confused...when does bad debt drop off

[confused2004]

What is the name of your state? Wyoming

When does a bad debt drop off a credit report? Is it 7 years after the debt has been charged off? If it is turned over to a collection agency and you made a payment toward the debt is it then re-aged? Is it then 7 years after last activity?

Thanks for your help.

 

[Ladynred]

A derogatory tradeline can only be reported for 7 years PLUS 180 days starting with the first delinquency that preceeded charge-off. Making a payment to a collection agency does NOT re-age the charge-off, it can't. The changes to the FCRA passed in 1996 and went into effect in 1997 were to establish a 'date certain' a fixed point in time from which the reporting period is calculated. If the account goes delinquent, is never again BROUGHT CURRENT, then charged-off, the reporting period starts the first time you went 30 days late.

Collections can NOT survive the delinquency of the ORIGINAL DEBT because they are not allowed to changed that 'date certain' - its illegal re-aging if they try it.

 

[JETX]

I believe that if a debt is reaffirmed by the debtor (depending on state... could be just a payment... or could be payment plus written affirmation), the debt is 'refreshed' and a new SOL and CRA reporting period is set.

 

[0UTSIDER]

I know that in Michigan, it is from the date of the last activity. We paid off some medical bills that went to collection after I was injured, 2 years ago when we bought our house. They were about to pass the 7 year point, but now they are back on my credit report for 7 more years. They show as being paid, but they are still there.

 

[Ladynred]

If a debt has already aged-off, they can NOT legally 'put it back on' !