My friend left the states 20 years ago to live aboard., he owed 45k to credit card companies and loan companies . If he goes back now can they try to collect from him?
2007-02-06 21:43:17 · 6 answers · asked by Anonymous in Business & Finance ➔ Credit
The short answer is no.
Bad debt "falls" off your credit report after 7-10 years. This doesn't mean that some unscrupulous collector won't try and collect after your friend returns and the credit bureaus are notified of his new address & job. As long as he does not respond to the notices (then it could be considered "reaffirming" the debt and it would be new again), he should have no problem.
And the statute of limitations on debt varies by law and is dependent on the state of residence, not the credit card company's policy.
Unless the creditors have proof he received notification (such as a certified letter) he should be in the clear.
2007-02-06 22:59:33 · answer #1 · answered by Gem 7 · 0⤊ 0⤋
i know in britain you can leave the country for a couple of years and your debt goes away with the exception of any government debt (ie student loans or benefit loans) and I think that if the debt compnay doesn't contact you for 6 years the debt is written off...but that's here in the UK!!! Your friend should get a credit report done and see whats on it before going back!!! I'd think after all this time the debt has disappeared!!! Good luck!!!
2007-02-07 05:59:33 · answer #2 · answered by secret_smile4u_only 3 · 0⤊ 0⤋
Who paid those debts that were unanswered for......I would not expect the people around where he used to live to be responsible for it, would you? Or maybe you would assume time cures all wounds, just leave it to the next generation to take care of everything for you. Maybe the credit companies will raise their rates for your children so that they can pay for your friend who decided to skip town.
2007-02-07 05:50:31 · answer #3 · answered by kaliroadrager 5 · 0⤊ 0⤋
Wow 20 years.
The statute of limitations has passed, so he is not required by law to "make good" on these debts He can still be sued and brought to court, but he can use the "statute of limitations" defense and no award will be made to the parties who want damages.
2007-02-07 07:49:31 · answer #4 · answered by DaMan 5 · 0⤊ 0⤋
Normally after a specifi period of time(specific period depends upon the bank's policy) these kind of debts become bed debts hence the account gets closed. I don think so the bank can collect the amount from your friend.
2007-02-07 05:48:30 · answer #5 · answered by GURU 3 · 0⤊ 0⤋
It is ancient history. He should check the statute of limitations on written contracts in the state he previously lived. I imagine it has long since expired. Furthermore, there will be no reference to anything on his credit report. He will have to start from scratch.
2007-02-07 07:51:00 · answer #6 · answered by Anonymous · 0⤊ 0⤋