How soon after an account has gone into collections were you issued a judgement?

Question

I have an account on my cred. report. Last date of activity was October 2002. It is listed under the collections area of my report - and it is listed as a 'current delinquency'. I get a phone call from the creditor about twice a year, and a letter once a year. This all happened after a bout of unemployment.

I was told that my creditor can keep it on my report indefinitely. Then someone else told me that it must 'fall-off' 7 years after the LDoA.

Whose right? My question also is: what is the average time a collections agency will use to take you to court for amounts owed in the hopes of getting a judgement against you (it has been at the same agency for almost 1 year and a half)? Monies owed total is almost $7k, through research I have found that this particular company pay about 8-10 cents on the dollar...(if that makes a difference).

I would rather give my money to a charity...but that won't help my credit score. Will paying off this debt help?

Answer 1

I'm not exactly sure of the time frame, but 7 years is usually correct on any debt, 10 for bankruptcy. You should contact the creditor and try to agree on a smaller payoff amount, especially if you are now gainfully employed and can pay. You really want the credit report to read "paid as agreed" as soon as possible. I've been there; good luck!

Answer 2

Negatives fall off your credit report 7 years and 180 days after the DOLA which is the last delinquency/charge off date. Collection agencies CAN NOT re-age the debt.

The collector can follow you to the grave trying to collect the debt. Some collectors are more apt to take you to court than others. More are going to court over smaller sums.

The statute of limitations (SOL) varies from state to state. While credit cards are defined as open accounts, some collectors have been successful in convincing judges that they are written accounts which typically have a longer SOL.

In any case, SOL is an affirmative defense should the collector take you to court. Doesn't mean they can't still call and try to collect.

Answer 3

Ignore Bluestravel. If your debt is past your state's Statute of Limitation, you have no legal obligation to pay.There are unscrupulous collectors who might try to sue after SOL hoping for a default judgment. If this happens to you, you must answer the summons. Use Sol as an affirmative defense. The lawsuit should be dropped.

Derogatory trade lines will drop off your credit reports seven years after last delinquency. It does not matter wh oowns the debt or how many times it has been sold.

Do not confuse credit reporting with the SOL. They are two separate things.

Answer 4

The collection agency can keep on indefinatly. As long as they have activity that they are still working and trying to collect debt. They probaly have on a file that when the time comes close they have someone contact you and that keeps it updated. It does not matter it will stay on your credit report until you have settled with creditor. it is best to try and work out a payment schedule, but from 2002, probably not. Try and settle with them. They want your money and do not want to go to court. All they can get is a judgement against you. But they can also see what assets you have and put a lien against them or your bank accounts. Or just have judgement for 7 to 10 yrs, I can't recall. Once settled though, it will stay on your credit report for 7 yrs, but you can have it say, Claim paid in full. They will send you a claim to file with public records for your file. At least when others see your credit history it will say paid in full and you get a chance to explain situation to next company you try and borrow from. That goes a long way that you settled your debt.
They can take you to court anytime. Surpised they haven't.
Be sure and get your note back from them saying "Paid in Full" if no document to file with the courthouse.
Good luck.

Answer 5

It will drop off your credit 7-years from the date of first deliquency.

More important is the statute of limitations in your State. Credit cards are considered open accounts. I have posted a link where you can look up your State.

If the S.O.L. has passed there is nothing they can do to you legally.

http://www.bcsalliance.com/index.html

Answer 6

Debts do come off after 7 years but they re-report it so you have another 7 years. In other words, it ain't going away.

Odds on them taking you to court are very low and it almost never happens.

What I don't understand is why you feel that you shouldn't have to pay your debts?

Here's the deal, if you pay it off (usually you can make a deal for much less) your score will go up, the creditor will stop hassling you and you can feel good about it.

Then start giving money to charity.

Answer 7

depends on the creditor
check this website out thoroughly and ask for validation
revolving credit has a statue of limitation of 4 years.

www.creditinfocenter.com