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shanababy · Jan 14, 2008, 10:22 AM

I may be incorrect, but I was told that if you do not pay a credit card for 7 years without filing for bankruptcy, they can no longer hold it against you on your credit report... (bankruptcy is 10 years)... My question is this--if the credit card company does a "charge off" and sells your debt to another company--does that 7 year gap restart? Or is it 7 years from the origianl credit agency?? I looked into bankruptcy several years ago--and the lawyer told me this information...

JudyKayTee · Jan 14, 2008, 10:57 AM

Originally Posted by shanababy

I may be incorrect, but i was told that if you do not pay a credit card for 7 years without filing for bankruptcy, they can no longer hold it against you on your credit report....(bankruptcy is 10 years).... My question is this--if the credit card company does a "charge off" and sells your debt to another company--does that 7 year gap restart? or is it 7 years from the origianl credit agency???? i looked into bankruptcy several years ago--and the lawyer told me this information....

I've seen unpaid accounts on credit reports for 10 years - don't know if this is the norm but I've seen it.

My understanding is that if you check your credit report it will list the last activity on the account; that is when the Statute begins to run - and it varies from State to State. It's not from the date of the debt; it's from the last activity in the account. Your last payment is the date the statute began to run.

Are you asking if the debt will still appear on your credit report or if the creditor can still attempt to collect?

T

ScottGem · Jan 14, 2008, 11:04 AM

There is a common misconception about what a charge off means. Charging or writing off a debt is simply a tax maneuver. The company takes a loss against their income. It has NO bearing on the debtor's obligation to pay that debt, which never expires. Its true that old debt can be pruged from your report unless its reported by the creditor.

excon · Jan 14, 2008, 11:37 AM

Hello again, shana:

Irrespective of when it's supposed to come off, I'd challenge it NOW. The worst that can happen is that it stays on. The best is that it comes off.

I'd get a copy of my credit reports. All three bureaus don't report the SAME debts, so get ALL three. Accompanying your reports, will be a form you can use to challenge incorrect information. Use that form.

excon