The Answer is usually 7-10 years. A Break down by account types is below:
- Collection Accounts – Are required to be removed 7 years from the date of default on the original account. The “date of default” is the date that the original account became 180 days or approximately 6 months past due. The date the original account was assigned to the collection agency is NOT the date when the 7 year clock starts ticking. Problems arise in find the actual default sate since many creditors tend to flip accounts from one collection agency to another.
- Foreclosures and Repossessions – Required to be removed after 7 years from the date of the original terminal delinquency. “Terminal Delinquency” means that the account has been unpaid for 180 days, which leads to the foreclosure or repossession. This is not the same date that the foreclosure was filed. In some instances foreclosures have been filed at 45 days delinquency, and in others they have been over 2 years delinquent before the foreclosure action was filed.
- Charge Offs – Required to be removed 7 years from the date of original terminal delinquency.
- Settlements – Required to be removed 7 years from the date of original terminal delinquency.
- Late Payments – Required to be removed 7 years from the date the late payment occurred. The account does not have to be removed if it did not go into default, just the late payments associated with the account. I do not see this being followed by the credit bureaus unless you point it out.
- Judgments – Required to be removed 7 years from the date the judgment was filed, whether it has been satisfied or not.
- Bankruptcies – Chapter 7 bankruptcies must be removed no later than 10 years from the date filed. Chapter 13 bankruptcies can remain on your credit reports for 7 years from the date of discharge, though this date may not exceed 10 years from the date filed.
- Tax Liens – Paid and released tax liens are required to be removed from your credit reports 7 years from the date released. Withdrawn tax liens will be removed from your credit reports immediately. Unpaid tax liens are never required to be removed from your credit reports.
- Federal Student Loans – The FCRA is silent on the issue of defaulted federal student loans. Credit reporting limitations for these items are governed by the Higher Education Act. Once a defaulted student loan has been paid it is required to be removed from your credit reports after 7 years. However, unpaid federal student loans can remain upon your credit reports forever. The good news is that they may not be able to sue you or collect on them depending on the Statute of Limitations in Your State. In Florida they need to initiate suit on a written contract within 5 years of the default. F.S. §95.11(2)(b).
In some instances items that normally would be removed and not appear still may be on your report:
- Report is used for employment screening of a job expected to pay $75,000 or more.
- Report is for a life insurance policy with a value of $150,000, or more.
- Report is used as part of loan underwriting for an amount of $150,000, or more.
Filing Bankruptcy will result in the other negative items, other then Student Loans , Judgments( if a Motion is not filed) and Tax Liens being zeroed out on your credit report with the notation included in bankruptcy or in some cases totally removed. Bankruptcy will actually increase your credit score once your discharge is entered. For a free consultation please contact my office.
Carol A. Lawson, Esq., 28870 U.S. Hwy19 #300, Hodusa Towers, Clearwater, FL 33761 Phone: (727) 410-2705 email: firstname.lastname@example.org