When you have bad credit it can remain on your credit report for a certain period of time even though the statue of limitations is passed. The amount of time will depend on the type of bad credit.
Significance
Most bad credit will remain on your credit file for seven years. The statue of limitations has nothing to do with how long information remains on your credit file. When the statue of limitations has run out it means a creditor cannot win a judgment against you in court.
Considerations
The statue of limitations can vary from state to state. Typically the time frame is any where from three years to 15 years. The majority of the states fall in the area of five to six years.
Warning
Some creditors will try to bring legal action against you even though the statue of limitations has passed. If you show up for court, and provide proof that the statue has passed, the creditor will not win the case.
Time Frame
Collection accounts will remain on your credit file for seven years. When this time has passed they will drop from your credit report automatically.
Dispute
If any information remains on your file after seven years you can contact the credit reporting agency that reported the information and dispute it.
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