How is a debt erased after seven years?

In Washington, a debt is erased after seven years through the Consumer Debt Defense Law. This state law protects consumers from creditors by limiting the amount of time a creditor can collect on a debt to seven years. After that time, the debt is legally considered “time-barred” and the creditor must stop all collection activities. The statute of limitations for a debt begins on the date that the debt was last paid or due by the consumer. The clock begins ticking at that time, and after seven years have passed, the debt is erased. This means that the creditor can no longer collect the debt from the consumer, nor can they report the unpaid debt to a credit bureau. If the creditor continues to attempt to collect the debt after seven years, the consumer has the right to sue the creditor for violations of the Consumer Debt Defense Law. It is important to note that if a consumer does pay on a debt after the seven years have passed, the creditor reserves the right to report the payment to the credit bureau. This may cause the debt to show up again on the consumer’s credit report. Therefore, if a consumer does choose to pay on a debt that has aged beyond seven years, it is best to have an agreement with the creditor in writing stating that the payment will not be reported.

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How is a debt erased after seven years?

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