Why bad debt shows up more than once on credit report?

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Why bad debt shows up more than once on credit report?
Different organizations can report bad debt more than once on your credit report. When a creditor writes off a debt and sells the obligation to a collection agency, all the payment history with that particular creditor will remain on your credit report. At times, the collection agency is unable to recover the money successfully. In such cases, they will report your non payment as well. When the creditor charges off the debt does not remove your personal obligation to repay the debt. In this case, the creditor is just classifying the debt as a non performing asset.
The good news is after seven years from the first negative listing, all the entries concerning payment history will be removed from your credit report. The collection agency information is also removed.
However there are a couple of exceptions to this seven year de-listing of negative informatio: either you file for bankruptcy or the creditor wins a judgement against you. Let's consider each of this case in more detail. Bankruptcy will appear on your credit history for seven years with a Chaper 13 bankruptcy and ten years with a Chapter 7 bankruptcy. Accounts that have been included in the bankruptcy petition will also be reported for seven to ten years from the time the petition is filed.
Coming back to our earlier case, if the collection agency sues you and wins a judgement for non-payment of the debt, the judgement will stay on your credit report for seven years from the date the judgement was filed. Collection agencies that have not received payment will often threaten to sue just prior to the initial seven year period even though debt may not be enforceable based on the applicable statute of limitations on the debt.
An assurance to repay, partial payment or a regular payment on your part can restart the statute of limitations. It is critically important to consult with an attorney before responding to a creditor's threat to sue for payment.

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