Arizona Statute of Limitations on Debt Collection
Most of the time, when a creditor, debt buyer, or collector
files a lawsuit, the claim is for breach of contract. This is
because when a consumer takes on a debt, or takes on credit, they
are making a contract to pay the debt in exchange for the credit
received to make purchases. In a contract case, the statute of
limitation begins to run when the contract is said to be "breached"
or broken. That is, when the consumer breaks the promise to pay by
no longer paying the debt, the contract is breached. States may
differ on when this breach is said to technically occur. Typically,
the ultimate breach is said to occur not after one or two payments
are missed, but when the account is charged off. An account is
charged off after being 180 days delinquent. Thus, if being sued
for breach of contract, and you want to know if the statute of
limitations is a defense for you, figure out when the last payment
was made, count out 180 days from then. That would be the date of
The statute of limitations is the time the company suing has to
file the lawsuit from the date of that breach.
Written contracts: 6 years, runs from date creditor could have
Oral debts, stated or opens accounts: 3 years.
Actions for fraud or mistake: 3 years from the date of the
discovery of the fraud or mistake
Contact SmithMarco, P.C. today for any other questions
concerning Arizona Statute of Limitations or general debt
collection--know your rights!