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.