 If you have defaulted on debt payments in any way, that fact will show up on your credit report. If you file for bankruptcy, that black mark will be there as well. How long?
Bad debt marks. These can stay on your credit history for up to seven years. If they are a part of debt consolidation payments, then the accounts will show closed, but if they are in progress, they will show opened. Once you are completed with your debt repayment activities on an account, it should be deleted from your credit report. If it does not get expunged, then you can send a letter to the credit agencies to dispute the entries and have them removed in that manner.
Bankruptcy. A bankruptcy stays on your credit history for 10 years. It is part of the bankruptcy process and is a price you pay for being in a position to have to file for it.
Debt collectors. Debt collectors are very shrewd and persistent organizations. They often buy old debt and then attempt to get those who owe money to pay even though the debt may not even be valid. This can happen with accounts that have been closed or even paid in full. Old past due accounts are usually sold in bulk so the possibility that an account that has been settled is included in a group like this is pretty high, unfortunately.
The best way to deal with this is to keep good records. If you pay off a loan, then keep your final statement that shows a zero balance for future reference and proof that you do not owe money on the account. Showing this to debt collectors should stop any further calls on it. If not, then you can pursue legal means to get them to cease.
Statute of limitations. Every state has limits on how long an uncollected debt is valid, but the standard is about six years. If you are called and somehow admit that you owe money on the account, it can re-start the account to active status and you will be liable for it. Before you admit to any debts of any kind, ask for proof in writing. If you never receive proof, then show your own proof that the account is paid in full and is over the statute of limitations.
Debt will follow you for a long time, but you must be vigilant in getting rid of both it and the after effects that follow. It is better to make the efforts to do so in order to restore your credit and thereby be able to obtain favorable financing in the future on items like houses and vehicles.
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Reducing Debt