If you don't pay off your bad credit, will it still go away in 7 years???

Question

I wanted to know it this was true..

Answer 1

Ya'know...I must spend a 3-4 hours a day here correcting all of the bad answers. Lucky I have the time to throw away. But people are in need of help here, so I will continue to correct you morons who refuse to research your responses before answering.

Thank goodness for people like Sal G and DaMan for helping me out. Read their responses again, they cover it very well.

Just one correction to Sal....After the Fair Credit Reporting Act was revised in 2003, there were some conflicting parts amended to it. To clarify it, the FTC Commisioners filed a position paper.

In it, they clarified the reporting period as 7 years, beginning on the date of the delinquency. You are confusing the "plus 6 months" part.

If you read it again carefully, you will understand that the intend is they can not report your debt to your history for 6 months. In other works, if you owed the bill on Jan 1, 1999, it can not appear on your credit report until June 1. But the reporting period begins on the "accrued" date, not the day it was placed on your report. Therefore, it still must come off on Jan 1, 2007.

Also, you may want to look at the link below, as it goes into a better explination of the Statute of Limitations and the reporting period, plus lists each states SOL timeframe.

Answer 2

It will go away 7 years after the last activity on the account. However, many creditors will sell off bad debt to collection agencies and that can start the 7 year clock ticking yet again.

Also keep in mind that the statute of limitations for collecting on debts varies from state to state as well as the type of debt. Even though it might drop off your credit record does NOT mean that they can't go after you for it in the future if the statute has not expired! If that collection action leads to a judgement it will be right back on your credit record!

Answer 3

Reading some of these answers makes me cringe!

First you question requires a two prong answer.

In regards to your credit report, it is true that a credit card account will drop off of your credit report seven years FROM THE DATE IT WAS REPORTED DELINQUENT.

Let me be clear. The measurement date is

NOT the date of last activity.
NOT the date you last talked to the creditor.
NOT the date you last paid the creditor.
NOT the date it was charged off.

The measurement date begins the day it was deliquent per the terms of the agreement.

In accordance with Section 605 of the Fair Credit Reporting Act (FCRA), no credit bureau may report a negative item on your report for longer than seven years (from the 1st date of deliquency) except for:

(1) tax liens
(2) bankruptcies
(3) certain federally subsidized student loans

Now, that deals with the credit bureaus.

Oh and one last thing.

It is quite possible.

You wait 6 years. The creditor brings you to civil court for your unpaid debt and obtains a judgment against you in year 7 (since it took one year to roll the court case through civil court system).

In year seven, the old debt drops off in accordance with Section 605 of FCRA, but the court judgment would stay on your credit report for another 7 years as well in accordance with FCRA!

The judgment gets 7 years and delinquent debt gets 7 years for a total of 14 years!

Lovely world, isn't it?

Now, in regards to your legal liability to pay. You are liable for the debt until it is paid. You are LEGALLY liable for the debt until the statute of limitation expires.

The statute of limitations will vary depending upon which state the said debt was consummated or originated.

Please bear in mind, however, that should you and the creditor communicate with one another before the statute of limitations expire, a whole new statute of limitations will begin.

To ensure that you don't disturb the statute of limitations, you must not respond to the creditor and you can not make payments to the creditor as each communique and/or payment will start a new statue of limitations period.

Answer 4

This info may be handy from www.wdfi.org
Accurate positive information can remain on your credit report forever, but commonly is removed after seven years. Accurate negative information can remain on your credit report for only seven years, with a couple of exceptions. A bankruptcy can remain on your credit report for 10 years. A judgment can remain on your credit report for seven years or until the statute of limitations expires, whichever is longer. In Wisconsin, the statute of limitations on a judgment can be up to 20 years.

Debts can be reported for the time periods mentioned above even if you paid the debt in full before the end of the allowed reporting time period. In other words, simply paying off an account does not remove it from your credit report. After you pay off an account the merchant can continue to report the account but now must indicate it is paid with a zero balance.

If you have accurate negative information on your credit report, there is no legal way to remove it except through time. Be wary of advertisements claiming to be able to "fix" your credit for a fee. These companies are usually scams.

The date on which the seven year reporting period begins depends on whether the creditor first reported the account to a credit reporting agency before or after December 29, 1997.

Reported Prior to 12-29-97

Regular Accounts
Late payments can be reported for seven years from the date the bill was due, not the date of last activity. For example, if a bill was due October 1, 1996 and you did not pay it until December 15, 1996, the seven-year reporting period begins October 1, 1996.

Collection and charge-off accounts
Can be reported for seven years from the date the merchant charged-off the account or placed for collection, which can be months or years after the account was initially due.

Reported After 12-29-97

All Accounts
Late payments, collection accounts and charge-offs can be reported for no more than seven years and six months from the date the debt should have been paid. For example, if a bill had a due date of October 1, 1999 but you never paid it, the reporting period still begins October 1, 1999, the date of the delinquency. If the merchant sent the account to collections on January 1, 2000, the account still can only be reported for seven and a half years from October 1, 1999, not seven years from the date it went to collections, as what would be permitted under the pre-December 29, 1997 law.

The federal Fair Credit Reporting Act (FCRA) is the law that governs the reporting of information on credit reports. With respect to credit reporting agencies, the Federal Trade Commission (FTC) enforces the Fair Credit Reporting Act. If you continue to have concerns regarding your credit report or credit reporting agencies, please contact the FTC at www.ftc.gov or call toll free 1-877-382-4357.

For more info visit this website I found online:
https://www.wdfi.org/wca/consumer_credit/credit_guides/HowLongDataReported.htm

Answer 5

I think it is 7 years from the last activity on the account... So if a collector calls and actually speaks to you I think that counts. I am pretty sure it has to be 7 consecutive years with no contact and no activity involving you. It may also be 7 years after a judgement is entered. In some cases you will have to contact the reporting agency yourself and have the item removed after the 7 years has elapsed...

Answer 6

The 7 year rule applies to filing bankruptcy. If you do not file bankruptcy and you just ignore paying your credit card bill it will never, never go away. The credit card company will continue to add interest and hound you for payment.

If you file bankruptcy (under the old law) the ding on your credit history stays for 7 years. I think the new law does not abolish your debt, I think you actually have to pay it off now. :)

Answer 7

Save YOUR MONEY! Pay OFF YOUR DEBTS as soon as possible (and that means sacrificing stuff You might like to do like dinners out, movies, etc...). Save that money. Pay off those debts, and YOU WILL BE TRULY FREE!

Otherwise, NO, YOUR BAD CREDIT WILL NOT GO AWAY unless YOU MAKE IT GO AWAY by (get this) PAYING IT OFF BY YOURSELF. That way, in 7 years you are paid up!

I bought an apartment when nobody thought I could hold on to it (well, besides my parents). I planned to save all I could, I worked 1 full time and 2 part-time jobs, and in 7 years I paid off my apartment and owned it free and clear. When I sold it, I was able to send a check for 85 thousand dollars to my folks (WOW, WHAT A GOOD FEELING THAT WAS) since they helped me make the down payment. God bless!

Answer 8

No, it won't go away. You will have increasingly more aggressive collectors call you until you pay. Although there is a time limit a collector can contact you, but there are tricks they can use to reset the clock, so they can call you forever. I think you are referring to if you have paid off your debt, it will not show up anymore in your credit report after 7 years.

Answer 9

Whoever said that to you is confused with bankruptcy laws and unpaid debts.

a. If you file for bankruptcy, your creditors may agree with you on a reduced debt bill...but you still have to pay.
b. If you don't pay off your debts (hence you get a bad credit rating), you're still liable for paying off those debts.
c. Any derogatory remarks on your credit report (late payments, unpaid bills, etc.) will remain on record for up to 7 years if you file for bankruptcy.

Answer 10

no. You have to pay it off. The only way your bills will "go away" is if you declair brankruptcy. But the banruptcy will stay on your record for 10 years.