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Understanding Re-Setting or Re-Aging Debts

debtResetIf your debt ends up going into collections, there is a possibility it may change hands a couple of times due to a creditor selling the debt or contracting another agency in attempt to collect it, all of which can happen more than once depending on the amount of time that’s passed since the debt originally went unpaid. It’s important to stay on top of who currently owns the debt or who is collecting your debt so that you know who needs to be paid back and when.

If your debt is sold to another collection agency, it doesn’t mean that your debt can be “reset or re-aged” from when it originally went into delinquency and appeared on your credit report. A delinquent debt can remain on your credit report for 7 years from the date of first delinquency. By law, collection agencies and creditors must report the date of first delinquency even if the debt is sold multiple times. The illegal practice of “resetting or re-aging” debts causes older debts to appear more recent and stay on your credit report longer. 

You won’t know if your debts have been reset or re-aged unless you check your three credit reports (TransUnion, Equifax and Experian) so please visit to obtain a free copy of your credit report. Resetting or re-aging debts is a serious violation of the Fair Credit Reporting Act, the Fair Debt Collection Practices and the Florida Consumer Collection Practices Act and can cause serious damage to your credit score. If you discover that a collection agency or creditor has reset or re-aged your delinquent accounts dispute it and take legal action if necessary.

This information is provided by Miami bankruptcy lawyer Alonso, Perez & Santos, LLP.  Our areas of practice include bankruptcy, debt harassment, credit card defense, foreclosure defense, immigration law, insurance litigation, business start-ups, and more.  Call 305-676-7545 to speak with one of our attorneys and receive a free consultation.  We look forward to working with you.

This information is provided for educational or informational purposes only and should not be construed as legal advice. The information is not provided in the course of an attorney-client relationship and is not intended to substitute for legal advice.