What is the statute of limitations on debt collection?

In New Mexico, the statute of limitations on debt collection is typically based on the type of debt the consumer owes. Generally, written contracts and most consumer debts have a six-year statute of limitations. However, open-ended accounts like credit cards typically have a four-year statute of limitations. The statute of limitations on debt collection starts on the date of the consumer’s last payment or when the consumer last acknowledged the debt. Once the statute of limitations has expired, creditors generally can’t sue the consumer to collect the debt. This means that consumers can’t be sued for a debt that’s past the statute of limitations. When a consumer is sued by creditors for a debt that’s past the statute of limitations, the consumer has the right to defend themselves in court. Consumer debt defense law in New Mexico provides debtors with protections when facing debt collection. The consumer can use the statute of limitations defense to challenge the creditor’s claim that the debt is owed. In New Mexico, it is important for the consumer to understand their rights when facing debt collection. Consumers should be aware of the statute of limitations on debt collection and the protections provided by consumer debt defense law.

Related FAQs

How can I challenge an inaccurate credit report?
How do I get a judgment removed from my credit report?
Can I be sued for a time-barred debt?
How do I settle a debt?
Can I be sued for a debt after the statute of limitations has expired?
What is a cease and desist letter?
What is a debt validation letter?
How do I challenge a charge-off on my credit report?
What is a debt collection mediation?
Can I dispute a debt in court?

What is the statute of limitations on debt collection?

Related FAQs

Related Blog Posts