We can assist with:
- Debt collection
- Drafting secured promissory notes
- Settling debts
- Bankruptcy counseling
- Enforcing payment terms
- Enforcing judgments
- Reviewing contracts
- Collecting large unpaid invoices
- Demand letters
- Breech of contract counseling
Statute of Limitation on Debt Collection in Arizona
Written contracts: 5 years
Oral contacts: 3 years
Promissory notes: 6 years
Open-ended accounts (including credit cards): 3 years
(the statute of limitations are subject to change)
The Statute of Limitation is the amount of time that the company intending to sue has to proceed based off of the time of the breach of contract (i.e. lack of payment). You cannot be sued for lack of a one or two time payment, but if you are 180 days delinquent then the account may be charged off. After 180 days of no payment, the timeline of when the crediting company can proceed with a lawsuit begins.
In the state of Arizona, the timelines range from 3-6 years but is dependent on the specific contract that is being breached. If the contract is oral or open-ended such as credit cards, then there is a 3 year lawsuit timeline. If the breach is for a written contract, the company may sue within a 5 year timeframe and if a promissory contact is breached, they have the ability to sue up to 6 years.
What Does a Debt Collection Attorney do?
Whether you are a consumer that owes or cannot pay a debt or a creditor trying to get their money, a debt collection attorney can be your solution to fixing your financial issues.
Are you unable to pay back a debt? Do you need help negotiating a payment plan with a creditor? If so, you may benefit from working with a debt collection attorney. We have the knowledge and experience to help figure out your best course of action to take care of your debts. Debt collection attorneys can negotiate on behalf of a consumer with creditors, protect consumers against unlawful harassment by creditors, represent consumers in court, or help a consumer file bankruptcy if needed.
As a creditor, you can hire a debt collection attorney to assist in getting your money back from a delinquent debtor. We can increase your chances of lawfully figuring out a game plan to get the money you’re owed.
The Fair Debt Collections Practices Act [FDCPA]
Money issues can affect all of us at some point in our lives. When money woes make it hard to repay a debt, having a collection agency step outside the law to try and collect make matters worse. The Fair Debt Collections Practice Act, or FDCPA, is a federal law that keeps third-party debt collectors in check. The FDCPA restricts the number of times a debt collector can contact you, the times of day they can call, and regulates other methods a debt collect can use to try and get repayment. Please note, this act only applies to third-party debt collectors.
What Do I Do When a Customer Refuses to Pay Their Invoice?
Start with a friendly reminder, then follow up with a formal written demand that clearly states the amount owed, the original payment terms, and a deadline to pay. If that doesn’t work, consult with an attorney about your options, which may include a demand letter on firm letterhead, filing a lawsuit, or pursuing a mechanic’s lien if you’re in the construction industry.
How Long Should I Wait Before Sending a Demand Letter?
Most businesses send a demand letter after 30-60 days of non-payment, though it depends on your industry and relationship with the customer. The longer you wait, the harder it typically becomes to collect—so don’t let an unpaid invoice sit for months hoping it resolves itself.
What’s the difference between a demand letter and filing a lawsuit?
A demand letter is a formal request for payment that puts the debtor on notice and often resolves the matter without court involvement. Filing a lawsuit initiates a legal case where a judge can enter a judgment against the debtor, but it involves court costs, filing fees, and more time—which is why a demand letter is usually the better first step.
When does it make sense to hire an attorney for debt collection vs. writing it off?
Generally, if the amount owed is significant enough that the potential recovery outweighs the legal costs—and the debtor actually has assets or income to collect from—it’s worth pursuing. An attorney can also help you evaluate whether a formal demand letter alone might prompt payment without needing to file suit.
Can I charge interest on unpaid invoices in Arizona?
Yes, but only if your contract or invoice specifies an interest rate—otherwise you’re limited to the statutory rate, which in Arizona is 10% per year. This is why it’s important to include clear payment terms and interest provisions in your contracts and invoices from the start.
What is a Judgment?
If you find yourself unable to pay your debts, an individual or debt collector can sue you. If a lawsuit is filed against you and you ignore the lawsuit, do not respond to the lawsuit, and/or lose the lawsuit, the court can enter a judgment against you. This means you are legally required to repay the debt.
It is possible to appeal, reverse or amend a judgment; however, if the judgment stands there are several ways a debt collector and enforce the judgment.
How can a judgment be enforced?
Depending on your state’s statute of limitations on debt collection the judgment can follow you for many years. A creditor can attempt to get their money back by going after your bank account(s), garnishing your wages, or personal property. It is in your best interest to get ahead of this extreme situation by talking with an attorney familiar with consumer law.
This article contains general legal information and does not contain legal advice.