Let's say that someone owe's a lot of money to credit card companies and decides to stop making any payments on the debts for 7 years.

After 7 years is the debt forgiven, the credit report wiped clean of the debt, some combination of these two, or none of the above?

It would depend on what state you live, the statute of limitation varies from state to state.

Link here:
http://www.fair-debt-collection.com/SOL-by-State.html#7

Quote:

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Originally Posted by mr.yet

It would depend on what state you live, the statute of limitation varies from state to state.

Link here:
http://www.fair-debt-collection.com/SOL-by-State.html#7

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Thanks, I'm in Michigan.

I'm assuming the 6 year breach of contract would apply to my question. Is the 10 year SOL for judgments that would be brought against me for non-payment?

Michigan Statutes of Limitation

Breach of Contract: 6 years, (MCL 600.5807(8).

Breach of Contract for Sale of goods under the UCC: 4 years: including deficiency actions following repossession and sale of goods subject to a security interest, (MCL 440.2725(1).

Judgments: 10 years, but are renewable by action for another 10 years, MCL.600.5809(3).

NOTE: Another state's limitation period may apply check statutes carefully.

Yes anytime within the 6 year year period, lets say on year 5, they can sue for a judement, and then get 10 years ( assuming your time frame was correct) then at the end of the judgement period, if they still haven ot gotten their money, they can go back to renew the judgement.

If they get a judgement, they can attach your bank accounts and garnish your wages, just read some of the posts on here and you will see how often that is done.

Next if they don't go and get a judgement, the debt is not forgiven in 6 years they can not go to court and try to inforce it, the debt remains owed, and they can try and collect forever, but just can't take you to court after the SOL

Quote:

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Originally Posted by Fr_Chuck

Yes anytime within the 6 year year period, lets say on year 5, they can sue for a judement, and then get 10 years ( assuming your time frame was correct) then at the end of the judgement period, if they still haven ot gotten thier money, they can go back to renew the judgement.

If they get a judgement, they can attach your bank accounts and garnish your wages, just read some of the posts on here and you will see how often that is done.

Next if they don't go and get a judgement, the debt is not forgiven in 6 years they can not go to court and try to inforce it, the debt remains owed, and they can try and collect forever, but just can't take you to court after the SOL

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Thanks for the help.

I suppose I'm like every other schmuck hoping for that magic pill to make everything better.

There's no financial reason that the debt can't be repaid, to be honest I was just hoping to weasel out of it. After all, I'm not the one charging usury.

I appreciate the help, now it's time to sell the house and get down to business.

I'm glad I found this site, I'll have to stick around these forums. There must be an economics section, I'm the owner of PeakEconomy.com, just a hobby.

My debt is 10 years old they trying to contact me by a letter is this still valid are they goint to put this debt on my credit report is it goint to affect me in some way and what shoul I do>debt is about 1400$ from verizon pla let meknow.

Not true. Credit bureaus keep information on file for more than 7years.

Hi,

I have a question in terms of private school loans. I owe $6,000 for the private loans and $19,000 for federal school loans. I'm currently paying the federal school loans portion since I know there is no way getting out of that. My question is if I can get out of paying the $6,000 amount. I live in California and I heard that after 7 years this debit is "wiped out". If this true? Are private school loans categorical with say private credit card debt? Thanks, I really appreciate any feedback.