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.