junk debt

Most of the time, charged off debts goes past the SOL time frame. These age old debts are often purchased by junk debt buyers and later they call the consumer to pay it off.

Check the SOL of your state. If the account is close to the seven years reporting time frame, one payment will open up the can of worms. It's like something negative in your credit report is renewed to a new item in negative status.

Collector cannot take legal actions against you after the SOL is expired. They might take you to the court but can????????t sue you.

[quote]Most of the time, charged off debts goes past the SOL time frame. These age old debts are often purchased by junk debt buyers and later they call the consumer to pay it off.
Most companies will charge off a debt after 6-9 months of payments. They either send it to a CA on congtingency or sell it off as junk debt.
Check the SOL of your state. If the account is close to the seven years reporting time frame, one payment will open up the can of worms. It's like something negative in your credit report is renewed to a new item in negative status.

Seven years is the magic number that a debt can be reported to the CRA. It has nothing to do with individual state SOL's.


Collector cannot take legal actions against you after the SOL is expired. They might take you to the court but can????????t sue you.

Yes they can! They can take you to court and sue you. It is the responsiblity for the borrower to use the defense of being past the SOL. I am pretty sure that there are a few states that prohibit suing outside the SOL but only a few.

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This is also why many of these debt buyers illegally re-age accounts on your CR, and make them appear as open revolving accounts. --To keep it on our CR.