debt collection - How long does it last?

Question

I was under the impression that once your debt goes to collection, it will stay on your record (credit score, etc.) for 7 years. After that, it will be erased from your credit and you will have "no credit" instead of "bad credit". I know this is what a lawyer friend told me like 5 years ago, but now I'm hearing that they changed this to 10 years on your record, and some even say that it's permanent now. Does anyone know about this?

Answer 1

Derogatory accounts show for 7-years from the date of first delinquency, so it's 7-months and 180 days.

Answer 2

You may be confusing "statute of limitations" with credit records. How long a debt remains a debt will be covered under state (or federal) law. The credit report is just a collection of information. Even if a debt ages its way off your credit report, it may still be possible for the creditor to pursue collection.

Answer 3

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RE:
debt collection - How long does it last?
I was under the impression that once your debt goes to collection, it will stay on your record (credit score, etc.) for 7 years. After that, it will be erased from your credit and you will have "no credit" instead of "bad credit". I know this is what a lawyer friend told me...

Answer 4

There is so much confusion because people mix up the rules for the reporting period with the statute of limitations (SOL) for bringing lawsuit.

The reporting period is governed by the FCRA and is 7 years for delinquent accounts and 10 years for bankruptcy and judgments.

The SOL is governed by state law and varies. Payment restarts the clock.

However, creditors can continue to try and collect old debt even if it is beyond the reporting period and the SOL. Collectors can literally hound you to the grave.

Answer 5

Bankruptcies stay for 10 years. The 7 year rule is still supposed to apply to everything else, but is not always followed, so you should check you credit report after 7 years and dispute whatever should be gone.

Answer 6

It depends on your state. What you could do is obtain a copy of your credit file, dispute every charge. Merchant has 30 days to verify you incurred the debt. If they can't legally the credit reporting agency MUST REMOVE THE CHARGE.
This is the so-called 'dirty secret' to having bad credit removed. These fly by night companies dispute every single charge each month until the credit reporting agencies get tired of them and remove the charge.

Answer 7

I can not understand why YOU are dealing with this at all why isn't CCS. Honestly if they are handling your accounts for you to communicate in any manner with this is going to cause you big problems. Let CCCS take care of this before you screw yourself out of all the good you have done. STAY OFF THE PHONE, it is your enemy and you are just undermining all CCCS can do for you.

Answer 8

I think the 7 years still stands. Your "credit" is a credit report. The info goes into a formula which generates a "credit score", which indicates the finanical health of your situation.