News, Culture & Society

What Happens After 7 Years Of Not Paying Debt?

“If a debt is unpaid for seven long years, it simply disappears.” – Do you believe that? Unfortunately, you are not alone. But this is not the real case every time. Therefore, it is essential to learn about what happens to one’s unpaid debts over time. People should not try to manage personal financial situations based on any misinformation like this.

Often the debtors think that they won’t have to worry about their outstanding payments after seven years.  They also believe that a professional debt collection agency won’t be able to recover the outstanding debts after such a long time. But it is not as straightforward as it seems to be.

Contrary to popular belief,  the credit debt you owe does not disappear after seven years.  However, your creditor has a limited time suing you for the debt, and the time frame is known as a statute of limitations.

A Brief On The Statute Of Limitations

The rules and regulations of a statute of limitations vary from one state to another. Your state’s specific system dictates for how long a credit card company or collection agency can file a lawsuit against the debtor for delinquent debts. The statute of limitations for credit card debt collection is usually less than seven years in many states. Once the limits expire, the creditors lose the legal right to drag the debtor to court. But they can still try to persuade the debtor to pay off the outstanding credit card debt.

But when the limitations expire, it doesn’t mean that the debtor is no longer obliged to pay the defaulted payment. The confusion varies from one state to another. While some states classify the expired statute of limitations as ‘zombie’ debt,  some state attorneys have debt collection agencies for investigating and going after the zombie debts. Therefore, there is no universal truth that applies to the seven years old debt argument.

When the debt is past the statute of limitations, why can’t one remove it from the credit report?

A credit report always keeps all the payment histories even after the debt is expired. Usually, a delinquent account stays on the credit report for seven years from the first time the debtor missed a payment.

So, Where Do The Delinquent Debts Go After Seven Years?

It’s unlikely that the original credit card company still owns the debt even after seven long years. Usually, companies charge off debts after three months and assign or sell these to debt recovery agencies. Collection calls and emails won’t be sent during the account transmission process. But it surely does not mean that your debt disappeared. It might indicate that your account is undergoing a transmission instead. Popular debt collection agencies even have records of pursuing and collecting 20 years old debt even when the statute of limitation is officially over.

The Role Of A Collection Agency

Creditors transfer their debts to a debt collection agency when a defaulted amount is more than a few months old. This change can often be confusing for the consumers as they might wonder why someone other than their creditor is calling to get the due payments. For example, First Capitol Collections is one such reputed debt recovery agency that provides debt recovery services to all types of businesses.

When they take up the responsibility of collecting a debt, they gain the power to sue the debtors for the past due amounts. Plus, they believe in taking decisive and firm action. First Capitol’s expert team aims to collect the money efficiently and swiftly.  To initiate efficient collection, they rely upon the tech-savvy era of artificial intelligence-powered by their partners Experian and Equifax. Their experienced case managers analyze essential data and information to decide the quickest, best, and appropriate way to collect the debts.

Most importantly, First Capitol aims to secure immediate payment or reach a mutual settlement quickly on the creditor’s behalf. Their job roles often include visiting the office and even the debtor’s home to collect the dues in person.


When hiring a debt collection agency like the First Capitol, keep in mind that every debt varies from one another, and their rules and regulations are also not the same. Therefore, you debt collector can’t guarantee any specific time-frame to collect your debts, but they do their work with honesty and a professional approach. Feel free to consult First Capitol for all your debt collection recovery needs.