Statute of Limitations – Credit Card Debt in Arizona – Debt Settlement Lawyer in Phoenix

Are you wondering about how long a creditor has to sue you for a credit card debt in Arizona?  Have you consulted an experienced debt settlement lawyer in Phoenix?

What is the statute of limitations for a credit card debt in Arizona?

If have defaulted on a debt a creditor only has a limited amount of time to file a lawsuit against you for the unpaid debt.  This time period is known as the statute of limitations.  In Arizona, the statute of limitations for a credit card debt is six (6) years.  Therefore, if your creditor does not file a lawsuit against you within six (6) years they are time-barred from doing so.  The statute of limitations for credit card debt in Arizona was formerly three (3) years, but was extended to six (6) years on July 20, 2011.

A.R.S. §12-548 states as follows:

A. An action for debt shall be commenced and prosecuted within six years after the cause of action accrues, and not afterward, if the indebtedness is evidenced by or founded on either of the following:

1. A contract in writing that is executed in this state.

2. A credit card as defined in section 13-2101, paragraph 3, subdivision (a).

B. If there is a conflict between another jurisdiction and this state relating to the statute of limitations for a debt action as described in subsection A of this section, this section applies.


When does the statute of limitations begin to run on your credit card debt?

The statute of limitations begins to run when the legal cause of action occurs.  With a credit card debt the legal cause of action is usually a breach of contract for failing to pay a debt that was due.  Therefore, the statute of limitations normally begins to run as soon as you begin defaulting on your credit card.

Must I pay a debt that is time-barred?

If  you are beyond the statute of limitations a creditor cannot file a lawsuit against you to collect upon the debt.  However, a creditor may continue to contact you to demand payment.  In addition, a creditor may report your delinquency to the credit bureaus.

Should I wait for the statute of limitations to expire?

Clients often ask if they should hold off on debt settlement or bankruptcy to see if their creditors will sue before the statute of limitations expires.  Although there is always a chance your creditors will not file suit against you, this is extremely rare.  Creditors almost always file lawsuits for bad credit card debt and often do so near the end of the statute of limitations. As a result, you will likely face a lawsuit for a debt that has grown exponentially over the six (6) years you waited for the statute of limitations to run.