Quote:
Originally Posted by TomThomas
(10) I believe most debts become un-collectible after 3 years, due to the statute of limitations. That is, they will be unable to get a court to issue a judgment against you after 3 years (from the date you took the loan, I guess, or perhaps from the date you made the last payment). But they can still send you threatening letters forever claiming you must repay the money. And they can still sue you, even after 10 years or more, but if you show up in court (as you should), you can just prove to the court that 3 years has passed, and the court will dismiss the suit. But if you never pay the debt, the "ding" on your credit report will last more than 3 years. I don't know the exact number of years.
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In the U.S. every state has its own statue of limitations. In Texas for example, it's 4 years. Some are even longer.
Once the statute of limitations has passed, then TomThomas is correct. If you are sued & go to court over a debt, then
as long as you are able to prove that you are past the statue of limitations, the case will be dismissed. So keep your paperwork.
Generally speaking, bad credit marks stay on your credit for 7 years. Collections stay about 7.5, & bankruptcies can stay on either 7 or 10 years, depending on which kind it is. A judgment (when you are sued & the other person wins) can stay on your credit 10 years or more, because some states allow judgments to be renewed, meaning a new period of x years for this to continue being on your credit.
I hope this information helps someone.