3 Answers

The debt can be chased indefinitely and always remains owed.

They will chase you as long as they feel its a worthwhile chase. In some instances, they give up and sell collections to a collection agency, meaning they 'pass the buck'.  Then the collection agency will chase you because they have money invested in you, if they collect, they make a profit.

meanwhile, the original company that gave you the credit in good faith have turned you into the credit bureau and they formulate a 'credit score'.. If your score is bad, you will not get credit until you square this away.  You are constantly under surveillance with credit companies as they must report on all clients.  Some people think its cool to 'walk away' but you get stung in the end when you want to buy on credit again.  

In what country?