Credit Card Debt After 7 Years
Posted on
June 17, 2009
at
5:23 am
What happens to debt after 7 years? Is it going to be forgiven or written off...and most of all what happens to the debtor?
Posted on
June 17, 2009
at
5:31 am
It might be referring to your credit report. After 7 years, it should not show on it anymore, although it still may--in which case, you have to contact the credit reporting bureaus to have it removed.
Posted on
June 17, 2009
at
5:36 am
I agree with msissbedingfield, and according to the FCRA, negative information such as credit card debts, can stay in your credit report for a span of 7 years. If it is still there after that time limit you can always dispute it with the credit bureaus and get it erased.It could also refer to the statute of limitations on your state. SOL as it is called varies from state to state--and it is with regards to the allowable time for collection agencies to go after you to collect. That after 7 years, that SOL has expired, and they may not contact you again regarding the same issue.
Posted on
June 17, 2009
at
5:41 am
And as for the debt itself, you are always liable for it, unless you are able to work out a repayment plan or settlement agreement with the creditor, it's in their discretion whether to sue you or not and...usually if the debt is 6 years old, the original creditor sells the debt to the debt collectors, it means that they really want their money back, and failure to communicate with the debt collectors might end up in court. Don't worry though, it's a process, you can always negotiate the debt.
Posted on
June 17, 2009
at
5:43 am
So..then, when the debt is passed on to the debt collectors...it resets the 7 years?
Posted on
June 17, 2009
at
5:48 am
No. Under the FCRA that negative item can only stay on your credit report 7 years from the date of delinquency or after the last credit activity. The debt collectors activity is not considered part of your credit activity, so they can't touch the items on your report.
Posted on
June 17, 2009
at
5:54 am
And again, the SOL varies from state to state, it could be 3 years for some and 7 to some. So if a debt collector contacts you for an old debt (assuming that the debt collection agency is legitimate), the first thing that you should do is check your state's SOL. By legitimate, I meant that when it contacted you -the agent identified himself/herself properly, as well as from which company he/she is from, and for what purposes you are being contacted on. After the call (within 5 days) you should be receiving a letter from the agency containing the amount of debt that you owe, your creditors information, and what you can do to dispute it. It should also state that you can request for the debt to be verified in 30 days.
Posted on
June 17, 2009
at
5:58 am
Thank you for the info everybody, I really appreciate them, I have one more question, so if the statute of limitations is up on my state, and my creditors did not serve me a lawsuit ...the debt collectors would stop hounding me?
Posted on
June 17, 2009
at
6:02 am
Not necessarily. They might still try their luck on you. So whatever you do, do not admit to the debt and never ever give your word that you are going to pay it off. Once the SOL on your state is up you are no longer legally obligated to repay the debt. What you can do with the collection agencies is write them a simple cease and desist letter and once they've received it, they know that they can't contact you anymore.
Posted on
June 24, 2009
at
12:54 pm
I believe there are different SOL for different items. Student Loans stay on forever. Tax Liens are another stay on forever negative. Items like credit card debt, mortgages, car loans, credit collection activity, bankruptcy will linger for 7 years. Trust me, I know. The best thing to do is each year get your free credit reports and then check when the items are scheduled to fall off. Sometimes they will fall off sooner (around 5 years) if requested. The key thing is to make sure that the credit bureau DOES take it off when they say it will. Be sure to keep all your reports as reference. Good Luck!
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