Saturday, May 13, 2006

Seven



After seven years all debts are cancelled, right?

3 Comments:

Blogger Rebel Leady Boy said...

After 7 years, debts are generally not calculated into your credit report, unless the creditor goes out of their way to put it back on there. You still technically owe the debt and they can continue collection activity, but it does not appear on your credit report.

Specific collection activity is regulated on a state by state basis. California has a pretty low statute of limitations for debt collection (4 years), some states are 6 to 8 years.

The 4 years (in California) is calculated as the time since your last payment. And this is where you should be careful because sometimes someone will send a token payment to show they plan to pay back the rest of their debt, but that RESTARTS the statute of limitations, meaning the creditors can now pursue legal action.

If a creditor successfully sues you in a court of law, they can garnish your wages.

I know all this because I've got a ton of old debt, but fortunately was living as a transient from 2000 - 2002 and nobody could find me. Now the statute of limitations is past (in California).

You did mean financial debts, didn't you?

8:34 PM  
Blogger AEP said...

The only garnish I want on my wages is radish roses.

5:52 PM  
Blogger frlmnk said...

That's good to hear about Calif. Santa Cruz Co. Towed my car back in '03 or 4. Never paid for it. It got totalled. I lucked out not getting t-boned.

2:33 PM  

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