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7 year old debts


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Is it better to pay off a debt which hasn't been reported for 6 years (and will fall off the report in another year apparently) or just wait it out?

Imagine, of course, that the debt is a large sum.

Additionally, if that debt was sold to collections (which is being reported actively), should I be aiming to work with that collections agency and asking (in writing) if they will post my payments to them as "paying" or "active"...etc.?

I started on the path to credit repair ignorantly about two years ago and realized about $25,000 too late that accepting offers to "settle" old debts with collection agencies was actually hurting me rather than helping me so I'm trying now to seek out the best ways to pay old debts while improving my credit score and I'm a little gun-shy. Any experienced advice will be greatly welcomed!

One final critical information probably- I live in Indiana.

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I'm not sure I understand exactly what it is you're trying not to say, but...

If what you've got is an OC...who 6 years ago reported $0 balance and "sold to another lender" and has reported that way ever since...and, you've also got a JDB who bought that debt and is reporting consistently...

Then, no, its too late to pay the OC...they're not involved anymore.

As for the JDB, I'd suggest you use the DV process on them. Depending on the kind of debt, its possible they do not have sufficient records to prove this is your debt. (Paying a JDB will not help your credit scores in any way. And, its unlikely that they would accept payments, so, unless you can "settle" with them and have them delete their TL from your reports, it just won't help).

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Before you pay any debt check the statute of limitations for your state. It may be that this debt is uncollectable. Lots of people pay debts everyday that if they knew about it, couldn't be collected anyway! Once the SOL has expired you can be sued, but you have a defense.

Furthermore, as W2C mentioned, if you pay an unpaid 6 year old CO all you'll get is the status changed to "paid" or something similar....hardly worth the investment for something that is going to fall off in another year anyway.

As mentioned previously, always start with a DV. It's possible they don't even have the records and will remove the CO from your report.

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Edited by kevin3344
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It appears virtually all of the old debt I've lined up to finally pay off expires in 9 months by the SOL & is expected to fall off of my credit reports.

If I understand correctly that debt cannot be repaid to the OC by contacting them and saying "Let's take care of this" because to them it's already taken care of...and paying the collections agency basically has no value either? Can they take the debt they've purchased and carry it for X years, then sell it to someone else who then reclaims it; thus re-starting the 7 year cycle of it showing up on my report but under different claiming entities?

I have DV'd after I discovered the negative results from simply trying to pay off; the debts are valid and, so far, the record keeping has been sufficient.

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There is a difference between the SOL for the state in which you live, and the length of time that a derogatory debt can appear on your credit reports. The latter is 7-1/2 years from the "date of first delinquency" (DOFD) and once establish with the OC, never changes. If the OC sells it to a JDB, the DOFD doesn't change. If that JDB sells it to another, the OC's DOFD still doesn't change.

On the other hand, SOL is a state law. There are lots of variations, but in general, once past the SOL, then if the current owner of the debt sues, you have an affirmative defense. That doesn't mean that you don't still owe the debt, or that they won't try to collect or that they won't continue to hasslle you...it just means that you have a defense.

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