I had a credit card back in the 90's. I closed it in 2001 with a balance of $5000 when I got laid off. I tried to keep up the payments but couldn't and stopped paying. It is now on my credit report that I owe $17k. They wrote this amount off in 2006. The date of my last activity was 12/2002. How long will this stay on my report? Also, why is it also included with my debt to income ratio if I am not paying on it and the statute of limitations has expired. Does anyone know?
2007-07-30 10:37:54 · 8 answers · asked by Blitz 3 in Business & Finance ➔ Credit
Guess they added allot of penalties monthly for being late and overlimit. Sorry the statute of limitations did not expire, earliest it can come off it 12/09, just wondering why they waited till 2006 to close it which would possibly cause it to remain on your report till 2013.
2007-07-30 10:48:07 · answer #1 · answered by Pengy 7 · 0⤊ 0⤋
For $17K...wait two years and pay nothing. It will drop off your credit in 12/2009. Account "drop offs" are done by date of last activity, not charge-off dates.
DO NOT dispute it or contact the creditor...you could "restart" the date of last activity.
EVERY STATE has a statute of limitations for collecting a debt. The entire civil court system, is run by when these limitations are....otherwise people would just randomly file lawsuits regardless of how much time had passed, 10 years, 30 years, 40 years.
It is included in your debt to income ratio because it is an unfulfilled debt obligation...charging it off does not negate the fact that you owe it.
PS: Any contact with the credit can restart your date...regardless of what anyone tells you. It is a MYTH that it's associated with a payment only, and anyone who dares to try will find out the hard way....$17K would be an expensive lesson.
2007-07-30 19:05:07 · answer #2 · answered by Expert8675309 7 · 0⤊ 0⤋
It will be on your credit for 7 years, but unless you have the money to pay it off in full, I would not contact the company or even admit to the debt, because if you contact them, you make the debt fresh again, which will change your date of activity and hence the statue of limitation date. If you do negotiate to pay the debt off make sure you get a letter of removal faxed to you before a payment is made. A good resource to use before you make any decisions is the book "7 steps to a 720 score".
2007-07-30 17:58:46 · answer #3 · answered by sidnak2001 2 · 1⤊ 1⤋
The statute of limitations hasn't expired. I have a paralegal degree, and while I'm not an expert, I've never seen that such a law exists, despite many people believing it does. It will stay on your report for 7 years from last activity. The 2006 charge-off started the clock again.
2007-07-30 17:50:02 · answer #4 · answered by Anonymous · 0⤊ 2⤋
You have to be careful as those things vary by state. The statute of limitations is determined by your state. Also, the statute begins when you last had activity on your account, but can also have started when a collection agency called you about the issue etc, or if you had any contact with a collection agency about it.
2007-07-30 17:48:26 · answer #5 · answered by S 2 · 0⤊ 0⤋
The credit card company has entered a judgement against you for the unpaid balance plus interest. It will remain on your record until the judgement is satisfied. In other words, until you either pay it off or negotiate your way out of it.
Your area may have a free debt counseling service. If so, contact them. Try getting in touch with the card company and see if there's some way to reduce or eliminate the charges. If you don't have any luck with either of those, you may have to call an attorney for help.
2007-07-30 17:45:32 · answer #6 · answered by Cheryl G 7 · 0⤊ 2⤋
my understanding is any unpaid debt that sits untouched for 7years will be wrote off (to say) except for the Internal Revenue, Child Support, V.A loan , or any kind of student loan ...those are the ones that never go away ...you should check with a lawyer/PA <<<
2007-07-30 17:54:26
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answer #7
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answered by jean v 2
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FIRST..your debt does not start over in time just because you contacted the Original debtor it only starts over once you make a payment and that is the only time..you time starts ticking when you miss your first payment if you stopped paying in 2001 then that's your start date.
If I were you I would go to www.fixmyuglycredit.com they have tons of helpful info in easy to understand lingo.They are 100 percent free they helped me understand my rights.
2007-07-30 18:50:58 · answer #8 · answered by Anonymous · 0⤊ 1⤋