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Totally confused about SOL/reporting period


ElorraM
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On this website it says the following:

Accurate negative information generally can be reported for seven years, but there are exceptions:

...Information concerning a lawsuit or a judgment against you can be reported for seven years or until the statute of limitations runs out, whichever is longer; and

Some other rules to keep in mind:

The Statute of Limitations has nothing to do with the length of time something can stay on your credit report, they are two TOTALLY separate things. Again, there is absolutely NO relationship.

It says that the SOL has nothing to do with how long something can stay on your credit report but then it says in the same paragraph, the opposite: "Information concerning a lawsuit or a judgment against you can be reported for seven years or until the statute of limitations runs out, whichever is longer;"

So this is a different statute of limitations? Is there a SOL for how long the judgment can be collected on and an SOL for how long judgments can remain on credit reports by state? I’m confused. This seems to be contradictory.

Please help!

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The SOL for judgments varies big time. Some states has it at 20 years. Some states are 10. Some are less, some are renewable as long as it's done before the SOL expires.

Some items are even exempt (section (B) of section 605.

Take a look at the FCRA :§ 605. Requirements relating to information contained in consumer reports it explains it a little better.

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I'm sorry. I realized I wasn't very clear in my explanation.

Individual state laws vary with regard to SOL on judgments. If your state SOL is 10 years, then it is exempt from the 7-year rule and remains for 3 more.

The other "SOL" refers to the amount of time you are liable for the debt. So, if your state SOL on a revolving account is 4 years, you are not obligated to the debt after the SOL expires, but it will still remain on your report for the duration of the "seven year rule".

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OK, please humor me, I want to make sure I get this :D . And I really appreciate your responses. You said:

Individual state laws vary with regard to SOL on judgments. If your state SOL is 10 years, then it is exempt from the 7-year rule and remains for 3 more.

So that means if you live in a state with an SOL of ten years, technically the CRAs could leave it on there the whole ten years (paid or unpaid)? I have read though that they usually do take it off in 7 years despite this. Do you know if this true?

Does that also mean that the plaintiff (the entity that won the judgment) has ten years in which to collect the money from you (from garnishment or whatever), and then once that ten years is up they would have to get another judgment against you to try to collect? Or is a judgment good forever once it is won?

So I guess I am asking does that SOL have to do with both collecting and credit reporting time frame?

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So that means if you live in a state with an SOL of ten years, technically the CRAs could leave it on there the whole ten years (paid or unpaid)? I have read though that they usually do take it off in 7 years despite this. Do you know if this true?

Yes, that's why they say "whichever is longer". However, would the CRA's actually know what each individual state law says??? hint...hint...

Does that also mean that the plaintiff (the entity that won the judgment) has ten years in which to collect the money from you (from garnishment or whatever), and then once that ten years is up they would have to get another judgment against you to try to collect? Or is a judgment good forever once it is won?

Not once the ten years is up. They have to renew the judgment before the SOL expires.

So I guess I am asking does that SOL have to do with both collecting and credit reporting time frame?

In a way, yes, but don't use the term "SOL" when making reference to the CRA's - that's where it gets confusing. It's best to look at the "SOL" as the time you are liable for the debt.

Look at the CRA's as "reporting rules" - this is the "7-year-plus-180-day rule (for charge offs)", as well as their exceptions which is located in the section I posted.

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Thanks so much Doc for taking the time to respond to me. I really appreciate it. And now I understand! I was getting confused, because as you pointed out

“….don't use the term "SOL" when making reference to the CRA's - that's where it gets confusing. It's best to look at the "SOL" as the time you are liable for the debt.”

I was reading things that would use SOL and the time frame for credit reporting interchangeably.

Thanks again!

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