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Old debts can have long lives
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A New York City woman is still haunted by mistakes she made as a "financially green teenager." But now her finances are on track, and she's eager to clear her credit report of those bad debts from the past.
"I know about the seven-year rule that says after seven years your credit report is wiped clean," she explained. But she's confused about just when the seven-year period begins, and whether any current open accounts she has will affect the removal of those old debts. "I'm working really hard to reestablish my credit," she said.
Negative information is removed in accordance with federal law, without regard to the status of any other account. The challenge is figuring out when the magical date of removal will occur. Here are some guidelines straight from Experian, one of the three big credit reporting agencies:
- Delinquencies: A record payments made from 30 to 180 days after their due dates will remain for seven years from the date of the missed payment.
- Collection accounts and chargeoffs: Accounts that have been turned over to a collection agency and those the creditor writes off as bad debts remain for seven years from the date of the initial missed payment.
- Closed accounts: Those without a balance will remain on your credit report for seven years from the date they are reported closed. Those with a balance will remain on your credit report for seven years after your final payment.
- Bankruptcies: Chapters 7, 11 and 12 remain for 10 years from the filing date. Chapter 13 remains seven years from the filing date.
- Child support, civil and small claim judgments remain for seven years from the date the judgment is filed.
- City, county, state and federal tax liens remain seven years from the filing date of the lien.
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