Should you pay the credit accounts not listed on your credit report?

Problem

I am going through a strange debt problem. My car was repossessed around 10 years back as I was unable to make payments on the auto loan. I also defaulted on a credit card that time. I was going through financial problems at that point of time. So, I was compelled to stop paying the bill. Several years have passed since then. But I am surprised to see that none of the items have been listed on my credit report. How is this possible? Do I need to make payments on the debts since they are not showing on my credit report? Am I responsible for the debts still now? I live in New Jersey. Any information will be appreciated. Thanks.

Solution

After going through your query it seems that you are suffering from guilty conscience. If you have assured someone to pay for the services or products you have received, then it is advisable to fulfill your promise. It is your moral obligation to pay for the services you have received. However, if you are asking about legal responsibility, then it is another issue altogether.

As far as your case is concerned, you are less likely to be legally responsible for the debt. This is because the debts are well past the Statute Of Limitations (Sol) period. The Statute Of Limitations refers to the time period during which the creditors can take legal action against you for non-repayment of the debts. The time period varies from state to state. The Sol period in New Jersey is 6 years. So, it clearly indicates that the Sol period on the debts has expired. In short, you are not legally obligated for the debt.

However, if your creditor has secured judgment order from a court before the expiration of the Sol period, then you are still legally responsible for the debt. Normally, a judgment is valid for 20 years and it can be extended for another 5 years or so. So, if your creditors have obtained judgment order from the court then you are still liable for the debts. In such a situation, you can consult an attorney. You can ask question to the attorney and clear all your doubts from him/her.

It may be the case that the 2 items are not showing on your credit report as they are more than 7 years old. It seems that you have not gone through any problem (securing line of credit, mortgage, insurance, etc.) due to these debts. In such a situation, it completely depends upon you as to whether you want to make any payments on the debts. If you want to clear your dues, then send a settlement offer to your creditors. In case you don't wish to pay, then there is no need to do anything.