In Arkansas, as in other states, the statute of limitations sets a deadline for creditors to take legal action to recover unpaid debts. Once this timeframe expires, creditors lose the right to sue the debtor for a court-enforced judgment. However, it’s important to note that the debt itself isn’t erased—creditors may still attempt to collect through non-legal means. Understanding Arkansas’ legal deadlines is critical for both businesses and collection agencies seeking to recover past-due accounts effectively.
How the Statute of Limitation Works
The statute of limitations limits the time a creditor has to sue a debtor for unpaid debt. This period typically begins on the date of the last payment or when the account became delinquent. Once the time runs out, the debt becomes “time-barred,” preventing legal enforcement through the courts. However, actions such as making a partial payment or acknowledging the debt in writing can reset or pause (toll) the statute, effectively restarting the clock.
What Are Arkansas’ Statute of Limitations Laws?
In Arkansas, the statute of limitations for debt collection varies based on the type of debt. Written contracts generally have a five-year statute of limitations, while open accounts (e.g., credit cards) have a three-year limit. Oral contracts and promissory notes also follow specific timelines. Additionally, court-ordered judgments in Arkansas are enforceable for up to 10 years and may be renewed.
Time Limits by Type of Debt in Arkansas
| Open Accounts | 3 | Credit card debt, lines of credit, and other revolving credit arrangements typically fall here. |
Includes credit card debt, lines of credit, and revolving credit accounts. The clock starts when the account is deemed in default.
| Written Contracts | 5 | Includes loans or other agreements documented and signed by both parties. |
Includes loans or agreements documented and signed by both parties. The limitation period begins after the first missed payment.
| Oral Contracts | 3 | Verbal agreements where terms are not formally recorded in writing. |
Verbal agreements with no formal documentation. Enforcing these in court may require additional proof.
| Promissory Notes | 5 | Debts confirmed by a signed note (e.g., some private loans, certain business debts). |
Signed notes that include a promise to repay (e.g., some private loans or business debts). The countdown starts from the first missed payment.
| Judgments | 10 | Court-ordered judgments can be enforced for up to 10 years in Arkansas and may be renewed if proper legal steps are taken. |
Tolling & Exceptions to The Statute of Limitations
Certain events or circumstances can pause (toll) or reset Arkansas’ statute of limitations:
Partial Payment or Acknowledgment of Debt: If the debtor makes a payment or formally acknowledges the debt after the clock starts, the limitations period may reset.
Leaving the State: If a debtor leaves Arkansas, the limitations period may be paused until they return or can be effectively served.
Fraud or Concealment: If fraud is involved, the statute may not begin until the fraud is discovered.
Frequently Asked Questions for Businesses & Creditors
1. How does the statute of limitations impact my ability to collect on past-due accounts?
Once the statute of limitations is up, the debt is considered “time-barred.” While you can still pursue collection informally, you cannot obtain a court judgment against the debtor. It’s often more fruitful to focus on debts still within the enforceable window.
2. How do I know if I’m still within the statute of limitations period?
Typically, the clock starts from the date of the last payment or when the account became delinquent. To determine the exact timeframe:
- Check your records for the last payment or invoice date.
- Review any applicable contracts or notes for specific terms.
- If unsure, consult a professional at DebtCollectorsInternational.com.
3. Should I try to collect a debt even after the statute of limitations expires?
You can still request payment through letters or calls, but a time-barred debt can’t be enforced in court. Prioritizing legally enforceable debts often yields better results.
4. Does making a partial payment or acknowledging the debt change the statute of limitations?
Yes. Acknowledgment or partial payment may reset the clock, giving you another window to seek legal enforcement.
5. How do I determine the type of debt and its specific time limit?
Different types of debt (open accounts, written contracts, promissory notes, or judgments) often have unique limitation periods. Review:
- The original agreement to see if it was written, verbal, or a promissory note.
- Any judgment documents for court-ordered deadlines.
- Relevant state statutes or consult a legal advisor for clarity.
6. What if the debtor moves out of the state?
The statute may be paused until the debtor returns or is otherwise reachable within your states jurisdiction. This extension can give creditors additional time to file suit.
7. What are my next steps if my debtor is within the statutory timeframe?
- Gather documentation (contracts, invoices, communications).
- Consult a debt collection agency for professional assistance.
Acting promptly and with proper legal guidance can greatly improve recovery rates.
8. Why should I consider using a professional debt collection agency?
- Expertise: Agencies understand collection laws, negotiation tactics, and best practices.
- Time Savings: Free up internal resources to focus on business growth rather than chasing debts.
- Higher Recovery Rates: Skilled collectors often have better success at recovery efforts.
9. How can Debt Collectors International help my business?
At Debt Collectors International, we specialize in global and domestic debt recovery, offering:
- Global & Domestic Debt Recovery: We have the expertise and network to handle cases worldwide.
- Comprehensive Legal Support: Stay compliant with state and federal laws.
- Skilled Negotiation Tactics: Maximize returns without harming client relationships.
- Transparent Reporting: Get regular updates on your debt recovery progress.
- No Recovery — No Fee: You only pay if we successfully collect your debt.
Need Help Collecting a Debt or Negotiating a Settlement?
Click here to request a free debt collection consultation with Debt Collectors International. Our specialists will assess your situation and propose effective strategies to recover overdue accounts—quickly and professionally.
Disclaimer: The information provided is subject to change as laws evolve. For legal advice related to debt collection in Arkansas, consult an attorney or reach out to Debt Collectors International.