Elite Credit Scores
Each and every negative item has a reportable statute of limitations. That means the credit bureaus can legally report it for some period of time before it must be removed. Letand#226;and#128;and#153;s dive inand#226;and#128;and#166;
Bankruptcy
This one has possibly the most confusing statute of limitations so letand#226;and#128;and#153;s get it out of the way first. Chapter 7 bankruptcies can remain on your credit files for ten years from the date filed. Chapter 13 bankruptcies can remain on file for seven years FROM THE DISCHARGE DATE. This is important because most people believe 13s have to be removed seven years from the filing date, which is incorrect. It normally takes three to five years for a Chapter 13 to discharge due to the repayment process. Thatand#226;and#128;and#153;s when the 7 years begins. The cap on all bankruptcies is ten years so most 13s remain on file for a full ten years, just like Chapter 7s.
Tax Liens
This one has the longest statute of limitations and must be broken down into three categories; released, unpaid, withdrawn.
Released Tax Liens and#226;and#128;and#147; Released liens can remain on file for seven years from the date released. This included liens that have been settled for less than you really owe.
Unpaid Tax Liens and#226;and#128;and#147; Sit down. Unpaid tax liens can remain on your credit file indefinitely. Thatand#226;and#128;and#153;s the bad news. Now the good newsand#226;and#128;and#166;
Paid and Withdrawn Tax Liens and#226;and#128;and#147; Paid tax liens normally stay on file for seven years, but the IRS announced that they will withdraw the lien if paid in full AND the taxpayer requests a withdrawal. The credit bureaus do not report withdrawn tax liens so they will come off your files almost immediately if you get them withdrawn.
Defaulted Government Guaranteed Student Loans
The amount of time is actually governed by the Higher Education Act instead of the FCRA. Defaulted student loans can remain on your credit reports for 7 years from the date they are paid, 7 years from the date they were first reported or 7 years from the date the loan re-defaults. The point you should take away from thisand#226;and#128;and#166;pay your student loans!
The Seven Year Club
Delinquent Child Support Obligations
Judgments and#226;and#128;and#147; Seven years from the filing date whether satisfied or not.
Collections and#226;and#128;and#147; Seven years from date of default with the ORIGINAL creditor, not seven years from when the collection agency buys or is consigned the debt.
Charge Offs and#226;and#128;and#147; Seven years from the date of the original terminal delinquency.
Settlements and#226;and#128;and#147; Seven years from the date of the original terminal delinquency
Repossessions and Foreclosures and#226;and#128;and#147; Seven years from the date of the original terminal delinquency.
Late Payments and#226;and#128;and#147; Seven years from the date of occurrence.
Youand#226;and#128;and#153;ll notice and#226;and#128;and#156;terminal delinquencyand#226;and#128;and#157; several times above. The seven year period actually begins 180 days AFTER the original delinquency that leads to a collection, charge off or similarly negative action. So, technically these items remain on your credit file for 7.5 years from the date of the last delinquency before the terminal delinquency.
Re-aging
If youand#226;and#128;and#153;ve never heard of this term letand#226;and#128;and#153;s hope you never do. Re-aging is the illegal process of changing the and#226;and#128;and#156;purge from dateand#226;and#128;and#157; so the credit reporting extends past the allowable period of time. This is not common but when itand#226;and#128;and#153;s done, itand#226;and#128;and#153;s usually a collection agency or debt buyer who is breaking the law. Itand#226;and#128;and#153;s a clear violation of the Fair Debt Collection Practices Act and the Fair Credit Reporting Act but the debtor has to know it has happened. Add a Comment Back to All Articles
