Debt delinquency timeline: what to expect

Things to remember
7 of 7
  • The federal Fair Debt Collection Practice Act doesn't cover debt collection calls from the original creditor.
  • Know your state laws. Each state has different laws regarding wage garnishment, seizure of assets and statute of limitations for debt collection.
  • Any payment will restart the statute of limitations. "Some collectors will try to trick you as the statute is approaching. They will call and ask for just a small payment, like $10, to renew the statute," says Andrew Housser, a board member of the American Fair Credit Council, a group formerly known as The Association of Settlement Companies.
  • All information regarding the delinquent account will live on your credit report for seven years from the date you first missed a payment, says Rod Griffin, director of public education at Experian.
  • Third-party debt collectors sometimes sell off debt to another debt collector if they haven't had any success. Make sure the debt shows up as the same account on your credit report. Sometimes it may look like another delinquent account, and you'll want to dispute any duplicates.




Show Bankrate's community sharing policy
          Connect with us
Credit cards on a table

Get advice for managing credit cards, building your credit history and improving your credit score. Delivered weekly.

Debt Adviser

Who pays deceased mom's debts?

Dear Debt Adviser, A couple of months ago, my friend's mother died. Her brother is handling the estate and has been wondering about their mother's $2,100 outstanding credit card debt. The mother had no assets except for... Read more

Partner Center

Connect with us