In most cases, the longer an account sits past due, the more difficult it is to collect. Thus, it is important for businesses to closely monitor their aging accounts.
How does time affect collectability? As time passes, it becomes more difficult to locate a debtor. The client or customer may move, change names, obtain a new telephone number or get a new job. In fact, they may do any of these things several times over the course of a year or two. With every change, the more difficult it is for you to recover the amount owed to you.
It is important to also remember the applicable statute of limitation for recovering debt. The statute of limitations on an account is the number of years you have to pursue an account from the last date of charge or payment (whichever is most recent). The statute of limitations on debt in Arizona puts a time limit on the amount of time you can be sued for a debt as follows:
- Oral contract = 3 years
- Written contract = 6 years
- Open ended accounts = 3 year
The faster you can move forward on an outstanding account, the more likely you are to receive the payment due to you. For help in recovering debt owed to you, contact Windtberg & Zdancewicz, PLC, to schedule an initial consultation.
The attorneys at Windtberg & Zdancewicz, PLC, provide clients with experienced legal representation. We handle many types of business disputes on behalf of both creditors and debtors. Our attorneys handle cases from pre-litigation negotiations through litigation, obtaining and enforcing judgments to collect what our clients are owed. We are experienced in creditor’s rights including garnishments, charging orders, attachment, property execution, trustee’s sales, foreclosures, judgments, judgment collection, domestication of foreign judgments, and creditor’s issues in bankruptcy cases. If you need assistance, or are interested in learning more, please contact us at (480) 584-5660.