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If a creditor charged off the amount to profit and loss do you still list the creditor in Chapter 7?
Krisepooh
Yes. Their accounting, and charging it off is just a required accounting adjustment since they had already reported, and pay taxes etc on it when the "sale" (or financed transaction occured), and it was currently reflected as an accounts receivable...and asset. When it became clear you weren't going to pay, they had to reduce earnings, because (essentially) the sale never really happened.
You still owe the money. I'm sure the creditor would be happy to receive the income, and would then simply record it as such, again.
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∙ 11y ago
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Dont pay it and find out for sure.
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