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 account.
Charge off is a shortened version of "charged off to profit and loss". This is an internal accounting term for activity creditors take on defaulted accounts. For a consumer's purposes charge off = collection account. This is a defaulted debt that shows as a derogatory account on your credit file.
no
No. Once an account has been in default for 180 days, the creditor by law must list it as a charge off.
A collection agency cannot charge-off an already charged-off account. The reporting of the STATUS of the account AS a charge-off can be reported every time they update with the credit bureaus. The 'date of status' must be the date of the ORIGINAL charge-off.
Yes, any charge off goes on.
Typically, you have to wait 7 years for the charge-off to come off your credit report. But, if the account is incorrect, incomplete, misleading, or unverifiable, it may be deleted much sooner.
it is automatic
The Fair Credit Reporting Act establishes a method by which derogatory information, like a charge off, can show on your credit report. This time period begins on the month/year you last paid the account on-time immediately prior to its' default. The account may show for 7 years from this date.
A bank can take money from another account in their bank to pay a charge off. They have to reveal this in paperwork with small print that you more than likely signed without knowing it. Check your bank's policy but bank's are tightly regulated and follow the law very closely.
The account will be reported as "settled in full / was charged off"
Usually 180 days after DLA. Be advised a charge off does not indicate that the debt is not valid and subject to collection procedures.
The term "charge off" is used when a company or creditor clears a persons account due to lack of payment at loss to the company. No further charges can be applied to the account.