New Mexico Statute of Limitations on Debt Collection
The Statue of Limitations is a law limiting time in which a
party can initiate a legal action. It defines the amount of
time within which legal proceeding must be started before they are
barred from being filed.
A consumer sued by a collection agency should be aware of the
statute of limitations for a breach of contract action. Most debts
that go unpaid by consumers are sued for breach of contract.
But there is a limit of time in which a person can be sued.
In New Mexico, written contracts have a statute of
limitations of 6 years (excluding contracts for the sale of
personal property have a 4 year limitations period). All
other creditor-debtor transactions have a 4 year limitations period
after accrual of the right to sue. That means, the creditor
has that long a period of time to file a lawsuit from the time of
the alleged breach of the contract.
NOTE: An action accrues on the first date on which the
creditor can sue for a breach or for relief, generally from the
last purchase or the last payment.
NOTE: If the limitations period has expired, an
acknowledgment or payment starts the period running again.
Both domestic (in state) and foreign (out of state) judgments
have a statute of limitations of 14 years.