Statute Debt

[kentguy76]

From what date is a debt considered statute barred? Is it 6 years from the date you took out the loan or 6 years from when you last acknowledged the debt. Thanks

[PGH7447]

when you last made a payment or written acknowledgment

[clemma]

It's 6 years from the date of the last missed payment/last time debt was acknowledged in writing.

 

i.e. - last payment made April 2003, payment missed in May 2003 (clock to SB starts ticking) becomes statute barred May 2009.

[kentguy76]

so after the 6 years, does the debt get wiped from my credit file or does the black mark remain?

[cerberusalert]

It drops off automatically after six years.

[clemma]

The debt will always remain BUT no action can be taken to enforce it - including updating your credit file. The information on your file at the moment will eventually drop off and will never resurface.

[kentguy76]

so after 6 years, if I went to get a mortgage, the adverse credit would not hinder my chances?

[clemma]

If the adverse credit has dropped off your file, then the mortgage lender would not know about it.