Credit Report Question?????

Question

I am now 27 years old, I have owed probably about 6 companies a total of mabe 6-8 thousnad dollars since I have been 18-19. I went online and checked my credit report and I saw that all of my old debts are not on there. the only debt is a lawfirm that is suing me for, $2500.00 My dad said "after a certain amount of time they will be written off". What the hell is a write off and what really happened to my $8000.00 in debt??
and can i still file bankruptcy because that is what I really want to do>

Thanks everybody and have a safe holidy season!

Answer 1

Like the other posters said, the reporting period is 7 years and the accounts dropped off because of age.

Depending on what state you live in and type of debt, it is possible that you are past the collecting SOL (unless the debts are student loans, taxes, etc. - no SOL on those types)
If you are past the collecting SOL, you have a legal right to inform the collectors that the account is no longer legally collectible.

As for the one debt for $2500 that is reporting, unless it is a newer debt then the others and still within the 7 year reporting period, then it sounds like they already sued you and won and it is actually the judgment that is reporting.

If you were served and failed to answer, then they got an automatic judgment. The collecting period for judgments varies by state so depending on which state, it can be 5 years up to 12 years. In some states judgments cannot be renewed, in other states it can be renewed only once or it can be renewed until it is paid.

If you were never served then you "may" be able to have the judgment vacated. But that would depend on a few factors - what the service papers state (if you were sewer served, etc) and how old the judgment is (generally one year or less).

As for bankruptcy, it would cost you almost as much to file as it would to pay the judgment amount.
If you are past the collecting SOL for the other debts then you are protected by your states SOL statutes BUT it is up to "you" to utilize your SOL statute rights.
(if you are past SOL on the other debts, there is really no sense in filing BK for debts your state has already deemed time barred)

But, if you were to file BK for the judgment, it would be wise to include the rest of the debts even though they are time barred. (there are some types of debts that cannot be included in BK)

You might click on my profile and click on the last link I have listed to a "free" credit discussion board. Do some reading in the newbie forum then in the bankruptcy and credit forums.
"All" info on that site is free to read and to use.

Answer 2

Credit reports are only supposed to show the last seven (7) years of negative history. The removal of the debt from your credit report does not affect whether you owe the money.

You may be able to file bankruptcy, but it would be incredibly stupid, as it would destroy your credit rating for the next 7-10 years and it would be much, much less expensive to just pay the law firm the $2500.00 and be done with it. Since the other debt is too old to be on your credit report and may also be too old for anyone to sue (depending on the statute of limitations and other factors), you do not have to worry about it.

Answer 3

The original creditor is required to write off bad debt after 6 months of non-payment. They then typically send the account to a collection agency to try and recoup those funds. However, negative information falls off of your Credit Report after 7 years, so that is probably why you don't see those accounts.

You will want to make sure that you check all three credit bureau reports. Also, I would recommend against filing for bankruptcy. This will affect so many other things, and there are laws in effect to make it harder. I say you try to settle with the company, maybe for like 60% of the money owed.

Answer 4

After 7 years of no activity on any accounts they have to be taken off of your credit file, BUT the companies can still sue you for payment. Write-offs are worse than being late. Bankruptcy laws change from state to state so your best bet is to find a NON-PROFIT credit management place and talk to them about your state's laws. If you really only have 2500 in active debt, it will be better to pay that, then file bankruptcy, probably. only a lawyer or a financial counselor can tell you for sure. Good Luck!

Answer 5

Just because a debt is or is not on your credit report doesn't mean you don't owe it. A credit report is a commercial product - a data base, nothing more or less.