Let's suppose you haven't paid your credit card debt for a while, and you've seen a lot of "charge offs" on your credit report.
Should you breathe easy?
Never breathe easy. You've seen scary movies, right? It's only after you relax that the bad guy with the butcher knife shows up!
Here's why: on some days, and on some facts, the statute that governs credit card debt might be
Or the Court having jurisdiction over the matter may find a "choice of law" clause in the twenty page tiny type contract written by the credit card company, which says that any debt with it is controlled by the law of the state with the longest statute of limitation in the country.
After all, credit card companies have very smart, experienced, resourceful and dedicated lawyers; not very compassionate toward you, of course, but you knew that.
Or the Court might decide that you had acknowledged the debt, by writing a letter to the credit card company that said, "I know I owe it, but I can't pay because of the cancer, and losing my job, and my hair, and my wife, and my family, and my house and all."
By the way, as a practice pointer, it's probably a bad idea to write a pity pitch to a huge institutional creditor; they have none. And, yes, really. They are rotten enough to use that letter against you.
Tear stains on the paper and all.
No, I'm not kidding.
There is an interesting new case on this issue, and here you can read much of that opinion.
Should you breathe easy?
Never breathe easy. You've seen scary movies, right? It's only after you relax that the bad guy with the butcher knife shows up!
Here's why: on some days, and on some facts, the statute that governs credit card debt might be
12-548. Contract in writing for debt; six year limitation
An action for debt where indebtedness is evidenced by or founded upon a contract in writing executed within the state shall be commenced and prosecuted within six years after the cause of action accrues, and not afterward.On another day, it might be ARS 12-543, which applies a three year statute of limitations:
OR the Arizona Congress may just decide to pass HB 2412, which would make the statute for credit card debt in Arizona six years.
12-543. Oral debt; stated or open account; relief on ground of fraud or mistake; three year limitation
There shall be commenced and prosecuted within three years after the cause of action accrues, and not afterward, the following actions:
1. For debt where the indebtedness is not evidenced by a contract in writing.
2. Upon stated or open accounts other than such mutual and current accounts as concern the trade of merchandise between merchant and merchant, their factors or agents, but no item of a stated or open account shall be barred so long as any item thereof has been incurred within three years immediately prior to the bringing of an action thereon.
3. For relief on the ground of fraud or mistake, which cause of action shall not be deemed to have accrued until the discovery by the aggrieved party of the facts constituting the fraud or mistake.
Or the Court having jurisdiction over the matter may find a "choice of law" clause in the twenty page tiny type contract written by the credit card company, which says that any debt with it is controlled by the law of the state with the longest statute of limitation in the country.
After all, credit card companies have very smart, experienced, resourceful and dedicated lawyers; not very compassionate toward you, of course, but you knew that.
Or the Court might decide that you had acknowledged the debt, by writing a letter to the credit card company that said, "I know I owe it, but I can't pay because of the cancer, and losing my job, and my hair, and my wife, and my family, and my house and all."
By the way, as a practice pointer, it's probably a bad idea to write a pity pitch to a huge institutional creditor; they have none. And, yes, really. They are rotten enough to use that letter against you.
Tear stains on the paper and all.
No, I'm not kidding.
There is an interesting new case on this issue, and here you can read much of that opinion.
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