Arkansas Statute of Limitations on Debt: What You Need to Know

Arkansas law puts a hard time limit on how long creditors can sue you for unpaid debts. Miss a credit card payment in 2019? By 2024, that debt is legally time-barred—meaning collectors lose their right to drag you to court over it.

But here's the catch: most people don't know these deadlines exist, and debt collectors bank on that ignorance. They'll threaten lawsuits years after the statute of limitations expires, hoping you'll panic and pay. You won't fall for it after reading this.

How Long Can Creditors Sue You in Arkansas?

Arkansas sets different deadlines based on your debt type. The clock starts ticking from your last payment or the date you defaulted, whichever came later.

Written Contracts: 5 Years

Credit cards, auto loans, personal loans, and mortgages fall under written contract rules. Arkansas Code § 16-56-111 gives creditors five years to file suit. After that, the debt becomes unenforceable in court.

Example: You stop paying your Discover card in March 2020. By March 2025, Discover cannot legally sue you for that balance. They can still ask, but they can't win in court.

Oral Agreements: 3 Years

Verbal promises to repay money,like borrowing cash from a friend who later hires a lawyer,carry a three-year window under § 16-56-115. These cases are rare but not unheard of in family business disputes.

Medical Debt: 3 Years

Hospital bills and doctor fees also expire after three years in Arkansas. This shorter timeline reflects the state's recognition that medical debt often blindsides people who can't plan for it.

A 2023 study found that 23% of Arkansas adults carry medical debt, with the average balance around $2,800. Most don't realize their three-year protection.

Judgments: 10 Years

Once a creditor wins a lawsuit and gets a court judgment, the game changes. That judgment lasts 10 years in Arkansas and can be renewed for another decade. Judgments allow wage garnishment and bank levies, so you want to avoid them at all costs.

What Happens When Your Debt Expires

Time-barred debt doesn't vanish. It just loses its teeth.

Collectors can still call you. They can report the debt to credit bureaus for up to seven years from your first delinquency. They can send letters and ask for payment. What they cannot do is sue you and win.

But they'll try anyway. Many collection agencies sue on expired debts because defendants either don't show up to court or don't know how to use the statute of limitations as a defense. You need to actively raise this defense in your court response.

If You Get Sued for an Old Debt

Never ignore a lawsuit, even if the debt is ancient. Ignoring it guarantees a default judgment, which resets the clock and gives collectors 10 years of enforcement power.

Step 1: Calculate the Exact Date

Dig up records to determine your last payment date. If you made a $50 payment two years after defaulting, that $50 payment restarts the entire five-year clock. Be precise.

Step 2: File an Answer

Arkansas gives you 30 days to respond after being served. Your written answer to the court should include an affirmative defense stating the debt is time-barred under Arkansas Code § 16-56-111 (or § 16-56-115 for oral contracts).

You don't need a lawyer to file an answer, though one helps. The key is getting your response on record before the deadline.

Step 3: Bring Proof to Court

On your court date, bring bank statements, payment records, or account histories showing when the statute expired. Judges won't research this for you,you must present evidence.

If you prove the debt is time-barred, the case gets dismissed. The collector eats their court costs, and you walk away clean.

Common Tricks Collectors Use

Debt buyers know most people don't understand limitation periods. They exploit that gap with tactics designed to confuse or intimidate you.

Threatening Lawsuits on Expired Debts

A collector calls and says, "Pay $3,000 by Friday or we're filing in court." The debt is from 2017. They're bluffing,but the threat works on people who don't know better.

If they do sue on an expired debt and you fail to respond, they win by default. Your silence costs you everything.

Asking for Partial Payments

"Just send us $100 to show good faith." That single payment can restart the statute of limitations in Arkansas. Courts have ruled that any payment, no matter how small, can be seen as acknowledgment of the debt and reset the clock.

Never pay a penny on an old debt without consulting a lawyer first.

Using Vague Language

Collectors say "you still owe this" without specifying whether they can sue. They hope you'll assume legal action is imminent. Ask directly: "Is this debt within the statute of limitations?" Their answer,or refusal to answer,tells you everything.

How to Protect Yourself

Even when you're in the right, you must act. Arkansas law protects you, but only if you invoke that protection.

Request Debt Validation

Within five days of first contacting you, collectors must send a validation notice under the Fair Debt Collection Practices Act. This notice states how much you allegedly owe, the creditor's name, and your right to dispute.

If they skip this step, file a complaint with the Consumer Financial Protection Bureau and the Arkansas Attorney General's office.

Send a Cease Communication Letter

You can tell collectors to stop calling. Send a written cease-and-desist letter via certified mail. They must honor it, though they can still sue you. Keep a copy for your records.

Never Admit the Debt

When collectors call, don't say "Yes, I owe it" or "I'll pay when I can." These statements can be used against you in court and may restart the statute of limitations in some contexts. Say nothing except: "Send me validation in writing."

Check Your Credit Report

Pull your free reports from all three bureaus at AnnualCreditReport.com. Debts should fall off seven years after your first missed payment, not seven years from when the account charged off. If you see outdated debts, dispute them in writing.

When Bankruptcy Makes Sense

Some debts you can't wait out. If you're drowning in collections, lawsuits, and wage garnishments,and the statute hasn't expired yet,bankruptcy might be your fastest exit.

Chapter 7 wipes out most unsecured debts in four months. Chapter 13 gives you three to five years to repay what you can afford, then discharges the rest. Both stop lawsuits cold the day you file.

Arkansas's exemptions let you protect your home equity (unlimited if less than 2.5 acres), car (up to $1,200), and personal property (up to $500 per item). You won't lose everything.

If you're facing multiple lawsuits or already have a judgment against you, consult a bankruptcy attorney before the situation worsens. Many offer free consultations. You can also use our bankruptcy screener to see if you qualify in under two minutes.

What If You Actually Owe the Debt?

Maybe the debt is legitimate and recent. You want to pay but can't afford the full balance. You have options beyond waiting for the statute to run.

Negotiate a Settlement

Debt collectors buy old accounts for pennies on the dollar,often 5-10 cents per dollar owed. They'll accept 30-50% of the balance if you offer a lump sum. Get any settlement in writing before you pay, and make sure it states the debt will be marked "paid in full" or "settled," not just "paid."

Set Up a Payment Plan

Some collectors offer installment agreements. Read the fine print carefully. Confirm the plan won't restart the statute of limitations or add interest that balloons your total.

Consider Credit Counseling

Nonprofit credit counseling agencies can negotiate lower interest rates with creditors and consolidate your payments into one monthly bill. They don't hurt your credit like debt settlement companies do.

Does Time-Barred Debt Affect Your Credit?

Yes and no. The statute of limitations and credit reporting follow different rules.

Negative marks stay on your credit report for seven years from the date of first delinquency. The statute of limitations for lawsuits is shorter for most debts,three to five years. So you might have a debt that collectors can't sue you for, but it still drags down your credit score.

Once seven years pass, the debt must be removed from your report. If it's not, dispute it with the credit bureaus. Use certified mail and keep copies of everything.

Arkansas-Specific Considerations

Arkansas law has a few quirks worth noting.

No Revival by Acknowledgment

In some states, simply acknowledging a debt in writing can restart the clock. Arkansas courts have been stricter,they typically require a new payment, not just words. But don't test this rule. Avoid acknowledging old debts in any form.

Judgment Liens on Property

If a creditor wins a judgment, they can place a lien on your real estate. When you sell or refinance, that lien gets paid from the proceeds. This is one reason you never want a judgment, even on an old debt.

Wage Garnishment Rules

Arkansas allows wage garnishment up to 25% of your disposable income or the amount by which your weekly income exceeds 30 times the federal minimum wage, whichever is less. Garnishment only happens after a judgment, so fighting the lawsuit early is critical.

Resources for Arkansas Residents

If you need help beyond this article, here's where to turn.

• Arkansas Legal Services Partnership: Free legal help for low-income residents facing debt collection or other civil matters. Visit arlegalservices.org.
• Arkansas Attorney General Consumer Protection Division: File complaints against abusive debt collectors at ArkansasAG.gov.
• National Association of Consumer Advocates: Find a consumer attorney who specializes in debt defense at consumeradvocates.org.
• Talk About Debt Bankruptcy Screener: See if bankruptcy makes sense for your situation in under two minutes at talkaboutdebt.ai/file-bankruptcy/screener.

You're not powerless here. Arkansas law gives you real defenses, but only if you know they exist and use them before deadlines pass.