However, credit card debt is not written off after seven years if it remains unpaid. After 7 years, credit card companies can still sue you for unpaid debt, and depending on the law in your state, you might not be able to use the debt’s age as a defense. On average, it ranges from three to ten years across the country.
When does a debt become legally impossible to collect?
Debt Forgiveness Periods by State
| State | Agreement In Writing | Money Owed on Account Recouped |
|---|---|---|
| California | 4 | 4 |
| Colorado | 3 | 6 |
| Connecticut | 6 | 6 |
| Delaware | 3 | 3 |
What happens to credit card debt after statute of limitations?
Even though you can’t be sued for payment of a time-barred debt, you still have to pay it. You can try to ignore it, but debt collectors and credit bureaus won’t. Credit reports may show late payments for up to seven and a half years.
After 5 years, is it possible to pursue a debt?
The statute of limitations on most debts runs out after six years have passed since you last communicated with the creditor or made a payment. For mortgage debt, the grace period is significantly longer. If you (or anyone else who is on the hook for the debt if it’s joint) haven’t made any payments on the debt within the statute of limitations period, the debt may be legally uncollectible.
What happens to unpaid defaults after 6 years?
Even if you pay off the debt within that time period, a default will remain on your credit report for a total of six years from the default date. The good news is that even if you still owe the lender money, they cannot re-register the default once it has been deleted.
What’s the waiting period before your credit card company sues you?
Credit card companies are not allowed to immediately file suit against debtors who have fallen behind on payments. According to Morgan, creditors may make collection efforts for up to 18 months before filing legal action. On the other hand, she has seen companies inform customers of a lawsuit as late as six months after it has been filed.
