In regards to any derogatory marks (collection/charge-off/late pays/etc) they are only allowed to legally show them on your credit report for up to 7.5 years from the Date of First Default (or Date of First Delinquency.). What was the DOFD? Does it say specifically on your report that it was going to fall off 6/1 or is it due to your calculations? Once the 7.5 year marks hits from the DOFD then any agency still reporting that debt on your report must legally remove. You can dispute it with the CRA to have it deleted. Once the 7 year marks hits, the OC or CA that are reporting the account basically have 6 months to remove the derogatory mark. You can have it removed sooner though, if it's hit the 7 year mark or even sometimes up to six months BEFORE then, by talking to the CRA that it is being reported from. I've seen/heard success stories like that.
As for paying, once it's outside your state's SOL you are not able to be sued for the debt anymore. They can't MAKE you pay. But they CAN contact you asking to pay, and it can be sold to another agency down the line and they can bug you too. But if it's outside the SOL and you don't want to or cannot pay, sending a C&D letter should suffice. You can still pay because you feel it is the right thing as it is a debt you owe, but nothing can make it return to your credit report after it's fallen off due to time. What state do you live in? Some states have SOLs as long as 15 years, like Kentucky I believe, some as short as 3 years, like D.C. The debt may fall off your report but still be inside the SOL. Few states have SOL longer than 6 years, but there are some.
NO ONE can report a debt that has fallen past the CRTP (credit reporting time period). If anyone tries to "re-age" the debt by posting an inaccurate DOFD to get it back on to your credit report, what they are doing is ILLEGAL. You cannot re-age debts.
Hope this was helpful. 
@jacksont81 wrote:
Wow xaiduz114 that post really helped me tremendously! I live in New York State so not sure what the SOL is for my state. My credit report says its supposed to come off 6/1 I wasn't going to check again until August just to give it time before I call the CRA to request to take it off. Now the thing is will this help or hurt my score? I guess its better to have it completely off even if my score goes down. Im in the process of some PFD's and got 2 new CC's to start rebuilding so I will gain points eventually.
Here. New York's SOL is 6 years across the board, so I'm assuming that you are outside the SOL. Legally you cannot be sued for the debt anymore, assuming that YES you are at the 7 year mark, which it sounds like you are. If you want to wait until August to check for it's removal you can, but they do have up to 6 months to remove their negative tradeline. I hear a lot of people dispute before then to have it removed and receive a bump in their score sooner.
As for your score specifically, how old is the TL, and what are your other ones? If it lowers your AAoA, you may take a hit, I'm guessing, but having the negatives removed will also help your score. It's one of those things where it depends on the specifics of your situation, and I can't tell you for sure what will happen. But yes, time does heal all credit wounds, and having these negatives removed will help your score, and any loss will just improve over time as your accounts grow older anyways. AAoA only accounts for 15% of your FICO score. How much you owe is 30%, and your payment history is 35%, so I think the positive rise will outweigh any negative slide in your score. But again, it's a YMMV situation.
OK... I've got nothing to add, handled nicely there guys!
July 2013 score: EQ FICO 819, TU08 778, EX "806 lender pull 07/26/2013
Goal Score: All Scores 760+, Newest goal 800+
Take the myFICO Fitness Challenge
Current scores after adding $81K in CLs and 2 new cars since July 2013
EQ:809 TU 777 EX 790 Now it's just garden time!
June 2017 update: All scores over 820, just pure gardening now.
@Shogun wrote:OK... I've got nothing to add, handled nicely there guys!
This really makes me feel like I've learned. 
@xaiduz114 wrote:
@Shogun wrote:OK... I've got nothing to add, handled nicely there guys!
This really makes me feel like I've learned.
Well, quite franky, I was impressed! Very nice work!
July 2013 score: EQ FICO 819, TU08 778, EX "806 lender pull 07/26/2013
Goal Score: All Scores 760+, Newest goal 800+
Take the myFICO Fitness Challenge
Current scores after adding $81K in CLs and 2 new cars since July 2013
EQ:809 TU 777 EX 790 Now it's just garden time!
June 2017 update: All scores over 820, just pure gardening now.