Yes. If a lender, a debt collector, or a debt buyer files a legal action against you for unpaid debt, it will damage your credit score. This information will remain on your credit report for a period of 7 years; the underlying debt can be on a report for 10 years also. .nnBeing in debt can negatively impact your credit in a number of ways. In some cases, the best way to get out of debt and to start to rebuild your credit is by filing for bankruptcy. Contact the Law Office of Richard D. Granvold to learn more about how we can help.