Understanding Debt After 7 Years of Non-Payment in India

Learn what happens to unpaid debt in India after 7 years and how it affects your credit score.

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After 7 years of not paying debt in India, the debt itself does not disappear, but it may become time-barred under the Limitation Act, 1963. This means creditors cannot legally enforce repayment through the courts. However, unpaid debts can still negatively affect your credit score and may result in continuous collection efforts.

FAQs & Answers

  1. What does time-barred debt mean? Time-barred debt refers to debts that cannot be legally enforced due to the expiration of the time limit set forth in the Limitation Act.
  2. Can creditors still contact me after 7 years of non-payment? Yes, creditors can still contact you for repayment even after 7 years, but they cannot take legal action to enforce repayment.
  3. How does unpaid debt affect my credit score? Unpaid debt can significantly lower your credit score, making it difficult to secure loans or credit in the future.

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For more insights on managing debt and understanding your credit score, check out our related content on debt management strategies and the impact of credit score on financial health.

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