The Fair Credit Reporting Act includes Statutes of Limitations on how long negative credit can remain on your credit report. Here is a quick list for your reference.
Late Payments: 7 years from the late payment date
Collections, Charge-Offs: A late account becomes a collection or charge-off after it is 180 days past due. It must be removed 7 years after the last date of delinquency.
Chapter 7 Bankruptcy: 10 years from the file date.
Chapter 13 Bankruptcy: 7 years after the file date.
Judgments: These are more complex. They have a Statute of Limitations of 7 years; however, they may be revived at any time by the judgment holder, making them last indefinitely until paid.
Unpaid Tax Lien: Forever, no Statute of Limitations.
Paid Tax Lien: 7 years from the date of release.
Word of Advice: File the release with your courthouse so the 7-year clock starts.
Hot Tip: If an IRS tax lien is less than $25,000 and paid, you can use IRS Form 12277 to have it removed within 90 days.
Heartfelt thanks to Chad Kusner, President of Credit Repair Resources LLC, for this information.
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