As a Tucson bankruptcy attorney, I can’t tell you how many times I’ve had clients who were by Arizona’s statute of limitations on credit card companies collecting debt from them: some judges interpreted the law as 3 years and others 6 years. So what’s the answer?
New Law to Clarify Arizona Bankruptcy Law
This year, the Arizona State Legislature sided with the credit card companies, and extended the statute of limitations to 6 years. This new law went into effect July 20, 2011. Some lawmakers and debt collector lobbyists claim this will be beneficial for consumers. Those claims are nonsense.
First, it gives debt collectors more time to collect.
Second, it allows debt collectors more time to add-on fees, penalties, high interest costs, and attorney fees to their claims.
I have seen small debts grow into outrageous debts after only a few years. On the positive side, we now have a definite answer to how long credit card companies can collect. Also, this Arizona law change has no effect on your Federal Rights in Bankruptcy Court.
If you find you can’t work out a deal with the debt collectors or handle their harassment, you still have the right to seek bankruptcy protection. For more information, you should discuss your individual situation with an experienced bankruptcy attorney.