is it true if one does not pay a bill it's gone in 7 years?

Answer 1

If the date of the last activity on the debt is over seven years old, they cannot list it on your credit report anymore.
In most places, if it is over four years old, the statute of limitations is over, and they cannot get a judgement on you.
I skipped out on my bills when I was young, and after seven years of no activity (dont make even one payment, or even a payment plan. Just hang up the phone if they call you) I wrote to the three credit agencies and had them remove all of it from my credit report.
I didn't make the law. But it sure did help me out.
That's why after a few years, when they start writing you letters saying if you pay twenty percent of the amount, they will write off the rest, it's a bad idea. That would start the seven years all over again.

Answer 2

An interesting new way that creditors are dealing with old debts and old charge offs. . .they are rejuvenating or re-aging the accounts owed on. Or selling your loan to collection agencies or other creditors in which case, the loan is re-aged everytime this happens so that it remains on your credit report much longer than 7 years. Above board? No, but this has become an increasing problem as of late. I would strongly suggest that you contact a reputable attorney and or non-profit credit counseling agency. Better yet, pay what you owe if you can.

Answer 3

I have had this happen to me, you would think that the law states that you can only hold a bill on your credit for 7 years right? Wrong, what the companies do to be sneaky, they sell your debt to another company almost at 7 years, so that way you don't "technically" owe them anymore, you owe the new company. So it kind of rolls over for another 7 years. And again, and again, for as long as it stays legal to sell it off.

Answer 4

Absolutely TRUE.

I had an outstanding debt for State Tax in AZ that was unknown to me ($7,800). I was out of the country in the Middle East for 7 years and returned earlier this year.
Just last month I found that there was a debt on my credit report and then found out it was this tax liability from AZ.
I then went to the tax office in Phoenix to pay out the debt and found that they could not accept it as it had been more than 7 years, so the debt was no longer current.
I received a letter from them to this end and sent it off to the credit report company and they have cleared it off my credit report.

Answer 5

Not necessarily. If the original bill is not paid for a few months, it generally goes to a collection agency. Any given agency may play with it for a while, in an attempt to get something back. Meanwhile, it is reported to the credit authorities, whise reports make it difficult to get additional credit. Some debts, taxes, etc. they keep coming for it...

Answer 6

No that is not true, that bill can be resubmitted to the credit bureau and it will add another 7 years and then they sell the bad debt to a collection company, then in turn they put your name in the credit bureau, Take it from me I had a repo from Ford motor credit in 1992, and it is still on my report

Answer 7

Bankruptcy goes away in seven years. Not paying a bill stays on you record until it's paid, and even after that it will show that you didn't pay it for a long time. Future lenders may not trust you then.

Answer 8

That is not true. It takes 10 years for adverse credit to be removed and even then they may still show up they just usually will not be considered as against your current credit score after that amount of time

Answer 9

No that's not true, bill's last foever at least in NY. But here I don't think any major company will let you slide for 7 yrs, they'll sue ya for the money, if they still have the records!

http://www.total-knowledge.com/~willyblues/

Answer 10

An urban legend says if you don't pay a bill for a few months, it goes to Collection Agency.

But it's probably just superstition.