How long can a creditor sue me for a credit card debt in Arizona?
by
Christopher Ariano on Jan. 18, 2014
Bankruptcy & Debt Bankruptcy Bankruptcy & Debt Credit & Debt Bankruptcy & Debt Collection
Summary: A credit card company or collection agency has a set amount of time to file a lawsuit for an unpaid credit card known as the statute of limitations. In Arizona the deadline to file a lawsuit for an unpaid credit card debt is six years after the cause of action accrues.
How
long can a creditor sue me for a credit card debt in Arizona?
A credit card company or collection agency has
a set amount of time to file a lawsuit for an unpaid credit card known as the statute
of limitations. In Arizona the deadline to file a lawsuit for an unpaid credit
card debt is six years after the cause of action accrues. If a creditor does not file a lawsuit within
the statute of limitations it is time-barred from doing so. Although a creditor is precluded from filing
a lawsuit after the statute of limitations permits, a creditor may contact you
in order to demand payment and may report your delinquency to the credit
bureaus.
Arizona previously had a three year statute of
limitations, but on July 20, 2011 it was extended to six years. The Arizona statute concerning the statute of limitations for
credit card debt in Arizona is A.R.S. §12-548, which states as follows:
A. An action for debt shall be commenced and prosecuted within six
years after the cause of action accrues, and not afterward, if the indebtedness
is evidenced by or founded on either of the following:
1. A contract in writing that is executed in this state.
2. A credit card as defined in section 13-2101, paragraph 3,
subdivision (a).
B. If there is a conflict between another jurisdiction and this
state relating to the statute of limitations for a debt action as described in
subsection A of this section, this section applies.
When
does the statute of limitations begin to run on your credit card debt?
The statute of limitations begins to run when
the action accrues. For the purposes A.R.S.
§12-548, the action accrues when you default on your credit card payment,
thereby causing a breach of contract.
Credit card companies and collection agencies
usually file a lawsuit within the statute of limitations. Lawsuits for unpaid credit card debt are
often brought years after nonpayment occurs when the debt has accumulated substantial
interest and penalties. There is a lot of uncertainty with attempting to wait
out your creditors in addition to the continuous and long term negative effects
to your credit.
If you have been sued for a debt you should consult a Tucson bankruptcy lawyer or Tucson debt settlement lawyer for a financial solution that eliminates your debt and repairs your credit.
