Debt Collection Problems

Debt Collection Laws

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.