Arkansas Statute of Limitations on Debt: Your Complete Guide
Arkansas limits how long creditors can sue you for unpaid debts. Most debts expire after five years, medical debt after two years, and oral contracts after three years. You must raise the statute of limitations as a defense in your Answer, or courts will issue default judgments against you.
Respond to LawsuitThe statute of limitations on debt in Arkansas varies by debt type. You have powerful legal protections if creditors sue you for old debts.
Most written contracts have a five-year limit. Medical debt expires after two years. Oral contracts carry a three-year deadline.
Defend Yourself Against Arkansas Debt Collectors
Being sued for debt in Arkansas? You have just weeks to respond before collectors win by default. Raise the statute of limitations defense properly with expert help.
Answer Your LawsuitUnderstanding these deadlines helps you defend yourself in debt lawsuits. You can get cases dismissed if creditors wait too long to sue.
Arkansas Debt Statute of Limitations by Type
Different debts have different expiration dates in Arkansas. You need to know which deadline applies to your situation.
| Debt Type | Time Limit |
|---|---|
| Medical debt | 2 years |
| Oral contracts | 3 years |
| Credit card debt | 5 years |
| Student loans | 5 years |
| Auto loans | 5 years |
| Personal loans | 5 years |
| Mortgages | 5 years |
| Court judgments | 10 years |
Source: Arkansas Code § 16-56-106, § 16-56-111, and § 16-56-114
How the Arkansas Statute of Limitations Works
The clock starts ticking from your last payment or account activity. Once the deadline passes, your debt becomes “time-barred.”
Time-barred debt doesn’t disappear completely. Collectors can still contact you about it. The debt may still affect your credit report.
However, you gain a powerful defense against lawsuits. Creditors cannot win a judgment against you in court.
Written Contracts Have a Five-Year Limit
Most consumer debts fall under written contract rules. Credit cards, personal loans, and auto loans typically have written agreements.
Arkansas law gives creditors five years to sue you. The period begins when you miss your first payment.
Written acknowledgment of the debt can restart the clock. Making a payment also resets the statute of limitations.
Oral Contracts Expire After Three Years
Oral agreements have shorter protection periods. You must prove no written contract exists.
Arkansas Code § 16-56-105 sets this three-year deadline. Debt collectors often struggle to prove oral contract terms.
Medical Debt Has the Shortest Window
Medical debt expires after just two years in Arkansas. The clock starts from your service date or last partial payment.
Arkansas Code § 16-56-106 provides this consumer protection. Verify the debt is legal and accurate before paying anything.
Why You Must Respond to Collection Lawsuits
Ignoring a lawsuit guarantees you’ll lose. Courts issue default judgments when you don’t respond.
Default judgments lead to wage garnishment and frozen bank accounts. Creditors can place liens on your property.
You must file an Answer even if the statute of limitations expired. The judge won’t apply this defense automatically.
Never Ignore a Court Summons
A summons means creditors filed a formal lawsuit against you. You have limited time to respond in writing.
The response deadline appears on your summons paperwork. Missing this deadline results in automatic loss.
Our partner Solo helps you file proper responses to debt lawsuits. You can raise the statute of limitations as your defense.
Request Debt Validation Immediately
Arkansas law requires collectors to validate your debt. They must send verification within five days of first contact.
Validation notices must include the amount owed and creditor name. You also receive instructions for disputing the debt.
Request validation in writing if you don’t receive it automatically. Keep copies of all correspondence for your records.
Send a Cease and Desist Letter
You can stop collection calls with a written cease and desist letter. Collectors must honor your request to stop contacting you.
Mail your letter via certified mail with return receipt. Keep a copy for your legal records.
Collectors can still sue you after receiving this letter. They simply cannot call or write anymore.
How Debt Collectors Operate in Arkansas
Understanding collector tactics helps you protect yourself. Knowledge is your best weapon against aggressive collection efforts.
Debt Collectors Work on Commission
Most collectors earn money based on what they recover. Higher collections mean bigger paychecks for them.
Collectors often have authority to settle for less than you owe. Settlements typically range from 15% to 35% below your balance.
Your negotiating position strengthens as debts age. Collectors become more willing to accept reduced amounts.
Your Debt Gets Sold Multiple Times
Original creditors sell unpaid debts for pennies on the dollar. Debt buyers then try to collect the full amount.
Your debt may change hands several times. Each new owner paid less than the previous buyer.
Older debts get cheaper with each sale. Collectors may accept small settlements on very old accounts.
Collectors Won’t Tell You About Time Limits
Debt collectors rarely volunteer statute of limitations information. They hope you don’t know your rights.
Collectors may pursue 15 or 20-year-old debts. They count on you not raising the expired statute defense.
You must raise this defense yourself in court. Research your debt’s age before responding to lawsuits.
Never Admit You Owe the Debt
Acknowledging debt can restart the statute of limitations. Even small statements can hurt your case.
Don’t promise to pay anything during collection calls. Avoid making partial payments on old debts.
Admitting responsibility gives collectors new legal ammunition against you. Stick to requesting validation instead.
Your Rights Under Federal Debt Collection Laws
The Fair Debt Collection Practices Act protects you from abusive tactics. Collectors face penalties for breaking these rules.
Collectors cannot call you at work if you tell them to stop. They cannot contact you before 8 AM or after 9 PM.
Harassment, threats, and intimidation are illegal. Collectors cannot use obscene language or threaten violence.
You Can Sue for FDCPA Violations
FDCPA violations give you grounds to countersue. You may recover damages and attorney fees.
The statute of limitations for FDCPA claims is one year. File your claim quickly after discovering violations.
Document every interaction with debt collectors. Save voicemails, letters, and detailed call notes.
Using the Statute of Limitations as Your Defense
The expired statute of limitations is an affirmative defense. You must raise it in your Answer to the lawsuit.
Judges cannot apply this defense automatically. You carry the burden of proving the debt is time-barred.
Successfully proving an expired statute gets your case dismissed. Collectors cannot garnish wages or freeze assets after dismissal.
Prove When Your Debt Became Delinquent
You need evidence showing when you last made a payment. Account statements and credit reports provide this proof.
Calculate the years from your last payment to the lawsuit filing date. Compare this timeframe to Arkansas statute of limitations rules.
Present your calculation clearly in your court response. Include supporting documentation with your Answer.
Watch for Statute of Limitations Restarts
Certain actions restart the limitation period. Making any payment resets the clock completely.
Written acknowledgment of the debt also restarts the timer. Signing settlement agreements can renew collection rights.
Be extremely careful before communicating with collectors. One mistake can give them five more years to sue.
Protect Yourself From Illegal Debt Collection
Arkansas consumers have strong legal protections. You don’t have to tolerate collector abuse or deception.
Our partner Solo helps you respond to lawsuits and negotiate settlements. You can defend your rights without expensive attorneys.
Know your deadlines and document everything. The statute of limitations is your most powerful defense against old debts.