How long does bad credit follow you?Can and old bad debt resurface?

Question

I was told bad debt may linger or re-surface when debt is sold to a collection agency

Answer 1

Bad debts are reported to the credit bureaus for 7 years after last delinquency. It does not matter how many times the debt is sold or re-sold, it will drop off after 7 years.
Unscrupulous debt collectors may try to collect on the debt indefinitely banking on your ignorance of the law. After the Statute of Limitation (SOL) has run out, you no longer have a legal obligation to pay. For your State's SOL, check the link below.
http://www.cardreport.com/laws/statute-of-limitations.html

Answer 2

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RE How long does bad credit follow you?Can and old bad debt resurface?

I was told bad debt may linger or re-surface when debt is sold to a collection agency

Answer 3

The creditor can and often does attempt to collect the debt, unless the Statute Of Limitations has expired on the debt, long after it has been charged off with either an in-house collection program or more commonly with a third-party debt collection service. Because the original contract for the debt, in your case a credit card agreement, was not honored, the account balance can be requested paid in full. A creditor will sometimes accept a partial payment of the debt and the account will be reported as "settled charge-off".

The charge-off will remain on your credit report for seven years plus 180 days from the date of the first nonpayment under the Fair Credit Reporting Act.

Answer 4

While the bad debt will fall off your credit report after 7 years, the actual debt can be sold to one collection company after another. They can continue to try and collect the outstanding debt. even if it is outside the statue of limitations.

The statue of limitations is an affirmative defense if they take you to court. If they sue you and you don't show up in court, they get a default judgment.

Answer 5

What's your Source (Optional)

Answer 6

When it is reported to collections it is on your record for 7-10 years...bad bad thing to have...try to avoid it at any cost if you ever want to own a house, car, boat..ect. Ive been there and it sucks. GOOD LUCK!

Answer 7

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debt consolidation loans:
http://all-debt-consolidation-loan.blogspot.com/2007/07/debt-consolidation.html
credit cards:
http://all-debt-consolidation-loan.blogspot.com/2007/07/chase-credit-cards.html
Good Luck!

Answer 8

it sticks with you for about 10 years. if your credit should improve i.e. getting a loan for a car, and having it paid for, this will also show up on your credit report and can sometimes outweigh the bad credit.

Answer 9

if you don't discharge it thru bankruptcy, it can continue to be sold by collection agencies and it will show up as new debt over and over

Answer 10

Depending on what it is; 7-12 years...

And yes, anything within that time can come 'back to haunt you'.