Statute of Limitations for a Credit Card Debt in Arizona
The statute of limitations for a credit card debt in Arizona is six (6) years.
What is the statute of limitations for a credit card debt in Arizona?There is a limited amount of time in which a credit card company or third party debt collector can file a lawsuit against you for an unpaid. This is known as the statute of limitations. In Arizona the statute of limitations is six years. If a credit card company or collection agency does not file a lawsuit within six years they are precluded from doing so. Although the debt may be uncollectable the creditor may still contact you to demand payment and may report your delinquency to the credit bureaus. Arizona previously had a three year statute of limitations which was extended to six years on July 20, 2011. The Arizona statute of limitations for a credit card debt is defined under A.R.S. ?12-548, which states: 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 for a credit card debt begin to run?The statute of limitations for a credit card debt begins to run when you stop making payments on your credit card. Most credit card companies and collection agencies do not let the statute of limitations expire and often file suit near the deadline, when the debt is much larger. As a result, it is usually not a sound financial strategy to wait for the statute of limitations to run on a debt.