How is a debt erased after seven years?

In the state of Rhode Island, a consumer debt is erased after seven years according to the Consumer Debt Defense Law. This law applies to all debts that have been unpaid for seven years or more, including credit cards, medical bills, and personal loans. The seven-year period begins from the date of the last payment made on the debt. After the expiration of the seven-year period, the debt is legally released and the creditor cannot collect any more money from the debtor. This is known as the “Statute of Limitations.” When the statute of limitations has expired, the creditor is no longer legally able to collect the debt. The debt is then considered “time-barred” because it is past the seven-year statute of limitations. The consumer’s credit report is then updated to show that the debt is no longer listed as an active debt. However, even after the seven-year period, the debt can still appear on one’s credit report. Even though the creditor is not legally able to collect the debt, the debt will still be listed as a “time-barred” debt in the negative items section of a credit report. It is important to note that even though the debt is considered “time-barred,” it can still have a negative impact on one’s credit score. In Rhode Island, seven years is the time period that a consumer debt is erased under the Consumer Debt Defense Law. After the seven-year period has passed, the creditor can no longer legally collect the debt and it is no longer listed as an active debt. However, it will still be listed as a “time-barred” debt on a consumer’s credit report.

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How is a debt erased after seven years?

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