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7 year rule
So who has heard of the so called "7 year rule" for credit card debt?
My friend was just telling me how awesome it is that pretty soon the 7 year rule will kick in and her debt will be cleared. I was like wtf are you talking about? Apparently when she turned 18 she got a credit card, maxed out the ~3k limit... cut it up, threw it away, and never looked back. She ignores debt collectors and whatever... and I guess after you are delinquent for 7 years they can't do a damn thing about it. It goes off your record and everything, you get a clean slate, fresh credit score, etc. WTF is up with this BS? These are the kind of people fucking everyone over, causing the rates to go up! People here were giving me shit for carry a balance. I may have a balance so I'm certainly not helping... but at least I'm working to pay it down, rather than waiting for the debt to "disappear" due to some bullshit law that was seemingly designed to be abused! Again, wtf?! |
I thought this was a myth or something. If not, that is pretty shitty. Why pay anything back then, just go without for 7 years and it goes away. I've been paying the minimum on a card for like 5 years now and its still pretty much maxed out :facepalm: I fail. First chance I get I'm paying that bitch off and closing the account.
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from what i could find in 5 mins on google it has to do with statute of limitations, and the 7 year "timer" starts when you first go delinquent
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How has she avoided being taken to court? Once a collection agency buys her debt, it is usually very agressive and if not resolved usually ends up in court.
In Canada a Bankruptcy will show on your credit report for 7 years. After that there is a process for having it removed. If you file for bankruptcy a second time, the first one will show as well. If you don't go through the process debt doesn't just disappear, it'll stay on your credit report forever. I assume this is similar in the US as well. For the record I have awesome credit and have never had any issues personally. However I have family who've fuck themselves due to bad choices in the past. 15 years later my family member is still being haunted by defaulting on a car loan and other credit abuses. If they'd declared bankruptcy when they knew they were in over their head everything would be a lot better now. Your friend is a fucking tard (hope she's hot, got pics?), she won't get away from her past transgressions unscathed. I can't imagine fucking my credit up over a couple thousand dollars. Even if her credit score did a reboot after 7 years I can't imagine going all that time with that hanging over my head. I sense a lot of regret in her future. |
That particular event might get expunged but the ill effects of that debt will not be erased. Because of the debt her credit might be extraordinarily low, once that debt is removed from the record it'll still take a lot of time to build that credit back up to "good".
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Google says it's between 7 and 7.5 years, and the companies can't legally report it beyond that.
They CAN, however, have a judgement filed against you, which lasts for 10 years, and at the end of 10 years they can have that judgement renewed. She must have no income and no assets, because any decent collections company would have levied her paycheck. |
Originally Posted by therieldeal
(Post 495359)
So who has heard of the so called "7 year rule" for credit card debt?
My friend was just telling me how awesome it is that pretty soon the 7 year rule will kick in and her debt will be cleared. I was like wtf are you talking about? Apparently when she turned 18 she got a credit card, maxed out the ~3k limit... cut it up, threw it away, and never looked back. She ignores debt collectors and whatever... and I guess after you are delinquent for 7 years they can't do a damn thing about it. It goes off your record and everything, you get a clean slate, fresh credit score, etc. WTF is up with this BS? someone's never watch Suize Orman. Her show pretty much spells out how one can get away with as much as possible, she always suggest bankruptcy to people, avoid bill collectors until they give up, or offering Y amount for X debt to CC companies. |
what is this "show" you speak of? i haven't had TV in years lol
i'm not sure how she hasn't wound up in court yet, maybe things are different in florida |
It will catch up with her... Don't worry.
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Originally Posted by thagr81 us
(Post 495428)
It will catch up with her... Worry.
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Originally Posted by thagr81 us
(Post 495428)
It will catch up with her... Don't worry.
(Check your SOL here) The statute of limitations is a powerful tool for consumers'. The SOL can thwart off lawsuits and collectors. If a debt is legally expired, you can escape being sued or having to pay an old debt! Likewise, it can be detrimental because many debtors unwillingly renew the SOL by making a partial payment or a written promise to pay which can extend the statute. The statute of limitations is a civil code. Each state has its own statute, For instance, the code section in Cal. Code of Civil Procedure § 337. The legal meaning for statute of limitations is: THE TIME OF COMMENCING ACTIONS-Time allowed that litigation-lawsuit can be brought. (See complete legal meaning of Statute of Limitations). After that time, it has expired. Statute is a law. Passed by legislation and varies by state. The original statute of limitations begins at the onset of the contract signing (see more below for time barred debts). Statute of limitations vary from state to state but it is usually 4-6 years depending on the state. The term statute of limitations means the time allotted to legally enforce the debt. If a statute expires and someone sues you, It is up to you to bring the expired SOL defense to the other parties attention. If you say nothing or do not bring up the expired statute then the judgment can be entered. Don't assume it means the other party is barred from attempting to collect. It simply means that your defense is the expired SOL not to enforce the lawsuit. If your statute of limitations has expired that means that the debt cannot be enforced by lawsuit, that does not dismiss the debt and the creditor can still leave it on important your credit for 7 years (excluding some public records, those can remain for 10 years) but legally you do not have to pay it if the statute has expired. |
I maxed out my credit car for $5000 when I was 20 cause of school and books and my apr went up to like 22% so I was paying $200 min payment for 3 years and I still owed $5000 so six months ago I called them and told them I couldn't afford the $200 payment anymore so they dropped my apr to 5% and now my dept is going down quit fast.
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Originally Posted by miataspeed2005
(Post 495500)
I maxed out my credit car for $5000 when I was 20 cause of school and books and my apr went up to like 22% so I was paying $200 min payment for 3 years and I still owed $5000 so six months ago I called them and told them I couldn't afford the $200 payment anymore so they dropped my apr to 5% and now my dept is going down quit fast.
--Ferdi |
what CC company is that? i've been paying well over minimum payments for years and they just keep jacking the rate up higher and higher. i call andthey tell me its the best they can do. dbags
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Seriously do this.
call you CC company and tell them you cannot afford your payments and offer the X to clear all debts. bug them constantly, tell them youll have to stop paying it off at all, ask for managers and plee and be persistent. eventually theyll cut a deal. you just gotta offer some cash and threaten that youll start to become delinquent. dont ask what they can do better, offer them a deal. |
Originally Posted by Braineack
(Post 495530)
Seriously do this.
call you CC company and tell them you cannot afford your payments and offer the X to clear all debts. bug them constantly, tell them youll have to stop paying it off at all, ask for managers and plee and be persistent. eventually theyll cut a deal. you just gotta offer some cash and threaten that youll start to become delinquent. dont ask what they can do better, offer them a deal. |
cspence you are 100% correct on what should happen the difference is most people dont prioritize like that or simply can't.
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there's also a thing called pride and paying for what you signed up for.
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It's Bank of America, and simply I just called and told them I can't afford these rediculous apr's that kept going up and I told them that if they didn't lower it that I wouldn't be able to pay anymore. So they gave me a couple of question like what's your income and bills, they added it all up and they see what you can afford.
I wish I've done this a long time ago! |
A few years ago I got into a situation where I basically stopped paying on a CC and a loan..totaling $10k. They did the usual calling bs and I ignored them. I really didn't have any money...long situation to say the least. Well, one of them filed a judgement against me and had the papers served to my house saying they were going to start the process of garnishing my wages. Bet your ass I started sending them some money. You see, once it goes delinquent, ANY payment send to them that gets accepted will save your ass if they try to take you to court....and they usually won't. They'll just accept the payment and keep bugging you. I started sending $50 a month to them and they cashed those checkes. I kinda hoped they would still take me to court because in many cases when lenders take clients to court and the client shows they've been making some effort, the judge can cut the debt owed down..and usually does. (was told this by several debt consultants and attorneys).
Well, here I am 3 years after I payed everything off and my credit score has gone up 150pts on average, I have a car loan with a awesome 5% rate, 2 credit cards and I just bought a blining new house. It pays to take care of debt and not be a pussy. Sure, they may not take you to court, but you have to be one lazy, goal-less fuck to just let it go for that long. Oh, BTW, if a lender starts garnishing your wages...employers get mad because it's a TON of extra paperwork they have to do. I've workd at places where people were let go because of such situations. |
If you get a settlement with a creditor, the IRS will consider the difference between what you owed, and what you paid to be "income". Just a heads up for when tax time comes around next year.
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yeah you get issued a simple 10-99 for the forgiven debt but overall most poeple wont have that as a factor.
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Originally Posted by Braineack
(Post 495651)
there's also a thing called pride and paying for what you signed up for.
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punch them.
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Originally Posted by Braineack
(Post 495786)
punch them.
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eh. details.
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details? idk...if you came to buy a car from me, and i punched you, would you still buy from me?
i think i'm confused here. |
That would depend on if I deserved it or not... If I was doing that crap, then I would deserve it.
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Every month we recieve a little booklet thing from our rental agency for our apartment. This month it has a section labeled "Understanding the credit score system: What it means to you." Towards the end in a part labeled "Some points to remember" it says "- A history of late payments is wiped off your credit score after seven years."
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Just wait till she tries to sell a house that she bought and finds there is a lien on it from a debt collection agency.
I refused to pay the state of Indiana income tax on income I didn’t even make in the state from 1984. Only lived there for 8 months my sophomore year of high school and had filed a federal income tax statement because I had a summer job in another state. Some debt collector who bought the unpaid debts from the state filed a lien on my house in 2003. This was the third state id lived in and the second house I had owned since not paying Indiana Income tax. Nothing I could do to sell my house other than pay the state income tax to the debt collector to remove the lien. Luckily I didn’t make that much money my sophomore year of high school so long ago. Bob |
I paid off $125,000 in CC debt in 1999 and haven't carried a balance since then. Paid off the house 2 years ago and the MSM 6 months ago. My goal is a credit score of ZERO (it drops ever time I check it).
What is interesting is that when we paid off the $125K we had 22 maxed out cards (12 were my wife's and she had not had a job in 10 years!) and I used to get a stack of fresh CC offers every week. I never get one in the mail now. In fact, a lot of my junk mail has stopped. I guess they realize that I am just not a good customer any longer. |
Originally Posted by rmcelwee
(Post 496091)
I paid off $125,000 in CC debt in 1999 and haven't carried a balance since then. Paid off the house 2 years ago and the MSM 6 months ago. My goal is a credit score of ZERO (it drops ever time I check it).
What is interesting is that when we paid off the $125K we had 22 maxed out cards (12 were my wife's and she had not had a job in 10 years!) and I used to get a stack of fresh CC offers every week. I never get one in the mail now. In fact, a lot of my junk mail has stopped. I guess they realize that I am just not a good customer any longer. We unfortunately still use our card for gas, and pay it monthly, just for convenience. I would appreciate any tips you have on living frugal though...you seem like a pro. Anything you've written up anywhere besides here? |
Originally Posted by gospeed81
(Post 496238)
I've read several of your posts on this...and you're still my hero.
We unfortunately still use our card for gas, and pay it monthly, just for convenience. I would appreciate any tips you have on living frugal though...you seem like a pro. Anything you've written up anywhere besides here? https://www.miataturbo.net/forum/t42130/#post496372 |
Originally Posted by rmcelwee
(Post 496373)
I was writing a long post but I will start a separate thread "How to live within your means (and be happy)..."
https://www.miataturbo.net/forum/t42130/#post496372 |
credit can be good.
like using an airline miles card for paying your bills/rent and then paying it off at the end of the month. free miles! |
Originally Posted by y8s
(Post 496419)
credit can be good.
like using an airline miles card for paying your bills/rent and then paying it off at the end of the month. free miles! My car expenses are part of a budget. Freaking hard to fallow that budget. when we got married my wife had 60k in credit card debt plus student loans. Bob |
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