NM Statute of Limitations on Debt

In New Mexico, there is a statute of limitations on debt that limits the amount of time that a creditor has to file a lawsuit to collect a debt. This statute of limitations varies depending on the type of debt, and it is important for individuals to understand the statute of limitations on their debts to avoid being sued for an old debt.

What is the Statute of Limitations on Debt in New Mexico?

The statute of limitations on debt in New Mexico varies depending on the type of debt. The following are the common types of debt and their respective statute of limitations:

Oral Agreements

For debts that are based on oral agreements, the statute of limitations is four years. This means that creditors have up to four years from the date of the last payment or last acknowledgement of the debt to file a lawsuit to collect the debt.

Written Contracts

For debts that are based on written contracts, the statute of limitations is six years. This means that creditors have up to six years from the date of the last payment or last acknowledgement of the debt to file a lawsuit to collect the debt.

Promissory Notes

For debts that are based on promissory notes, the statute of limitations is six years. This means that creditors have up to six years from the due date or the date of the last payment or last acknowledgement of the debt to file a lawsuit to collect the debt.

Open Accounts

For debts that are based on open accounts, the statute of limitations is four years. This means that creditors have up to four years from the date of the last payment or last acknowledgement of the debt to file a lawsuit to collect the debt.

Judgments

For debts that are based on judgments, the statute of limitations is fourteen years. This means that creditors have up to fourteen years from the date of the judgment to collect the debt.

What Happens When the Statute of Limitations on Debt Expires?

When the statute of limitations on debt expires, it means that creditors can no longer file a lawsuit to collect the debt. However, it is important to note that the expiration of the statute of limitations does not mean that the debt is forgiven or that the creditor cannot attempt to collect the debt through other means.

Creditors may still attempt to collect the debt through phone calls, letters, or other forms of communication. It is important for individuals to know their rights and to understand that they do not have to pay a debt that is past the statute of limitations.

How Can You Protect Yourself from Old Debts?

To protect yourself from old debts, it is important to keep track of your debts and to know the statute of limitations on each debt. If a debt is past the statute of limitations, you can inform the creditor that they can no longer file a lawsuit to collect the debt.

It is also important to note that making a payment or acknowledging a debt can restart the statute of limitations. This means that it is important to be careful when communicating with creditors about old debts.

Conclusion

The statute of limitations on debt in New Mexico is an important concept that individuals should understand to avoid being sued for an old debt. By knowing the statute of limitations on each debt, individuals can protect themselves from creditors attempting to collect old debts.

Remember, if a debt is past the statute of limitations, creditors can no longer file a lawsuit to collect the debt. If you are unsure about the statute of limitations on a debt, it is important to seek legal advice to ensure that you are protected.

✅Free Debt Relief Consultation. See If You Qualify In 1 Minute.
Click Here 👉 https://bit.ly/3GeFeHR

✅More Loan and debt relief articles 👉 Loan & debt