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Does your credit card debt fall off after 7 years?

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2009-01-05 01:15:31
2009-01-05 01:15:31

The entry on a credit report will be (should be) deleted after the seven years expires. This does not mean the debt is not still valid and subject to collection procedures. Not true. Each state has a Statute of Limitations (SOL), usually around 4 years or so. After that they can scream and bi#ch, but can't file against you. Send them a Cease and Desist Letter with the date you quit paying, with a return signature requested. If they don't stop (but they probably will) contact your attorney generals' office to file a complaint. The ~7 years and 180 days clock begins to tick after the last time you paid on it. If you pay anything, even $1.00, you start the clock again. In a few states if you admit to the debt, the clock starts again. If you file bankruptcy it will take longer. If you use someone like CCCS and then can't pay, it will take longer. Student loans and a few other debts (like taxes and child support) have special rules. Count 7 years and 180 days, then check your credit. They must take the remainder off, by law. Remember, these agencies are not the government. They are private, for- profit companies who must follow the law.

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It does yes, but only for seven years after it happened. This is because the FCRA (Fair Credit Reporting Act) specifies that anything on your credit report can only be on it for seven years after inactivity. Inactivity means that you have not had anything to do with it. For example, lets say you had a delinquent credit debt and did nothing with it for seven years, it would fall off your credit report. But even if you paid 1 dollar to this debt 6 years and 364 days after it's date, it would be on for another seven years.

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No. Negative entries concerning all creditor debts remain on the consumer's credit report for the required 7 years.

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because a credit card purchase is a loan, a promise to pay back in the future. it does not fall under the definitions of money (m1,2,3)

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A good credit history will remain on your report. The negative credit reported will usually fall off in around 7 years. Judgments will stay on your credit report until they are satisfied.

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Unless there are some unusual circumstances, the answer would be a resounding YES. You might be confusing this issue with the amount of time some credit problems stay on your credit record. Here is more input and advice: * Why wouldn't you? It's your debt and it's your responsibility to pay it back. * Why would you? If it has been 7 years it will fall off your credit report, if you pay it now it will be on the credit report for another 7 years as a paid collection account. * Paying an old collection account will not extend the reporting period for another 7 years. This is a fallacy and is completely incorrect. The Fair Credit Reporting Act establishes time limits for how long derogatory information can be displayed on you credit. You can read the text for yourself by following links at www.ftc.gov * A charge off or other debt being expunged from a credit report does not make the debt invalid or uncollectible. States set SOL's pertaining to open accounts, verbal and written contracts and so forth. The expiration of the state SOL for credit card debt simply means that the creditor cannot file a lawsuit. Statutes of Limitations are subject to interpretation by the presiding judge and other circumstances, for example if the debtor paid even a token amount on a debt the SOL could be invalid. If sued it is the debtor/defendant's responsibility to envoke the SOL expiration as a defense, it is not automatically granted.

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Excellent question! The answer is YES! A debt can only be reported for seven years on your credit report, and then, by law, it must fall off your report. But this has nothing to do with the viability of the debt, which remains collectible, theoretically forever. However, once the debt passes the state statute of limitations, the collector may no longer sue to collect the debt. At this point, many collectors will write off the debt, and issue the debtor a 1099 form for the debt as income. Recent changes to the IRS tax laws make this more likely to occur. Once this happens, the debt is null and void, as it has been forgiven by the collector.

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credit card information should automatically purge from your credit bureau 6 years from the date of last activity. ie) if you pay your account in full (nil balance) on June, 2012 (DLA=date of last activity) and you do not use the account, the account should purge on June, 2018

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Yes. [ADDED-see below] The SOL depends on the state and type of agreement. Also note that credit card debt is called an open end account. The SOL for debts that have expired (no longer required to pay) is not the same SOL used by credit bureaus. Take a look at the following site http:/www.credit-repair-specialist.com/debt-collection-statute-of-limitation.html and http://www.blogblackstocks.com/2007/02/how_long_does_n.html Just because the SOL has expired on a debt does not mean you do not owe the debt. Very few states extinguish the debt on expiration of SOL. When the SOL expires it just means that they can not sue you and win if you show up in court and use expired SOL as a defense. They can continue to attempt to collect on a debt forever. Items fall off your credit report 7 - 7.5 years from the DOFD, which is set by the OC and is federally mandated. This date can not change. SOL is state mandated and varies from state to state.

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Creditors can try to collect forever. The SOL for filing suit is different for different kinds of debt in different states. Once this SOL is past, you can not successfully sue you for the debt. If you are sued after this SOL is up, you have to tell the judge that the debt is past the SOL. That along with a copy of a credit report showing the DOLA is more than the SOL. Most debt will then fall off your CR's after 7 years. The OC has 7 years from the charge off date to claim the loss on tax returns. Most credit card issuers will claim this the next year after to get the loss off their books. This is called 'writing off the debt'. At this point the debt is erased from the OC's general ledger. Once this happens, the debt no longer exists. A debt collector can still try to collect on it, but, you no longer have an obligation to pay. This is a good defense for Debt buyers.

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No, it will show on your credit report as a paid collection/judgement and will fall off of your credit report in 7 years. After you pay the debt keep all receipts and check your credit report in about 60 days to make sure they reported it as paid. Many collection companies never report it paid.

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