All states have a statute of limitations that limits the amount of time that a party can file suit against another party. In the realm of debt, the statute of limitations is governed by contract law, and varies for written and verbal contracts. In California, the statute of limitations for written contracts is 4 years, while in Arizona it is 6 years. This means that once the limitation period runs, the creditors can no longer bring legal action and the debt is no longer enforceable.
Consumers who are unsure whether legal action is barred by the statute of limitations in their state, should contact an experienced debt settlement attorney to evaluate their case. Often, this debt can be settled and the path to financial recovery can begin much sooner than consumers expected. A debt settlement attorney can assist in getting creditors to stop aggressively pursuing uncollectable debt.