Start My Answer

Statute of Limitations on Debt Collection in New Mexico

Melissa Lyken | December 12, 2023

Summary: Debt collectors like to come after debtors for expired debts. Before you make any payments, find out if that debt collector filed a lawsuit that the court will happily dismiss.

Have you recently received a message from your creditor asking you to pay an old, unpaid debt? You may have forgotten about the debt, or you may be confused about how the debt collector can still collect on your debt even though significant time has passed. A creditor can sue a debtor for an outstanding debt and breach of contract for a designated time-frame.

Once the creditor has taken this action, the statute of limitations timeline for debt collection also begins. The statute of limitations is the period of time in which the creditor can file a lawsuit and legally request that the debtor pays their unpaid debt. Once the statute of limitations passes, it becomes a time-barred debt, and the creditor cannot legally enforce it.

If you are wondering whether you are still legally obliged to pay your debt or if it has become a time-barred debt, then read on for further information about the statute of limitations for debt collection in the state of New Mexico.

Make the right defense with SoloSuit and win in court.

Categories of Debt and the Statute of Limitations in New Mexico

Nebraska Statute of Limitations
on Debt

Debt Type

Deadline in Years

Written Contracts


Oral Contracts


Promissory Notes, Bills of Exchange or Bonds


Contracts for Sale of Personal Property


Mortgage Debt


Credit Card


Auto Loan


State Tax


Domestic and Foreign Judgment


Other Creditors


Source: Findlaw

The statute of limitations refers to the specific time frame in which a debt collector or creditor can hold you accountable for a debt owed. As with other states, New Mexico has established different periods within its statutes of limitations that range from four to ten years depending on the type of debt. Continue reading to get a thorough understanding of the different kinds of debt in New Mexico and their prescriptive periods.

Written Contracts – 6 years

For debts based on a written contract, the creditor has six years to file a collection lawsuit against the debtor for their unpaid debts. An example of this would be a medical debt or other debts evidenced by a written agreement.

Oral Contracts and Open-Ended Accounts – 4 years

When the debt is based on a verbal agreement, the prescriptive period given to the creditor for filing a collection lawsuit is four years from the time the debtor defaulted on their obligation.

Promissory Notes, Bills of Exchange or Bonds – 6 years

When the claim of the creditor is founded on promissory notes, bills of exchange, or bonds, they have a period of six years to file a lawsuit.

Contracts for Sale of Personal Property – 4 years

For this kind of debt, the creditor has a four-year time frame to legally collect from the debtor. However, this period may be reduced to a one-year prescriptive period if agreed to by both parties, but it may not exceed four years.

Mortgage Debt – 6 years

Debts based on a mortgage contract have a prescriptive period of six years.

Credit Card – 4 years

The creditor may collect the credit card's outstanding balance within four years from when the debtor defaults.

Auto Loan – 4 years

For debt due from auto loans, a creditor may file a collection lawsuit within four years from the time the debtor defaulted.

State Tax Debt – 10 years

The state has a ten-year prescriptive period in which they can file a collection lawsuit against a delinquent citizen, beginning when the latter did not file their tax return or pay the correct amount of tax.

Domestic and Foreign Judgments – 14 years

The creditor may enforce a judgment on domestic or foreign debts within fourteen years from the time the judgment is entered.

Other Creditor – Debtor Transactions – 4 years

For all other types of debt not specifically stated above, the creditor has a four-year prescriptive period to file a collection suit and pursue a claim against their debtor.

Respond to debt collection lawsuits in 15 minutes with SoloSuit.

Debt Collectors Have a Set Time-Frame to Hold You Accountable

Upon the lapse of the statute of limitations for each kind of debt, if the creditor did not file a collection lawsuit to collect from the debtor, the debt is now time-barred. Consequently, the creditor is now barred from filing a court action or seeking help from the court to enforce their claim against the debtor. Even though the statute of limitations may have passed on your debt, many debt collectors still pursue lawsuits. So it is critical for you to include this defense in your suit if it applies to your circumstance. The debt is not extinguished and will remain in the debtor's credit report for six years. However, the debtor is not legally obliged and will not be forced to pay the debt that they owe.

Use the Statute of Limitations on Time-Barred Debts

When debt becomes a time-barred debt, the creditor may still demand that the debtor pays the old debt. The debtor can still pay it if they feel that they are morally obliged to pay it. However, undertaking a payment or even making a new promise to pay will affect the debt's lapsed statute of limitations.

If you seek to use the statute of limitations as a defense in your lawsuit, you must take into account any payments that you may have made during the statute of limitations. Many debtors are unaware that making payments during the statute of limitations resets the clock on the prescriptive period.

Upon making a partial payment or making a new promise to pay a time-barred debt, the statute of limitations will be reset, provided that the payment or the promise is made in writing and signed by both of the parties concerned. However, it will not extend to the lien of any mortgage on real estate or any interest therein given to secure the original indebtedness.

Suppose four to six years have already passed from the time you defaulted on paying your old debt. In that case, there's a significant possibility that it is now a time-barred debt, and the creditor who is calling you may be trying to restart the statute of limitations period. Before paying an old debt, make sure to first check the statute of limitations for New Mexico.

What is SoloSuit?

SoloSuit makes it easy to respond to a debt collection lawsuit.

How it works: SoloSuit is a step-by-step web-app that asks you all the necessary questions to complete your answer. Upon completion, you can either print the completed forms and mail in the hard copies to the courts or you can pay SoloSuit to file it for you and to have an attorney review the document.

Respond with SoloSuit

"First time getting sued by a debt collector and I was searching all over YouTube and ran across SoloSuit, so I decided to buy their services with their attorney reviewed documentation which cost extra but it was well worth it! SoloSuit sent the documentation to the parties and to the court which saved me time from having to go to court and in a few weeks the case got dismissed!" – James

Get Started

>>Read the FastCompany article: Debt Lawsuits Are Complicated: This Website Makes Them Simpler To Navigate

>>Read the NPR story on SoloSuit: A Student Solution To Give Utah Debtors A Fighting Chance

How to Answer a Summons for debt collection in all 50 states

Here's a list of guides on how to respond to a debt collection lawsuit in each state:

The Ultimate 50 State Guide

Guides on how to resolve debt with every debt collector

Are you being sued by a debt collector? We’re making guides on how to resolve debt with each one.

Resolve your debt with your creditor

Some creditors, banks, and lenders have an internal collections department. If they come after you for a debt, Solosuit can still help you respond and resolve the debt. Here’s a list of guides on how to resolve debt with different creditors.

Settle your medical debt

Having a health challenge is stressful, but dealing medical debt on top of it is overwhelming. Here are some resources on how to manage medical debt.

Guides on arbitration

If the thought of going to court stresses you out, you’re not alone. Many Americans who are sued for credit card debt utilize a Motion to Compel Arbitration to push their case out of court and into arbitration.

Below are some resources on how to use an arbitration clause to your advantage and win a debt lawsuit.

Stop calls from debt collectors

Do you keep getting calls from an unknown number, only to realize that it’s a debt collector on the other line? If you’ve been called by any of the following numbers, chances are you have collectors coming after you, and we’ll tell you how to stop them.

Federal debt collection laws can protect you

Knowing your rights makes it easier to stand up for your rights. Below, we’ve compiled all our articles on federal debt collection laws that protect you from unfair practices.

Get debt relief in your state

We’ve created a specialized guide on how to find debt relief in all 50 states, complete with steps to take to find relief, state-specific resources, and more.

Debt collection laws in all 50 states

Debt collection laws vary by state, so we have compiled a guide to each state’s debt collection laws to make it easier for you to stand up for your rights—no matter where you live.

Statute of limitations on debt state guides

Like all debt collection laws, the statute of limitations on debt varies by state. So, we wrote a guide on each state’s statutes. Check it out below.

Statute of Limitations on Debt Collection by State (Best Guide)

Check the status of your court case

Don’t have time to go to your local courthouse to check the status of your case? We’ve created a guide on how to check the status of your case in every state, complete with online search tools and court directories.

How to stop wage garnishment in your state

Forgot to respond to your debt lawsuit? The judge may have ordered a default judgment against you, and with a default judgment, debt collectors can garnish your wages. Here are our guides on how to stop wage garnishment in all 50 states.

How to settle a debt in your state

Debt settlement is one of the most effective ways to resolve a debt and save money. We’ve created a guide on how to settle your debt in all 50 states. Find out how to settle in your state with a simple click and explore other debt settlement resources below.

How to settle with every debt collector

Not sure how to negotiate a debt settlement with a debt collector? We are creating guides to help you know how to start the settlement conversation and increase your chances of coming to an agreement with every debt collector.

Other debt settlement resources

Personal loan and debt relief reviews

We give a factual review of the following debt consolidation, debt settlement, and loan organizations and companies to help you make an informed decision before you take on a debt.

Civil law legal definitions

You can represent yourself in court. Save yourself the time and cost of finding an attorney, and use the following resources to understand legal definitions better and how they may apply to your case.

Get answers to these FAQs on debt collection

How-to debt guides

Learn more with these additional debt resources