Pierre Money Mart Blog

Collectors only have a certain amount of time to sue you for payments. The first thing you should do is determine if the statute of limitations for collecting a debt in your state have past. If the debt is older than the statute of limitations, tell the bill collectors they are wasting their time by harassing you for an uncollectable debt, as the original creditor or the assigned collection agency cannot take you to court to get a judgement.

After 7 seven years (in most cases), a negative mark and the related collections will disappear from your credit report. If the debt has gone unpaid for 7 years, then it can no longer legally remain on your credit report. You can challenge this listing on your credit report and it will come off. Please note: the amount of time a late payment can appear on your credit report has nothing to do with the statute of limitations. Very important distinction. Even though a debt may no longer legally appear on your credit report after 7 years, you could still be sued for the debt if the statute of limitations for your debt in your state is not If the debt is gone from your credit report AND the statute of limitations is up on this debt, you’re home free! If enough time has passed for both the legal debt collection statutes of limitations and the credit report limitations has passed, don’t worry about the debt! If your debt meets both of these conditions, it is uncollectable and it
done!

When a person declares bankruptcy the Office of the Superintendent of Bankruptcy notifies the credit bureau. This information stays on your credit bureau report for 6 – 7 years. You can start to re-establish your credit by doing the following:

* Talk to your banker and say you want to re-establish your credit rating;

* Open a savings account;

* Be a regular and persistent saver. Use the common techniques I am sure you have heard of:

1) Pay yourself first;
2) Take your next raise and save it;
3) Save 5 % of your pay;
4) Have your savings come right off your pay and into a separate savings account;

* Take out a small loan using the savings account as collateral, and then pay it back;

* Apply for a secured credit card. Using a secured credit card is a quick way to rebuild your credit rating.As you make regular payments your credit history looks better and better;

* Pay your credit card balances on time.