7 year rule - Miata Turbo Forum - Boost cars, acquire cats.

Welcome to Miataturbo.net   Members
 


Insert BS here A place to discuss anything you want

Reply
 
 
 
LinkBack Thread Tools Search this Thread
Old 12-14-2009, 03:36 PM   #1
Senior Member
Thread Starter
iTrader: (2)
 
Join Date: Oct 2007
Location: Northeastern CT
Posts: 547
Total Cats: 2
Default 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 ******* everyone over, causing the rates to go up! People here were giving me **** 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?!
therieldeal is offline   Reply With Quote
Old 12-14-2009, 03:40 PM   #2
Elite Member
iTrader: (1)
 
NA6C-Guy's Avatar
 
Join Date: Feb 2008
Location: Birmingham Alabama
Posts: 8,038
Total Cats: 43
Default

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 I fail. First chance I get I'm paying that bitch off and closing the account.
NA6C-Guy is offline   Reply With Quote
Old 12-14-2009, 03:43 PM   #3
Senior Member
Thread Starter
iTrader: (2)
 
Join Date: Oct 2007
Location: Northeastern CT
Posts: 547
Total Cats: 2
Default

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
therieldeal is offline   Reply With Quote
Old 12-14-2009, 04:28 PM   #4
Elite Member
iTrader: (14)
 
Join Date: Mar 2006
Location: Edmonton, AB
Posts: 4,921
Total Cats: 0
Default

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 **** 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 ******* tard (hope she's hot, got pics?), she won't get away from her past transgressions unscathed. I can't imagine ******* 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.
jayc72 is offline   Reply With Quote
Old 12-14-2009, 05:04 PM   #5
Junior Member
iTrader: (1)
 
Join Date: Feb 2006
Posts: 196
Total Cats: 1
Default

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".
sicklyscott is offline   Reply With Quote
Old 12-14-2009, 05:05 PM   #6
Supporting Vendor
iTrader: (31)
 
Savington's Avatar
 
Join Date: Nov 2006
Location: Sunnyvale, CA
Posts: 14,370
Total Cats: 1,332
Default

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.
Savington is offline   Reply With Quote
Old 12-14-2009, 05:13 PM   #7
Boost Czar
iTrader: (61)
 
Braineack's Avatar
 
Join Date: May 2005
Location: Chantilly, VA
Posts: 72,899
Total Cats: 1,792
Default

Quote:
Originally Posted by therieldeal View Post
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.
Braineack is offline   Reply With Quote
Old 12-14-2009, 05:40 PM   #8
Senior Member
Thread Starter
iTrader: (2)
 
Join Date: Oct 2007
Location: Northeastern CT
Posts: 547
Total Cats: 2
Default

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
therieldeal is offline   Reply With Quote
Old 12-14-2009, 05:54 PM   #9
Elite Member
iTrader: (5)
 
Join Date: Apr 2007
Location: Wellford, SC
Posts: 1,704
Total Cats: 1
Default

It will catch up with her... Don't worry.
thagr81 us is offline   Reply With Quote
Old 12-14-2009, 06:26 PM   #10
Elite Member
iTrader: (2)
 
miata2fast's Avatar
 
Join Date: Aug 2009
Location: Dover, FL
Posts: 2,901
Total Cats: 109
Default

Quote:
Originally Posted by thagr81 us View Post
It will catch up with her... Worry.
Fixed
miata2fast is offline   Reply With Quote
Old 12-14-2009, 06:42 PM   #11
Boost Czar
iTrader: (61)
 
Braineack's Avatar
 
Join Date: May 2005
Location: Chantilly, VA
Posts: 72,899
Total Cats: 1,792
Default

Quote:
Originally Posted by thagr81 us View Post
It will catch up with her... Don't worry.
lets see...

Quote:
(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.
Braineack is offline   Reply With Quote
Old 12-14-2009, 09:36 PM   #12
Senior Member
iTrader: (3)
 
Join Date: Jul 2005
Location: Connect-I-Cut
Posts: 1,431
Total Cats: 0
Default

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.
miataspeed2005 is offline   Reply With Quote
Old 12-14-2009, 09:55 PM   #13
Junior Member
iTrader: (6)
 
Join Date: Dec 2008
Location: Boulder, CO
Posts: 291
Total Cats: 7
Default

Quote:
Originally Posted by miataspeed2005 View Post
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.
Imagine if you would have called them 3 years ago .

--Ferdi
ftjandra is offline   Reply With Quote
Old 12-14-2009, 10:46 PM   #14
Senior Member
Thread Starter
iTrader: (2)
 
Join Date: Oct 2007
Location: Northeastern CT
Posts: 547
Total Cats: 2
Default

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
therieldeal is offline   Reply With Quote
Old 12-14-2009, 10:58 PM   #15
Boost Czar
iTrader: (61)
 
Braineack's Avatar
 
Join Date: May 2005
Location: Chantilly, VA
Posts: 72,899
Total Cats: 1,792
Default

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.
Braineack is offline   Reply With Quote
Old 12-14-2009, 11:08 PM   #16
Elite Member
iTrader: (11)
 
Join Date: Jun 2007
Location: Meriden, CT
Posts: 2,072
Total Cats: 1
Default

Quote:
Originally Posted by Braineack View Post
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.
I thought I remembered Suze saying that its almost better to go delinquent than trying to stay current and strike a deal with cc lenders.....since cc lenders will be more likely to work with you so they are not left completely empty handed (Something's better than nuthin type deal)....It sounds stupid, I mean why don't they just work with people while they are current, but I guess actions speak louder than words. My motto is, PAY OFF ALL CC DEBT EVERY MONTH!
Cspence is offline   Reply With Quote
Old 12-15-2009, 01:13 AM   #17
:(
iTrader: (7)
 
Join Date: Jul 2006
Location: nowhere
Posts: 8,281
Total Cats: 2
Default

cspence you are 100% correct on what should happen the difference is most people dont prioritize like that or simply can't.
magnamx-5 is offline   Reply With Quote
Old 12-15-2009, 08:25 AM   #18
Boost Czar
iTrader: (61)
 
Braineack's Avatar
 
Join Date: May 2005
Location: Chantilly, VA
Posts: 72,899
Total Cats: 1,792
Default

there's also a thing called pride and paying for what you signed up for.
Braineack is offline   Reply With Quote
Old 12-15-2009, 08:49 AM   #19
Senior Member
iTrader: (3)
 
Join Date: Jul 2005
Location: Connect-I-Cut
Posts: 1,431
Total Cats: 0
Default

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!
miataspeed2005 is offline   Reply With Quote
Old 12-15-2009, 11:16 AM   #20
Elite Member
iTrader: (12)
 
Join Date: Sep 2007
Location: Charlotte, NC
Posts: 6,868
Total Cats: 66
Default

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 *** I started sending them some money. You see, once it goes delinquent, ANY payment send to them that gets accepted will save your *** 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 *****. Sure, they may not take you to court, but you have to be one lazy, goal-less **** 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.
Doppelgänger is offline   Reply With Quote
 
 
Reply

Related Topics
Thread Thread Starter Forum Replies Last Post
Project Gemini - Turbo Civic on the Cheap Full_Tilt_Boogie Build Threads 59 12-15-2017 09:00 PM
15x10 - 15x11 6UL @ 949 Racing emilio700 Wheels and Tires 151 06-02-2017 03:36 PM
Changing from 460cc to flow force 610cc in diypnp 90 Turbo MEGAsquirt 19 10-19-2015 04:23 PM
Noob to Miataturbo from MA JxPhan Meet and Greet 3 10-02-2015 03:17 AM


Thread Tools Search this Thread
Search this Thread:

Advanced Search

Posting Rules
You may not post new threads
You may not post replies
You may not post attachments
You may not edit your posts

BB code is On
Smilies are On
[IMG] code is On
HTML code is Off
Trackbacks are Off
Pingbacks are Off
Refbacks are Off



All times are GMT -4. The time now is 02:31 AM.