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Collections Law/7 year old debt
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Question
Is it true that after 7 years I don't need to pay a debt back.
Thanks,
Sam UK.
Not necessarily. Each state has its own statute of limitations on the collection of debt. I believe what you may be referring to is the reporting of a delinquent debt by the credit bureau. According to federal Fair Credit Reporting laws the credit bureaus may only report a bad debt (or any debt for that matter) for up to 7 years from the date of last activity (DLA) such as the last payment or the last charge on a credit card. After 7 years it must be removed. This does not mean it is not collectible. Your state law (SOL) determines how long it can be collected. If the creditor sues you and obtains a judgment this can be extended almost indefinitely.
To find out the SOL in your state go to
http://www.ihatedebt.com/DealingWithYourCreditors/DealingWithDebtCollectors/Stat...
(copy and paste in browser)
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Answers by Expert:
Michael Brotherton
Expertise
Consumer/Debtor Rights Advocate. Mike Brotherton is a negotiator with over 30 years experience in consumer lending and collections. Mike has 30 years in the credit and collections industry as a former loan officer, debt collector and manager of two finance companies over several years. Mike is well versed in Loss Mitigation practices and the legal collection process. He has helped literally thousands of people over many years overcome serious financial problems such as foreclosure, creditor lawsuits and abuse by debt collectors. For more information about resolving your "financial emergency" visit www.financialemergency.com. FinancialEmergency.com is a consumer web site which actively promotes Fair Debt Collection Practices and other consumer protection laws. We teach DEBTOR RIGHTS and enforcement of those rights. The more informed you are of your rights and the credit collections practices of creditors the more peace you can have dealing with your FINANCIAL EMERGENCY. Most financial problems are fairly common and as such have some very common solutions. The key is understanding your rights in the collection process and how to enforce them if need be. Primary business- Debtor Rights Advocacy and Debt Mitigation relating to foreclosure, creditor lawsuits, and other serious financial problems. www.financialemergency.com (copy and paste in browser).
Experience
Over 40 years combined experience negotiating disputes and resolving financial issues related to consumer debt, corporate issues and mortgage modifications.
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