What will happen with my credit if I choose not to pay off a nearly6 year-old credit card debt?

Get Legal Help Today

 Secured with SHA-256 Encryption

What will happen with my credit if I choose not to pay off a nearly6 year-old credit card debt?

I have an outstanding debt to a major credit card company of approximately $12,000. It started out as about half that but it’s been sold to different collectors a few times and increases each time. The last time a payment was made on the balance was 6 years. For whatever reason, I haven’t been bothered by collectors for many years. Is it true that after six years they can no longer sue me for the amount? And what will happen with my credit report? I’m trying to rebuild my credit but considering the large amount of the debt, I’m unsure if it’s worth paying.

Asked on February 9, 2012 under Bankruptcy Law, Oregon

Answers:

SJZ, Member, New York Bar / FreeAdvice Contributing Attorney

Answered 9 years ago | Contributor

It does appear that in Oregon, the statute of limitations for a debt like this is 6 years. Note that is 6 years from when you defaulted, or when you were late or delinquent on a payment, so it's possible that (depending on the exact dates, etc.) that there is still some time to try and sue.

The credit rating agencies play it very close to their vests, vis-a-vis their credit rating formulas. The default will clearly strongly impact your credit, but the exact impact is difficult to determine (it also varies with what your rating is otherwise; as I understand it, a default hurts a 750 credit rating more than a 450, for example). Best guess is it knocks 100 - 200 points off your rating for several years.


IMPORTANT NOTICE: The Answer(s) provided above are for general information only. The attorney providing the answer was not serving as the attorney for the person submitting the question or in any attorney-client relationship with such person. Laws may vary from state to state, and sometimes change. Tiny variations in the facts, or a fact not set forth in a question, often can change a legal outcome or an attorney's conclusion. Although AttorneyPages.com has verified the attorney was admitted to practice law in at least one jurisdiction, he or she may not be authorized to practice law in the jurisdiction referred to in the question, nor is he or she necessarily experienced in the area of the law involved. Unlike the information in the Answer(s) above, upon which you should NOT rely, for personal advice you can rely upon we suggest you retain an attorney to represent you.

Get Legal Help Today

Find the right lawyer for your legal issue.

 Secured with SHA-256 Encryption