How is a debt erased after seven years?

In California, consumer debt defense law states that debt may be erased from an individual’s credit score after seven years. Once the debt has reached seven years old, it is removed from the person’s credit score and no longer affects their credit history. This is known as the “7-year rule”. In order for debt to be erased, the account associated with the debt must have been closed, charged off, or in default status for seven years. If the account is not in one of these statuses, the debt will stay on the consumer’s credit report. The removal of the debt occurs automatically, and the consumer does not have to communicate with the creditor in order for it to be erased. Once the debt is gone, the consumer’s credit score will be much higher, meaning they will be seen as a more reliable borrower in the future. The consumer debt defense law in California helps protect consumers and allows them to get back on track financially if they had to deal with a situation that caused them to become delinquent on their payments in the past. The 7-year rule encourages individuals to stay in good standing with all their accounts, as any debt that is unpaid after seven years will be removed from their credit score and no longer affect their financial standing.

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How is a debt erased after seven years?

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