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 breach.

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 sued account.

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!

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