The seven-year mark does not erase the actual debt, particularly if it’s unpaid.
You still owe your creditor even when the debt is no longer listed on your credit report.
Creditors, lenders, and debt collectors can still use the proper legal channels to collect the debt from you.
How long can a debt collector legally pursue old debt?
Debt collectors are not currently obligated to advise you that they cannot sue you or legally ding your credit report if you refuse to pay stale debt.” In most states, the statute of limitations runs four to six years from the date you last made a payment. And that’s the catch.
Can a debt collector collect after 10 years?
That’s because debt collectors have a limited number of years — known as the statute of limitations — to sue you to collect. After that, your unpaid debts are considered “time-barred.” According to the law, a debt collector cannot sue you for not paying a debt that’s time-barred.
Can a collection agency sue you after 7 years?
If you have old, unpaid debts, you might be safe from a lawsuit to collect the debt. A creditor or debt collector has a limited number of years to sue you for an unpaid debt. The time period, called the statute of limitations, is set by state law.
Do I have to pay a collection agency after 7 years?
You will not have to pay them at all. As for the credit report, while it is true that it can be reported on your credit for seven years plus 31 days, (not 7 1/2 years as reported here) once you sue the debt collector under the FDCPA you can usually negotiate it away from your credit report.