# Bad Credit



## sujeetss (Jan 11, 2011)

Hi Friends,

I had stayed in US from 2000 to April 2003 as a Student. When I left US i had a debt of around 2000-3000 $ on my credit card and a Car which I had purchased from carmax in 2002. Before leaving from US I had made all my payments on time including credit card and the car payments. I was not able to come back to the US at that point of time and couldnt continue making my payments. Now I am coming back with a Job maybe in April 2011. So would like to know what issues I can face.

I am ready to pay off my debts as I dont want a debt in my name.

Will I be able to get a House for rent or open a bank account. Not Sure about these.


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## twostep (Apr 3, 2008)

Contact your creditors. The items were probably charged off and sold so be patient. You can pull a credit report but be advised that the one a creditor pulls is more detailed.


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## American_Woman (Mar 31, 2010)

Some debts are no longer listed after 7 years. However, it took me 9-10 years to get a completely clean credit report. It also depends on state as well. In Texas there are certain laws that prevent creditors from collecting from you after so long and they cannot garnish your wages, etc. You may no longer have a debt to pay! Even if I had the money to pay my old debt from 2000 there is no way for me to know how many times it's been sold and to whom. If that's your case, count yourself lucky and don't make the same mistake next time. =P


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## twostep (Apr 3, 2008)

American_Woman said:


> Some debts are no longer listed after 7 years. However, it took me 9-10 years to get a completely clean credit report. It also depends on state as well. In Texas there are certain laws that prevent creditors from collecting from you after so long and they cannot garnish your wages, etc. You may no longer have a debt to pay! Even if I had the money to pay my old debt from 2000 there is no way for me to know how many times it's been sold and to whom. If that's your case, count yourself lucky and don't make the same mistake next time. =P


a) There is a moral obligation
b) Bad debt does not "go away" after the infamous seven year rumor. I am not very familiar with TX law but have encountered my fair share of folks who disregarded old debt until it turned into an issue when they wanted to buy a house ... 
c) Advising to ignore a legally owed debt in the US? Agencies are hungry as they pay up front and researchers have a lot of avenues at thier fingertips compared to 2000.


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## American_Woman (Mar 31, 2010)

twostep said:


> a) There is a moral obligation
> b) Bad debt does not "go away" after the infamous seven year rumor. I am not very familiar with TX law but have encountered my fair share of folks who disregarded old debt until it turned into an issue when they wanted to buy a house ...
> c) Advising to ignore a legally owed debt in the US? Agencies are hungry as they pay up front and researchers have a lot of avenues at thier fingertips compared to 2000.


Well, mine did go away after 9 years. And I did buy a house so...Obviously there is a moral obligation to pay but we all make mistakes or get into situations that make paying it back impossible. As I said, you should chalk it up as a lesson learned and not make the same mistakes again. Never advised to ignore it. You should find out if you still owe but if you don't, C'est la vie!


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## twostep (Apr 3, 2008)

American_Woman said:


> Well, mine did go away after 9 years. And I did buy a house so...Obviously there is a moral obligation to pay but we all make mistakes or get into situations that make paying it back impossible. As I said, you should chalk it up as a lesson learned and not make the same mistakes again. Never advised to ignore it. You should find out if you still owe but if you don't, C'est la vie!


Lucky you!
Unless it is paid it is owed. There is no finding out about it.


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## American_Woman (Mar 31, 2010)

sujeetss said:


> Hi Friends,
> 
> I had stayed in US from 2000 to April 2003 as a Student. When I left US i had a debt of around 2000-3000 $ on my credit card and a Car which I had purchased from carmax in 2002. Before leaving from US I had made all my payments on time including credit card and the car payments. I was not able to come back to the US at that point of time and couldnt continue making my payments. Now I am coming back with a Job maybe in April 2011. So would like to know what issues I can face.
> 
> ...


Here is an interesting article for you. Try to find out who has the accounts now, as they have probably been charged off many times. Some bank's may run a credit report and others will not. I don't see you having an issue renting a place to live or opening a bank account. But who knows, at least run your own credit report and see what it has to say.


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## Fatbrit (May 8, 2008)

sujeetss said:


> Hi Friends,
> 
> I had stayed in US from 2000 to April 2003 as a Student. When I left US i had a debt of around 2000-3000 $ on my credit card and a Car which I had purchased from carmax in 2002. Before leaving from US I had made all my payments on time including credit card and the car payments. I was not able to come back to the US at that point of time and couldnt continue making my payments. Now I am coming back with a Job maybe in April 2011. So would like to know what issues I can face.
> 
> ...


Debts can be removed from your credit history 7 years (non-IRS) after your last activity on the account.

Debts can effectively live for your lifetime, but the period in which you can be successfully sued for them is controlled by the statute of limitations in your particular state. For example, if you were a resident of Arizona, the credit card debt would be out if they failed to bring you to court within 3 years of the last action by you on the account. They could still sue you, but in all likelihood you would be able to have the case dismissed with a simple motion for summary judgment.

There are many credit boards who will provide guidance. There are also plenty of "debt counselling" companies out there -- most of which are a total waste of time and will make your situation worse.

Noting the age of your debts, it might actually not be in your interest to attempt settle provided they did not obtain a court judgment against you.


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## American_Woman (Mar 31, 2010)

Thx Fatbrit for summing it up better than I could. lol


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