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When the Statute of Limitations is done does the Credit Reporting Agencies take off the bad Debts?

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Regular Contributor

When the Statute of Limitations is done does the Credit Reporting Agencies take off the bad Debts?

I have an old debt that doesn't appear to have been part of the Bankruptcy in 2003 even though I am sure I included these items in the paperwork  (using my Credit Report) However the date of the last activity in one account was March 0f 2003, and the SOL in Michigan is 6 years for all debts. Should I write to the Credit Reporting Agencies to ask them to remove this item because the expiration of the SOL???

I guess I am confused if the SOl has lapsed does this mean it should not continue to flect of my credit report??? If you know please tell me so I can understand. Thank you in advance!!!

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Moderator Emeritus

Re: When the Statute of Limitations is done does the Credit Reporting Agencies take off the bad Debt

There are two different concepts at play. One is CRTP and the other is SOL.

SOL has to do with the timed limit set up by each state by which you can be sued for an unpaid debt. Using the 6-yr example for your SOL, you can't be sued for it after this month. Some may try to sue, but your defense is that the debt is "time-barred" and the judge will dismiss the case.

CRTP is set by federal law via the FCRA and has to do with the length of reporting period for debts. Most debts must drop off by 7-7.5 yrs from DOFD. So, this old debt should fall off sometime next year.
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