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Yes, A charge off simply indicates that the debt has been written off the creditor's account as uncollectible. The debt can then be sold to a collection agency for pennies on the dollar. The 'buyer" of the debt will then pursue collection action by whatever means is allowed by the laws of the state where the debtor resides. Such action would be phone calls, letters and in many instances a civil suit for the debt owed.

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โˆ™ 2011-04-19 17:54:02
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Q: Can debt collectors collect on a debt after it has be charged off?
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Can you be sued after a bill was charged off on your credit record?

Yes, a 'charge off' does not invalidate the debt nor the legal rights of the creditor to collect that debt.

If banks writes off loan can they collect in Maryland?

Charged off accounts can still be sold to third-party debt collectors for collection. Nothing precludes them from attempting to collect on a charged off account. The collection agency that is contacting you would have to be licensed in the State of Maryland to conduct business. You can obtain licensing information on the Maryland Commissioner of Financial Regulation website.

Can a credit card company still continue to charge interest if the debt has been charged off?

Yes, a "charge off" does not indicate that the debt is no longer valid. The creditor has several options on how to collect monies owed after the account has been charged off.

If you pay taxes on a charged off account can a debt collector still collect that account?

If a 1099-C form was received then you are required to pay taxes on the amount shown. This is done when a debt is considered cancelled. A cancelled debt cannot be pursued for collection. ALthough there is no guarantee that unethical collectors wouldn't make an attempt to do so.

Can a collection agency put a lien on your house because of a charge off?

Yes. A charge off simply charges off the debt with the original creditor but just because it is charged off the creditor still can take action to collect on the debt.

Can a debt buyer collect on a two-year-old car repossession that has been charged off?

Yes. The term "charge off" does not mean the debt is not valid and subject to collection procedures, including the possibility of a lawsuit.

Can collection agency put lien on home in attempt to collect a charged off debt?

If they obtain a judgment against you, some state's houses are protected

Does a bad debt have to come off your credit report regardless of last activityafter seven years?

Debt that is charged off plus 180 days can be removed after seven years but a creditor may be able to collect on the debt up to 10 years [depending on state SOL]

Can a debt collector in the state of Michigan collect on a debt if they have already charged it off?

Yes, the term is used to indicate a debt being written off as uncollectible by the original creditor. The debt however remains valid and subject to collection by a collection agency working for the original creditor or a third party that buys the account.

If you pay on charged off accounts are you throwing money away since no one is trying to collect on them?

Just because an account is charge-off does NOT mean the debt is not being collected upon or that the debt is expunged. Charge-off accounts are often sold to collectin agencies or junk debt buyers who will subsequently try to collect on it. Paying a charged-off debt will not help your credit scores. A status of 'paid charge-off' or 'paid collection' is still a negative. A mortgage lender may look more favorably upon accounts like these, but paying won't remove the tradelines or increase your scores.

If a creditor has written off your debt can a collection agency then come after you for the amount?

If the debt has been cancelled, no; if the debt has been charged off, yes.

Why does a business written off debt as bad?

When a business has debt to collect, it is listed as accounts receivable on their books. This is considered as asset. When it becomes clear that the business cannot collect the debt, it must be written off as bad debt. This is done to remove it from the AR listing.

What happens when a Bank loan is charged off?

It will show on your credit report where your bank loan was "Charged Off". This means the bank wrote off the money and gave up on collecting it. However they can sell that debt to a collection agency to try and collect it. It will show on your credit report for 7 years.

Can a collection agency sue for a 'charged off' debt?

Yes, the term "charge off" does not render the debt invalid or uncollectible.

Should you file bankruptcy if most of your debt has been charged off?

Filing bankruptcyI may be wrong on this, but my understanding is that "charged off" simply means the creditor has written the debt off (as in written it off as a loss on their taxes, or turned it into their insurance company as a bad debt, etc.) but in no way affects the collectability of the debt. I suspect if they later collect on a charged off debt, they have to claim the money they receive as income on their taxes since they wrote it off earlier. I may be wrong about this though... I definitely don't think that "charged off" means "forgiven," though. Please note that nothing in this posting or in any other posting constitutes legal advice; this is simply my understanding of the facts, which I do not warrant, and I am not suggesting any course of action or inaction to any person.

Do you own your car if it is charged off?

No. The term "charge off" simply indicates that the creditor has decided to pursue other methods of collecting the debt owed. That could mean the debt will be sold to another party, the creditor could file a civil suit to collect the debt or other actions. Debts that are "charged off" remain valid and subject to collection unless they have been rendered invalid by the statute of limitations as determined under the laws of the debtor's state.

After a debt has been charged off can a third party start collection on the debt 2 years after the debt was charged off?

Yes, because all that charged off debt is just charged off by the original lender, not for the entire world. They will sell it for some amount of money to collections agencies in orde to get something and write off the balance of the debt on their taxes as a loss which you have to in turn enter charged off debt as income unless you pay it back. The collection agency starts the process all over and the seven years starts all over too, to infinity and beyond...It never goes away unless it is legally disccharged off through cp 13 or 7 bankruptcy unless is a student loan, federal IRS debt, child support, judgment, etc...

If you have a charged off debt past 7 years can a new company get a collection company to collect the debt?

I don't know what state you reside in, or how the debt is classified However, it seems possible that the SOL has expired. Write the company and ask for a confirmation of the debt. Don't do anything until you receive it, and check the SOL in state pertaining to the type of debt you have.

Can a creditor that has charged off a debt continue to collect and put a lien on real property?

Yes, if the creditor sues the debtor and is awarded a judgment, the judgment can be executed as a lien against real property owned by the debtor. A "charge off" does not mean a debt is not valid nor subject to collection.

Can you be sued for a charged off credit debt by the original creditor?


How long does a third party collection agency have to collect on a debt after the debt is charged off by the original creditor?

There is no time limit placed on their collection efforts to collect a debt. However, there is a SOL for legal recourse and for how long it can report on your credit reports. Reporting time is 7 years and so far as the SOL for legal recourse you would have to check your state laws to see how long.

If your bank account says EFT Charged Off does this mean that the account is closed?

If an account is charged off it is automatically closed. It is listed as uncollectable debt.

How do you know if your debt was charged off and if so does that mean you don't owe anything and then your credit can begin to improve again?

A charge off does not relieve you of the debt. It is a term that banks use to clear defaulted accounts off of the books. As a general rule, the account is sold to a third party. That agency will continue efforts to collect the debt. The charge off/debt will stay on your credit report for seven years. The state you live in is only relevant if any legal action such as a lawsuit is taken.

If a debt has been written off as bad debt on taxescan a creditor seek payment after they have written it off?

Yes. "Writing off" debts to bad debt is a bit of accounting legerdemain, and not a legal waiver. Typically, original creditors only sell debt or sell the right and power to collect on debt after they have written it off.

How long must a debt be in default to be legally charged off?


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