Debts don't last forever. Whether you have paid down a portion of a debt or not made a single payment, the clock is always ticking for your creditors. After the statute of limitations passes, you cannot be sued for an outstanding debt. The state government in Alaska is responsible for setting the statute of limitations on debts.
Account Types
In Alaska, as in most states, the statute of limitations varies depending on the type of debt. Alaska law stipulates statutes of limitations for oral contracts, written contracts (including auto loans and installment loans), promissory notes, judgments and open accounts, which include credit cards.
Time Limits
Under Alaska law, the statute of limitations on oral and written contracts and promissory notes is six years. Judgments have a 10-year statute of limitations, while open accounts have a three-year limit.
Applying the Limits
Under federal law, creditors cannot sue you to collect on a debt after the statute of limitations passes. They can, however, continue to pursue the debt out of court by calling you or sending letters requesting payment. They cannot compel you to pay through the courts, but you should be prepared to prove that the statute of limitations is over should they still attempt to file a lawsuit. You should also check your original credit agreement. Under the Fair Debt Collection Practices Act, creditors can stipulate that the laws in the state in which the company is located are the laws that govern the agreement. In that case, the statute of limitations laws of the state in which your creditor is located apply to your account, no matter where you live.
Re-Aging Debt
The clock on the statute of limitations starts as soon as your account becomes delinquent. You can, however, re-start the clock, or "re-age" the debt by making a payment, even a small one. A payment is an acknowledgment of the debt. The statute of limitations countdown would then restart if your account became delinquent again.
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