Alaska Debt Relief
Alaska Credit Card Debt law allows six years for a creditor on an open-ended account to sue the cardholder for non-payment. The Statute of Limitations (SOL) starts on the last date the unmade payment was due. The SOL starts again upon any partial payments made. Alaska allows 20 days for the Defendant to file an answer to a summons, which should be sent via certified mail
In Alaska, the creditor can seize the debtor’s real and personal property to enforce the judgment. Generally, the creditor has five years to enforce a judgment in this way, but exceptions are sometimes allowed if there is good reason for the delay. Judgments remain in force for five years and accrue interest at 5% annually.
Seizing property to enforce a judgment makes for bad publicity and can be very expensive, so creditors often prefer to garnish accounts and wages to secure payment. Alaska law allows an individual exemption of $402.50 weekly from wages, so that the debtor has money to live on. If the debtor is the sole earner for a family, the exemption is $602.50. Homestead exemptions are allowed up to $54,000.
Alaskans should be aware that some credit card contracts might contain a “confession of judgment.” Such contract language means that the debtor has no defense against a lawsuit, allowing the creditor to win a judgment for the owed debt regardless of other circumstances.
Debt Settlement is a popular option for avoiding suit. It allows debtors to pay the debt more quickly, free of interest. By avoiding bankruptcy and a lengthy lawsuit, consumers can resume their lives as normal while paying down the debt.