When will credit be restored?

Question

I had some credit card and auto debt from 2001 that I have never paid off (and I don't plan to). I have stopped getting calls and notices in the mail about these debts.

1. Can they still come after me for the balances? If yes, how much time do they have left to collect?

2. When can my credit be restored, or at least used again?

It's all from the state of Colorado

Answer 1

For COLORADO

Oral Contract (6 years) - You agree to pay money loaned to you by someone, but this contract or agreement is verbal; i.e. no written contract ("handshake agreement"). Remember, a verbal contract is legal, but tougher to prove in court.

Written Contract (6 years)- You agree to pay on a loan under terms written in a document, which you and your debtor have signed.

Promissory Note (6 years)- You have agreed to pay on a loan via a written contract, just like the written contract. The big difference between a promissory note and a regular written contract is that the payments are scheduled and interest on the loan is also spelled out in the promissory note. An example of a promissory note is a mortgage.

Open Ended Accounts (6 years)- These are revolving lines of credit with varying balances. The best example is a credit card account.

Why should you care about the Statute of Limitations?

Every day, consumers pay off collection accounts and charge-offs which they do not have to pay off because the statute of limitations has already expired for the open account. Consumers pay off these accounts because the accounts still appear on their credit reports.

This information can be a powerful weapon in unburdening yourself of old debts, as creditors have a limited time in which to sue you. Remember: the Statute of limitations begins to run from the day the debt - or payment on an open-ended account - was due. Also, this has nothing to do with how long an negative credit item can remain on your credit report.

Consumers also pay off these accounts when they are not on their credit reports. Even though an account was removed from their credit file, a collector watched their credit report for any activity (actually the computer was watching any credit activity). When the collector spotted the activity, he called the consumer for payment. All the consumer needed to say to the collector was, "I have an absolute defense--the statute of limitations has expired."

The statute of limitations does not cause your debt to go away after it expires. If the creditor files suit, the consumer has an absolute defense. The consumer must offer the new evidence to avoid a judgement. The evidence will consist of papers the consumer files to support his claim. If the creditor sues you, and you do not prove to the court that the statute of limitations expired, you will have a lost lawsuit and a judgement against you.

When does the statute of limitations start?

You might be asking yourself, "It has been such a long time since my "open account" has had any activity. When does my statute of limitations started ticking." Use your credit report as a reference. Your credit report will tell you the date of last activity for your account. You will have your credit report with the date of last activity and a certified letter stating that the statute of limitations expired.

Depending on what state you live in, if you make a partial payment, you could be postponing the statute of limitations' taking effect on your collection account or charge-off. A collector might call you one day and say you waived your rights when you made a deal with the collection agency. Do not take anything a collector tells you for granted. Make them prove it to you, in or out of court. For about half the population, the statute of limitations started ticking the day they made the last payment for their account.

What state should I use in figuring out the Statute of Limitations?

According to the law the only relevant jurisdictions are where the consumer signed the loan application and where the consumer currently lives (bank location is irrelevant). If those states are different, I believe the creditor has the choice of where to sue and can select the state with the longer SOL. There may also be an argument that the contract was signed "under seal" which might lead to a longer Statute of Limitations than an ordinary contract.

Summation:

Even though a debt is an absolute promise to pay, if the statute of limitations expiring is in force and the creditor tries to force you to pay the debt, you have the right not to fulfill the promise (debt).

Statute of Limitations for JUDGEMENTS (20 years @ 8% interest)

A judgement occurs when a creditor takes you to court and sues you for money you owe them. They must do this before the Statute of Limitations has expired for the original debt.

The court will try and contact you via mail, but they do not need proof that you were contacted, and you do not have to be present in order for your creditor to win. The creditor only has to provide proof that the debt is owed. You want to avoid this at all costs, for it is after a judgement is issued that a creditor can seize bank accounts, assets or garnish wages. In addition, it is easy to renew a judgement once its SOL has past. If the creditor is diligent about his renewals, you could find yourself in the position where a judgement against you never expires. A judgement will drop off your credit report after 7 years, but your creditor can pursue you until the debt is paid.

Answer 2

You fix credit an identical way you construct credit to commence with. you ought to borrow funds and make funds on time. undesirable monetary statement. that is the thanks to procure contained in the mess contained in the first position. you ought to borrow funds and make funds to get a intense fico (i love debt) score that you could bypass out and borrow extra money and make extra funds. you'll not in any respect get ahead financially borrowing funds and making funds. the merely time you ought to borrow funds is for a house. you could do this devoid of a fico score. it is referred to as guide underwriting. it is no longer a sub best loan. it is the way living house loans were givin' in the previous each and every of the fico score worship. you will get the bottom costs of pastime available. stay far flung from new autos. They lose value and also you lose funds once youchronic off the lot. they shop dropping value and also you shop dropping funds year after year. shop for a good funds automobile. Take the money you shop from no longer having a fee and put in the monetary company for an emergency fund. That way you do not ought to borrown funds contained in the progression of an emergency.

Answer 3

Your credit will be restored in 7 years. Pray that you survive the black marks in your credit file.

Yes, they can and will come after you for the balances. Try to work out payment arrangements so that the wrath of your creditors does not fall upon you.

Answer 4

Credit won't be restored until its either paid or removed by the one it was owed to. Sometimes these "bills" get sold to groups who make a living getting people to pay these (and make their life miserable)

It will be there forever until either of the two conditions mentioned above happen. So they (or whoever owns the "bill") can require you to pay forever.

Answer 5

Selfish little twit, aren't you?

Why not just lie in the bed of feces that you have created and deal with it instead of trying to weasel your way out of your responsibilities in life?

Answer 6

Hopefully - never.

All you are doing is raising everybody's else's interest rates.