Most debts truly have the "seven-year itch," but some debts can stay on your credit report much longer. Also, when a debt leaves your credit report it does not necessarily mean that you are debt-free. Some debts become noncollectable years before or years after the credit bureaus must stop reporting them. You may need monitor your creditor history for accounts listed in error.
Identification
Debts, such as charge-off accounts and collection accounts, usually leave your credit report after seven years. This means that the debt does not affect your credit rating anymore and lenders will never know that you left it unpaid. A few debts stay longer than seven years. Chapter 7 bankruptcy stays on your report for 10 years and unpaid tax liens can remain indefinitely.
Liability
Credit reporting has nothing to do with liability for a debt. Common debt, such as credit card debt, is collectable for three to six years in most states, but you may owe a debt long after it falls off your credit report. Some states allow creditors to sue you for a debt and renew the judgment indefinitely until you pay it off.
Considerations
Technically, debts can stay up to seven years plus six months, because the credit reporting time limit does not start until you reach "terminal delinquency." This usually means after the creditor writes the debt down as noncollectable or sends it to a collection agency. Businesses usually have six months to collect a debt before calling it noncollectable, thus the reason why debts often stay for seven years and six months, according to Smart Credit.
Tip
Review your credit reports from all three major credit reporting bureaus -- Equifax, Experian and TransUnion -- at least every year. Some companies try to "re-age" debts by reporting a false charge-off or collection date. Alternatively, the credit bureaus may accidentally list a debt for longer than they should. In any case, dispute an item if you feel it has an incorrect age.
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