What happens to a debt after it is erased from you credit report?

I was once a typical and stupid college freshman who was taken in by the credit card companies that were advertising all over campus. It got to a point where I had seven different credit cards that were all maxed out. I was able to eventually take care of some of them, but others I had either lost track of or just could not afford to pay at the time. Two of these past credit card debts are now over seven years old and are no longer on my credit report, but they have just recently sent me a collection notice. I cannot afford to pay these now, I just finished major repairs on a car that we ended up trading in and my mom cosigned a loan for a new car that I desperately needed. PLEASE HELP! Thank you so much.

What happens to a debt after it is erased from you credit report?
The debt NEVER goes away until you pay it. But you do have certain rights under the FCRA(Fair Credit Reporting Act). You are probably being contacted by a Collection Agency who hopes you don't know any of your rights and pays them the money.





Since you are past the 7 years it can no longer appear on your credit report. You are also past the Statute of Limitations, so they can no longer take any legal actions to get you to pay.





You should send them a letter stating that it is past the Statute of Limitations and they are no longer to contact you again. You should also pull your credit report. If it appears on there you must send a dispute to the Credit Reporting Company stating that it needs to be removed.
Reply:Since it has been over 7 years from when you defaulted, they cannot re-age the account and place it on your credit reports. If they do, you have a legal right to sue them for up to $1000.





The reporting period starts 7 years from the first time you became 30 days late and never brought the account current leading to the charge off.





The collecting SOL for your state can start on the same date as the reporting period starts OR it can start from the last payment or charge you made to the account "before" the charge off.





You need to find the collecting SOL for your state.





Just because you may be past the collecting SOL does not mean that they cannot continue to collect or even try to sue (though filing on a time barred debt is illegal)





It is up to you to inform them that the account is past the collecting SOL, or if they should sue, to use an affirmative defense of SOL in your answer.





If you are past the collecting SOL for your state, it would be in your best interest to send them a SOL letter. (and to do that before it escalates into a suit)





If you are still within the collecting SOL you should think about sending a debt validation letter. Make them prove that they haven't illegally inflated the amount of the debt, that they are licensed and/or bonded in your state if your state requires it, that they even have a legal right to collect on that debt.





You might click on my profile and do some reading in the links I have listed to the FDCPA, FCRA, and especially in the last link listed. (you can find sample letter templates and other info in the last link)
Reply:Actually, the debt does go away after a certain amount of years depending on your states statutes of limitations.





After that period, unless the have filed judgement, they can no longer collect on the debt or report it on your credit reports.
Reply:I think you are asking what happens if you don't pay the ones that have returned.





Two of these past credit card debts are now over seven years old and are no longer on my credit report, but they have just recently sent me a collection notice. I cannot afford to pay these now,





They will show up at once on your credit report. The background that they were sold to collection agencies may also show up.





Sorry for the bad news.
Reply:You still owe the debt...
Reply:Check -


http://articles.moneycentral.msn.com/Sav...
Reply:What has happened is the bank has sold your bad debt to a collection company for pennies on the dollar. What ever the collection company can squeeze from you above what they paid for the debt will be profit. Often they pay 10 cents on the dollar or less.





There is also a chance that these debts could reappear on your credit report especially if there is any new activity. You can try to negotiate with them and pay a small percentage to make them go away but that is no guarantee that they won't show up on your CR.





Or you can just tell them you have no way to repay and for them not to bother you again. Legally they are not suppose to but they probably will. Sorry there is no easy answer for this one.
Reply:I'm assuming you checked you credit report and made sure they are not on there? If you did, then check your state's laws on whether or not you need to pay that back. There is a statute of limitations (differs in each state) where credit collectors can not ask you for payment anymore. Please check the statute of limitations in your state before you have any discussions with the collectors. IF it turns out you are still llegally required to pay them back, then you can negotiate a amount and may be able to work out an installment plan. But check your state's laws on credit first.








Some more good sites:


http://www.ftc.gov/credit


http://www.suzeorman.com/igsbase/igstemp...


https://www.annualcreditreport.com/cra/i...


http://www.myfico.com/