2 People Helped
Member Since: February 2012
Bankruptcies can stay on your report for up to 10 years but other accounts should drop off after 7 from the date the creditor sent you to collection or you defaulted on a loan. Timely payments will reflect up to 7 years. Contact all 3 agencies and tell them the time frame for reporting a debt has expired and ask them to remove the account. Most will automatically drop after 7 years but if you are not pro-active in insuring it be removed...some accounts may show indeifinitely. The law states debts must be forgiven after 7 years and that means that unless attempted collection has been made through a court of law within the statute of limitations for your state pertaining to a particular debt, the debt must be removed from your credit report. Stay on top of it!
cattleprodf13's reply was:
Enter Your ReplyThis is absolutely not accurate. The debt does not start all over again once you talk to a debt collector. Only when a debtor re-affirms a debt and makes a payment arrangement or a payment does the time cycle start over. Be very careful if you decide to file either Chapter 13 or 7 bankruptcy because some creditors will ask you to reaffirm a debt (such a car loan) and then you are stuck. Your bankruptcy attorney can generally negotiate a better interest rate for you even though you've signed a contract.....but only if you are not upside down on your loan to value on the vehicle. Bankruptcies stay on your report 7 to 10 years and in most instances 10. Judgements can remain indefinitely so if you've had one or more defaults and you cannot pay those debts....consider bankruptcy. In some cases you can keep your home and car and if you are over 60 years of age you will be allowed a homestead exemption. You don't lose everything in a bankruptcy contrary to what others may tell you. Carefully consider your options and get a free consultation with an attorney. That's a starting point. While rebuilding credit after a bankruptcy doesn't happen overnight....it does give you a clean slate to start from. You generally can get a credit card soon after but use it very wisely and pay and you go. It should be a rebuidling tool only. Some states allow you to buy a car before your bankruptcy is even discharged....some with no money down and from reputable dealers but you need to have verifiable and steady income. I believe it's easier to rebuild credit with bankruptcy than it is trying to heal old wounds. And...the phone calls stop as soon as you 'file'. Set up a file for your bankruptcy papers and the final discharge. Some businesses will want to see the discharge letter although the bankruptcy and discharge are public record. Government loans and government debt (including parking tickets) cannot be discharged so get those paid off as soon as possible.
P.S. One thing to watch for is when a debt has been sold from one collector to another. One debt may show up as multiple debts on your credit report but if the original debt was reported 7 years prior it is your responsibility to contact the 3 credit reporting agencies and let them know the debt should have fallen off your report (that is if you've never reaffirmed the debt within 7 years).