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If you’re having a hard time paying off your debts, such as a credit card, you’re probably doing your research on when your credit card debt technically “resets.”  What you’re going to find out is that every state is different, when it comes down to this law, so let’s take a look.

The process of debt collection

When you don’t pay off a company after a period of time, you will find that they will sell off your debts to another collection agency.  Generally, this collection agency is going to be able to get your debt for pennies on the dollar.  Now, this is when you’re going to find that the harassment is going to start, and it won’t start until you either tell them to stop, or you pay the bill.

The first thing that you’re going to want to do is check your state’s statue of limitations.   Let’s say that you live in Missouri.  They stay that you are going to be held responsible for 8 years.  Now, if this collector comes after you 9 years later, they legally can’t do this.  As long as you can prove it, they will have to wipe this debt clean and never contact you again.  If they are within the statue of limitations, you will have to either pay your bills, or continue to get harassed.

Looking at debt after 7 years

Now, let’s say that you either paid off debt, or you’re still ignoring it.  Technically, after 7 years, this is going to disappear off your credit report.  For example, let’s say you had a medical bill that was past due for $500.  You end up paying it down the line, but you waited a long time.  Even when you pay it in full, you’re going to find out that you will have to wait 7 years to get this removed most of the time.

What happens if it is still on my report?

If you’re finding that your credit report debt is still on your report after 7 years, you’re going to find out that you’re going to want to write them a dispute letter.  You’re going to want to make sure that you not only have evidence on the issue, you will want to make sure that you know where to send the letter.    Read this post on how to write a dispute letter for more information.

As every state is different with their laws, you will find with your credit report, that most of the time, your debts should be removed after 7 years.  While this isn’t always the case, be sure to consult with the credit report agencies if you have any questions in regards to your report.