Does the statute of limitations on a debt starts from the date of last activity or from the charge off date?
Statute of Limiations does NOT mean the debt can't be collected
or is no longer due. It simply means that they cannot use the
courts to get a judgment to collect it.
The charging or writing off of a debt is only a required
accounting entry by the creditor.
It does not effect you, or change the amount you owe, or that
you owe it.
It does not change any of the legal methods to force collection
that were available before making the entry.
It does not change any of the creditors rights, or change your
obligation in it. The debt is NOT forgiven.
All it does is make the creditors accounting statement recognize
that an asset (your receivable) that it expected to realize, and
already recorded as income, is not going to happen. they are taking
the charge to their books for the expense of your not paying, or
that it is now considered unlikely you will ay, and the asset does
not exist (or in bank terms, is no longer productive).
When the charge off occurs depends on many things in accounting
parlance...most companies actually establish an account for
expected bad debts (an accrual) as a current charge against sales,
(expecting some to go bad), and adjust that account on
experience...without having to do much on any particular