What Happens To Delinquent Debt After 7 Years?

Question

If you've avoided all contact with the collection agency...does it completely come off of your credit report? Once it does, what is your credit score like?

What is the lowest possible credit score?

Does it help your credit if you were to contact these past creditors to pay them?

What should someone do after the 7 years? Pay back old debt? Or start trying to build up credit as though starting new?

Thanks..

Can someone tell me what happens to your credit once the deliquent accounts fall off your report? And what's the lowest possible credit score a person can have? I'm trying to brace myself before I read mine.

So if my slate gets wiped clean after 7 years..I stay away from these creditors....
I have the lowest possible credit score of 400....

Okay..that's fine..

How would I start building my credit? How can I get anyone to lend me money so I can do that? How long would it take for me to get my credit back to a decent number?

Answer 1

Now for the correct answer.

Derogatory account fall off your credit report after 7-years from the date of first delinquency period.

Once the S.O.L. has passed creditors can still sue you but all you have to do is show the court that the S.O.L. has expired and the case will be dismissed.

FICO reports from 300 to 850.

Anyone who's score calculates to below 300 defaults to 0.

Do not contact your creditors after 7-years. Do not attempt to pay them back or even say that you might, this can result in the S.O.L. being restarted.

Start new with credit cards being careful not to exceed 30% of your credit limit in any given month and pay in full before the due date.

This will do two things, first it will establish a payment history and second it will keep your debt to credit ratio very low. These two things alone make up 65% of your credit score.

I have posted a link so yu can look up the S.O.L. for your State.


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

Answer 2

if you have managed to duck creditors for 7 years, and have not established any new credit, and have had no verbal contact with the creditors, then you credit profile will be blank, you will be a "ghost" and it's the worse score you can imagine, as no credit is worse than poor credit

but

it's easy to get re established

do not pay back the creditors
as this will only re aged your debt for another 7 years
moral obligation or not the original debt was written off in the 1st year and then sent / sold to a collection agency, if you pay the collection agency they do not necessarily foward the money to the orginal creditor

Answer 3

Don't confuse the 7-year reporting period (federal law) with the statute of limitations on how long you are legally obligated to pay a delinquent bill (state law). A delinquent account can only be reported for 7 years from last delinquency unless you start making payments. Then the reporting period starts all over again. The statute of limitation on how long a creditor can legally collect a debt varies from state to state. It could be as little as 3 years in some states depending on the type of debt. After the statute of limitation has expired, you no longer have a legal obligation to pay. A collection agency can still attempt to collect banking on your ignorance of the law. If the statute of limitation in your state has expired on this debt, it is your responsibility to inform the collection agency of that fact. Send them a certified letter stating that you are aware of your rights as a consumer and that you no longer have a legal obligation to pay. The collection agency can still sue. Use the statute of limitation as an affirmative defense. The lawsuit should be dropped. Good luck

Answer 4

I totally agree w/ Spifiman1...

and Re: Low Credit Scores...
A few years ago when I used to work in motorcycle sales, a guy came in and his credit score was 335. Nobody had ever seen anything lower than a 420 or so before, so he must have been trying really hard for a record!
Needless to say, it was pretty amusing when the guy acted like he didn't have any financial problems...

Answer 5

Negatives fall off your credit report in 7 years but that doesn't mean collectors won't still come after you. They might even take you to court.

Although the statute of limitations (SOL) in most states is less than 7 years (a few are longer), a collector could win in court if you fail to show up.

The moral thing to do is pay your debts. That's why you should settle old debts. You could probably settle something that old for about 25%. If you do try to settle, get the agreement in writing before you pay and do not give them access to your bank account.

Answer 6

After 7 years collection accounts get deleted from your credit report.I have a friend who just went through that--3 outstanding hospital bills dated from Nov.2000 just got erased from the credit report,even called TransUnion to verify.You can call any of the 3 major credit bureaus and they will give you information over the phone.Good luck...hope you fix your issues!

Answer 7

usually if they are 7 yrs old they suppose to come off cause they would fall under statue of limitations ...but what theyll do its maybe transferred ot sell the note to a collection company and it will take another 7 yrs that of last day of activity... i guess the 1st thing to do is pull your credit report from all bureau and try to dispute them check for any mistakes.... duplicate accts... as far scores all bureaus have different scoring ranges between maybe 400 - 830....if you plan to call to call creditor to pay ask for a settlements but 1st pull and check your reports....

Answer 8

Use a credit repair company like the one I used. They consulted with me and helped me repair my score from a 580 to 700 in a year. It may take longer for you, depending on how bad it is and how quickly they can get resolved and removed.

Check them out at http://www.idealhelpnow.com