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How Long Does a Creditor Have to Collect Debt In Arkansas?

The answer to this question varies based on the specific kind of debt that the creditor is trying to collect. The statute of limitations on debt collection in Arkansas refers to the time limit or deadline given to creditors for collecting debt through legal channels. The time limit, which is often between three and five years, will differ based on the kind of debt. Once the time limit has lapsed, you will lose your right to file a lawsuit against the debtor and collect the debt.

What is The Statute Limitations for Collecting Debt in Arkansas?

The following are the typical statute of limitations for collecting common types of debt in Arkansas:

It’s crucial to note that even if you lose your chance to sue a debtor due to the statute of limitations expiring, you may still be able to reach out to the debtor and try to work things out or pursue a suit to collect. More importantly, the time limit can be reset, depending on the specific situation, such as when the debtor:

If one of these applies to your situation, you must file a lawsuit against the debtor as soon as possible before the time limit expires again.

An Important Note on Judgments

Creditors have the right to file a suit against delinquent debtors to obtain a judgment. This court order will legally recognize the debt and provide the creditor with stronger legal options for debt collection, including wage garnishment and asset seizures. Ten years is the statute of limitations for collecting on judgments.

In some cases, creditors can request the renewal of the judgment and extend the time limit for more than ten years. When this happens, a creditor can collect on the judgment when the income of the debtor increases, or they acquire assets or money that aren’t exempt from debt collection.

Get In Touch with Our Arkansas Creditors’ Rights Attorneys Now

Debt collection is rarely easy. For any questions or more information about debt collection laws and your rights as a creditor, do not hesitate to discuss your case with our Arkansas creditors’ rights attorneys at Brown Dunning Walker Fein Drusch PC. Send us an online message or call 501-588-4460 to schedule your case evaluation with our Arkansas creditors’ rights attorneys.