Debt relief in Montana: collection rules, time limits and your options
Updated November 9, 2026
Montana at a glance (checked November 2026)
| Montana | |
|---|---|
| Time limit to sue on credit cards | Usually 5 years |
| Signed written contracts | 6 years for lawsuits filed since October 1, 2025 (8 years before) |
| Wage garnishment for consumer debt | Up to 25% of take-home pay |
| State debt collection law | None of its own; the state consumer protection law applies |
| Who licenses debt collectors | No general state license; debt management and settlement companies need one |
| Where to complain | Montana Office of Consumer Protection, and the CFPB |
Debt collection rules in Montana
Montana doesn't have a general license for collection agencies or a debt collection statute of its own, so the federal Fair Debt Collection Practices Act is your main protection. A third-party collector can't call before 8 a.m. or after 9 p.m., threaten arrest or a lawsuit it doesn't plan to file, misstate what you owe, or discuss your debt with your family or coworkers. It must send you a validation notice, and if you dispute the debt in writing within 30 days, it has to stop until it verifies the debt.
The Montana Department of Justice's Office of Consumer Protection takes complaints about collectors and other businesses under the state's consumer protection law.
How long creditors have to sue
- 5 years for credit cards and other debts that aren't based on a written contract you signed (MCA 27-2-202). Montana usually treats a credit card as an open account.
- 6 years for written contracts, for lawsuits filed on or after October 1, 2025. The limit was 8 years before a 2025 change to the same law.
The clock usually starts when you default. A payment or a written promise to pay can sometimes restart it, so get advice before paying anything on a very old debt. Once the time limit has run, a collector can still ask you to pay but can't sue you or threaten to.
If you're sued, you usually have 20 days to answer in a Justice or City Court and 21 days in District Court. Montana Law Help has a free form for answering a debt lawsuit.
What can be garnished in Montana
Montana follows the federal limit. A creditor with a judgment can take the lesser of 25% of your take-home pay or the amount you earn above $217.50 a week, which is 30 times the federal minimum wage (MCA 25-13-614).
Child support and taxes follow separate rules. Social Security and other federal benefits stay protected from ordinary creditors, even after they're deposited in your bank account.
Ways out of debt in Montana
- Nonprofit credit counseling can put your cards on one debt management plan, usually at lower rates. Montana requires debt management and debt settlement companies to be licensed through the Department of Justice, so check before you sign up.
- How long will your cards take? Our credit card payoff calculator shows your payoff date at the payment you can afford.
- Debt settlement companies can't charge you a fee until they've actually settled a debt, under federal rules. Forgiven amounts can count as taxable income.
- Bankruptcy: Montana makes you use its own exemption list rather than the federal one, including a homestead exemption for the home you live in. A bankruptcy attorney can tell you what you would keep.
Where to get help or complain
- Montana Office of Consumer Protection takes complaints about collectors and other businesses, or call 800-481-6896.
- Debt management and settlement licensing explains the license these companies need in Montana.
- Consumer Financial Protection Bureau takes complaints about collectors and lenders nationwide.
- Montana Law Help has free guides and forms from Montana Legal Services Association for dealing with collectors and debt lawsuits.
General information about Montana law, not legal advice. Checked November 2026.