What happens to your debt after 7 yrs?

my sis-in-law told me that after 7 years your debt is clear and your credit starts over. is this true? i told her its not true that you still have to pay the debt you owe. she says its true so shes not paying her credit cards. i think shes making payment to only one of her many cards. shes in debt like in $7000

What happens to your debt after 7 yrs?

your sister is an idiot. here%26#039;s how it works. things do indeed drop off your credit report after they have been %26quot;inactive%26quot; for 7 years. but here%26#039;s what happen: you have a Capital One card that you don%26#039;t pay, after 6 years of nothing, capital one then sells your debt to a debt collector, that debt collector then adds themself to your credit report which starts your 7 years all over again. tell your sister that when you use credit cards and have no intention of paying the bill--then you are a thief and guilty of fraud (and just being a loser in general). sounds like your smarter than your sister---stick with that!

What happens to your debt after 7 yrs?

Although you do still owe a debt, it can only show on your credit reports for 7 years after it becomes delinquent. It however cannot be rereported to the credit bureaus after that 7 years by any other agency.

What happens to your debt after 7 yrs?

Well, actually you%26#039;re both right. Under the Fair Credit Reporting Act(FCRA) debts are allowed to be reported a maximum of 7闄?years from the date of first missed payment. Also, there is a seperate statute of limitations(SOL) that varies by state which allows a specific timeframe for debts to be legally enforced. However, even after the SOL and the FCRA limit would be up, morally they would still be obligated to the debt.

What happens to your debt after 7 yrs?

Nothing happens to the debt, it%26#039;s the credit report that doesn%26#039;t go any further back then 7 years. Basically, the databases that search your records of credit can go back seven years from today%26#039;s date. Debt is something totally separate.

Debt is what you owe, credit reports are the databases that keep your records.

Avoiding payments can unfortunately result in her getting into very serious legal issues.

What happens to your debt after 7 yrs?

s and de, cap, and Shana B are all incorrect...especially s and de.

Under the FCRA act (like smooth stated) items can only be listed on your credit report 7 years from the date of delinquency. This date cannot be changed under ANY circumstances and if you catch someone doing it, you have an easy $1000 lawsuit against them. The 7 years has nothing to do with how long they can sue you though.

Now as smooth also mentioned, each state has a statue of limitations that is the legal timeframe for creditors to sue you for the debt. This ranges from 3 to 10 years from the date of last activity such as a charge or payment (again, the account being passed around to different collection agencies does not count as activity on the account).

If a creditor does not bring a lawsuit before the SoL is up, you no longer have a legal obligation to repay the debt. The collection agencies can still hound you, but at this point they are all bark and no bite. A simple cease and desist letter will put a stop to their harassment.

Follow that link that smooth posted, it has lots of great information.

What happens to your debt after 7 yrs?

Under your condition,I advise here for you to have a visit.http://debt-consolidation.featured-resou...

What happens to your debt after 7 yrs?

you still owe it and they will eventually bring suit against her.

What happens to your debt after 7 yrs?

LOL she is way off... debt follows you forever!!!!!

She is thinking of how when people declare bankruptcy, where some of their debts are legally cleared, after 7 years the bankruptcy (not your debt) goes off your credit.

So she would need to declare bankruptcy first, but I don%26#039;t think she should do that. She should just stop buying things and make at least the minimum payment on all her cards or she will be SCREWED.