If your database's log file size reaches its limit, you can truncate and then shrink it to its minimum size by using the following commands:
USE DatabaseName
GO
DBCC SHRINKFILE(<TransactionLogName>, 1)
BACKUP LOG <DatabaseName> WITH TRUNCATE_ONLY
DBCC SHRINKFILE(<TransactionLogName>, 1)
If you've limit your log file size, and it gives an error when it has reached its maximum limit, you can do the following to tackle the issue:
1: Set your database's recovery mode to "SIMPLE". By default, SQL Server 2005 sets a database's recovery mode to "FULL". Now, before changing the recovery mode, you should know what you're willing to recede. When a database's recovery mode is "FULL", it means when you restore or when the database gets corrupted, SQL Server will restore it to a point right before it got corrupted! On the other hand, if you use "SIMPLE" recovery mode, it will simply restore the database to the last point the backup was made. For instance, you took a database's backup at, let's say, 10 am, and your database got corrupted at 5 pm the same day. With FULL recovery mode, you'll be able to restore your batabase to a state it was in right before 5 pm. With SIMPLE recovery mode, you'll be able to restore your database to a state it was in at 10 am!
2: Take periodic backup of your database's log file! When you take its backup, the committed transactions in the log file go in overwrite mode.
Hope it helps.
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