0
Are you responsible for paying credit card debt after it was charged off and the account sold and what is the law on this?
Wiki User
∙ 12y ago
Absolutely. "Charge off" is a term used by the original creditor when removing the account from their books and listing it as a loss for taxation purposes. In most cases the account is sold for pennies on the dollar, to a third party agency who will pursue colletion of the debt. The begining procedure is telephone and mail contact in an attempt to set up payment arrangements or payment in full. Some colletors will offer to settle for a percentage rather than the entire account balance. If satisfactory arrangements for repayment cannot be made, the agency may refer the account to a collection attorney. The attorney can then file a lawsuit and proceed through due process of the court to collect the money owed. Macky
Wiki User
∙ 19y ago
Wiki User
∙ 12y agoYes, you are still liable on the debt. Unless the debt is beyond the statute of limitations (which varies by state) or it is discharged in bankruptcy, you are likely to be liable on the debt. If the debt is forgiven/cancelled (you would then not be liable) then you will likely receive a 1099-C in the mail and it may be taxable income. Consult with a tax professional if that is the situation.
Add your answer:
Earn +20 pts
If a credit card holder dies who will be responsible for paying debts on cards?
If the cardholder has an estate, the credit card company can pursue that. In practice they don't really do that. If the account is a joint account, the other account holder becomes wholly responsible for the debt. Otherwise the bank eats the money.
What happens to a joint credit card when one account holder dies?
Both owners of a joint credit card are equally responsible for paying off the balance on the card. When one dies the survivor is responsible for the full balance.
Is a debit card the same thing as a being in dedts?
Not necessarily because when you make a purchase, the amount will be charged to your bank account. Therefore, in effect you are paying in cash and not on credit.
If a parent has a credit card debt appearing on a credit report and the child had a CC under the parent is the child responsible for paying for this debt as well?
Children can not be held liable or responsible for contracts of any type and also do not have any ability to get credit or have a credit rating. That is why their CC is in your name and why only you are responsible for paying their CC debt. All that is impacted here is your credit.AnswerIf the "child" is over the age of 18 and is a joint account holder and not simply an authorized user then they are responsible for the debt. Additional InformationIf the parent co-signed for the child's first credit card and now the child is emancipated. That account should be closedand a new account should be opened in the child's name alone. That is the only way to get the parent's name off the account.
Will paying an old closed account raise credit more than paying an old open one?
== == There is no difference in credit score increase if you pay a close or open account off. Paying an account is always a good idea, and eventually it will increase your score.
Will a credit card company accept a personal check from you if you are paying off someone else's account?
Absolutely. I have been paying off my boyfriends account for 2 years now and as long as I put the account number on there, they don't care who it is from, as long as they get their money. * In addition, a person who makes payments on someone else's credit card account is not legally bound to continue to do so nor are they responsible for the debt itself.
What would constitute a responsible use of credit?
A responsible use of credit is paying off your credit cards each month. Another example of using credit responsibly is using it when you need it only.
Can you repossess a vehicle if it's been charged off on your credit?
Just because the company charged off the account, does not mean that they don't want to be paid...so if the car is still assessible...they can repo it. Charged off on your credit means that it is no longer an active paying account..the company took a loss for that amount. A different department, "Profit & Loss" will take over trying to collect any way possible. Sorry.
When paying on credit is that classified as accounts payable or receivable?
account payable
What is the usual action of credit card company's toward nonpaying creditors?
Well after 6 years of not paying a dime to household bank the account has been charged off and the collection company is sueing me.
What do you need to get a credit account with Les Schwab Tires?
Good credit And A record of paying bills on time.
Is paying the minimal on credit cards considered a sign of credit trouble?
Paying the minimum amount due on credit card is not necessarily a sign of credit trouble because it actually makes the credit card account current.
