Expert: Chris Ebert - 6/6/2009

Question
Is there a time limit once a credit card is charged off, then to have them contact me again to pay. My card charged off in dec 2005 (at that time I had only a part-time job). I received a notice that it was being set up for collection this month.

Answer
There are a couple of answers to this question.

1) The state statute of limitations of a debt contract defines how long the creditor has to sue you. In Texas, it is 4 years.

2) A creditor can only post a debt on your credit report for 7 years from the date of last payment. Some debt collectors try to put that date as the date they acquired the debt which is wrong.

3) Debt collectors can call you or write you forever on a debt. They can not post it on the credit report after 7 years from the date of last payment.