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Statute of Limitation on Debt in New Mexico

When a debt goes unpaid for too long, creditors have the right to sue for a breach of contract. However, most states, including New Mexico, have a statute of limitation for suing debtors.

This means that if you have outstanding debt, there is a certain time frame when the creditor must take legal action against you, and once that time has elapsed you can no longer be sued.

In New Mexico, different types of debt have different statutes of limitations. If you or a loved one is in trouble with debt, understanding your legal rights as well as the basics of New Mexican debt law can be very helpful.

Listed below are some of the most common types of debt and their statute of limitations:

  • Written contracts (and promissory notes). Suing for non-payment when there is a written contract must be done within 6 years of the contract. However, when it comes to contracts for the sale of personal property, the statute of limitations is 4 years.
  • Oral contracts and open-ended accounts. The statute of limitations is 4 years.
  • Out of state. In-state and out-of-state judgments have a statute of limitations of 14 years.
  • Other. All other creditor-debtor transactions have a 4-year limitation period after accrual of the right to sue.

Determining whether the statute of limitations on your debt has expired is one of the first steps you should take when trying to handle your debt crisis.

Often times, outstanding debts are sold to junk debt buyers who try to collect payments from you even after the statute of limitations on the original debt has expired.

If you make a payment to a collection agency on a debt that has expired, it’s like signing a new contract and the agency will regain the right to sue if you fall behind on payments.

Illegal actions by debt collectors

Many outstanding debts get bought up by junk debt buyers, collection agencies who specialize in buying old debt and finding ways to collect on it. If you believe your debt has been bought by a collection agency, then it’s important to know your rights.

Here are some of things collection agencies are not allowed to do:

  • Call you repeatedly at inconvenient times.
  • Intimidate or threaten you in any way.
  • Lie or deceive you.
  • Call your workplace if you’ve prohibited it.
  • Reveal the details of your debt to another party.

Contact a New Mexico financial law attorney today

Our firm has over 30 years of legal experience helping people like you get out of debt and begin to lay the foundations for a stable financial future.

If you are unsure of how to handle your debt problem, are being harassed by collection agencies, or don’t know when your statute of limitations expires on your debt, give us a call at (505) 503-1637 or contact us online to schedule an initial consultation.

We are a debt relief agency and have practiced bankruptcy law for a combined 50 years. Our services include helping individuals and couples file for bankruptcy relief under the Bankruptcy Code. 

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