations:
Open:6 yrs; Goods 4 yrs
Written:6 yrs
Judgment:Domestic/Foreign 10 yrs (renewable)
Bad-Check Penalties:
N/A
Wage Garnishment:
Continuing lien up to 20% of disposable wages
Tennessee (TN)
Treble Dmg
Interest:
Legal:10%
Judgment:10% (or contract if higher)
Statute of Limitations:
Open:6 yrs
Written:6 yrs
Judgment:Domestic/Foreign 10 yrs
Bad-Check Penalties:
Treble damages up to $500 after 30-day notice; plus amounts/fees
30-day notice required
Wage Garnishment:
25% disposable or 30× federal minimum (lesser); +$2.50/week per dependent <16
Texas (TX)
No Wage Garn.
Interest:
Legal:18% with agreement (6% if none)
Judgment:5.5% (4-15-2005 notation)
Statute of Limitations:
Open:4 yrs; Note 6 yrs
Written:4 yrs
Judgment:Domestic/Foreign 10 yrs (renewable)
Bad-Check Penalties:
N/A
Wage Garnishment:
100% of wages exempt for ordinary debts
Utah (UT)
Treble Dmg
Interest:
Legal:10% (varies by claim type/size)
Judgment:2.65% (summary example; statutorily variable)
Statute of Limitations:
Open:4 yrs
Written:6 yrs
Judgment:Domestic/Foreign 8 yrs
Bad-Check Penalties:
Certified statutory notice; greater of $100 or 3× (cap: check + $500)
Certified notice required
Wage Garnishment:
Weekly floor (example: $142.50/wk)
Vermont (VT)
Interest:
Legal:12%
Judgment:12%
Statute of Limitations:
Open:6 yrs; Retail installment 4 yrs
Written:6 yrs; Witnessed PN 14 yrs
Judgment:Domestic/Foreign 8 yrs
Bad-Check Penalties:
Amount + $50 damages + costs/fees (notice requirements)
Notice required
Wage Garnishment:
75% of earnings above minimum (85% if personal/family debt)
Virginia (VA)
Treble Dmg
Interest:
Legal:8%
Judgment:9% (or contract if higher)
Statute of Limitations:
Open:3 yrs (from last charge/payment); Goods 4 yrs
Written:5 yrs
Judgment:Domestic 20 yrs; Foreign 10 yrs
Bad-Check Penalties:
Lesser of $250 or 3× face
Standard notice recommended
Wage Garnishment:
Federal baseline
Washington (WA)
Treble Dmg
Interest:
Legal:12%
Judgment:12%
Statute of Limitations:
Open:6 yrs
Written:6 yrs
Judgment:Domestic/Foreign 10 yrs (renewable)
Bad-Check Penalties:
Contract rate or 12% if silent; collection costs up to $40; litigation can yield 3× value up to $800 (6-year enforcement)
Collection cost limits apply
Wage Garnishment:
Greater of 75% or $206/week (30× state min wage)
West Virginia (WV)
Interest:
Legal:6% (contract rate may prevail)
Judgment:10%
Statute of Limitations:
Open:5 yrs
Written:10 yrs
Judgment:Domestic/Foreign 10 yrs
Bad-Check Penalties:
Amount + up to $10 service charge; criminal tiers by amount
Criminal tiers apply
Wage Garnishment:
20% disposable or 30× federal minimum (lesser)
Wisconsin (WI)
Treble Dmg
Interest:
Legal:5%
Judgment:12%
Statute of Limitations:
Open:6 yrs
Written:6 yrs
Judgment:Domestic/Foreign 20 yrs
Bad-Check Penalties:
Actual + exemplary damages up to 3× (limit $300)
Exemplary damage limits apply
Wage Garnishment:
80% of net pay protected
Wyoming (WY)
Treble Dmg
Interest:
Legal:7%
Judgment:Contract rate or 10%
Statute of Limitations:
Open:8 yrs
Written:10 yrs
Judgment:Domestic/Foreign 5 yrs
Bad-Check Penalties:
3× amount (≥$100) + $30 collection fee
Collection fee applies
Wage Garnishment:
Federal baseline; up to 65% for child-support arrears
District of Columbia (DC)
Interest:
Legal:6%
Judgment:70% of IRS underpayment rate
Statute of Limitations:
Open:3 yrs
Written:3 yrs
Judgment:Domestic 20 yrs; Foreign—apply foreign statute
Bad-Check Penalties:
Amount due + protest fees
Standard notice recommended
Wage Garnishment:
Federal baseline; D.C. government employees not attachable

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