Best Answer

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.

User Avatar

Wiki User

โˆ™ 2009-05-15 04:08:45
This answer is:
User Avatar
Study guides


23 cards

What can a creditor do if you are in default on a credit card

What do you do when your application for credit is rejected

How can you get a loan with 470 credit score

Monique's previous credit card balance is 199.26 and she has a monthly finance charge of 1.5 How much will the credit card company assess in finance charges on this balance

See all cards
6 Reviews

Add your answer:

Earn +20 pts
Q: If your credit report shows an account as closed or charged off can the bank or someone that has purchased the debt still collect on the account?
Write your answer...
Still have questions?
magnify glass
Related questions

What happens when you cash a check someone wrote but they don't have money in they account?

The check rebounds on the sender... And their account gets charged.

What are bills payable?

That is money you owe someone for services rendered or goods purchased on account.

When you have an account charged off why can someone else buy out this account and have it start all over again?

The simple answer is because it is perfectly legal. Creditors sell defaulted accounts to third party collectors for literally pennies on the dollar. They can then collect the full amount plus interest and penalties until the account is in some way settled or paid in full.

Can your checking account still be charged after you close it?

No. once an account is closed, it ceases to exist. It is no longer a valid account that can be used for transactions. So if someone wants to charge you for anything, they cannot use this bank account. Even the bank cannot charge anything on that account.

How long does a creditor have to go after someone to collect a medical bill in Ohio?

I believe in Ohio a medical creditor can attempt to collect a bill for 7 years. However, they can hold onto the account as long as they decide.

What is a managed forex account?

A managed forex account is one in which someone with financial expertise (a financial planner or manager) trades stocks for an individual so that they do not have to do it themselves. A fee is charged for this service.

What does 'Transferred Account charged off' mean?

It means the original creditor has given up the account and sold it to a collection agency. It does not mean the debtor is relieved of the debt. Someone wants the money and they will get it, somehow.

Are mionors charged as adult in Sweden for murder?

If someone is 18 or older they are charged as adults. Someone that is younger then 18 can't be charged as adult.

Can someone give you a good account on dragonfable?

If someone is willing to give their account away, then yes, someone can give you their account.

How do you collect owed money from someone?

how do i collect money owed to me from someone in canada

What to do if someone passes you a check on a closed account?

If they passed the check to you in payment AND they KNEW the account was no good they committed "fraud." You should report it to the police, they can be charged with passing bad checks (or whatever the law of your state call it).

How can someone be charged with murder?

You can be charged with murder if there is evidence that you have committed murder - you dont necessarily have to have killed someone - you may be framed. Also, say you are robbing someone and someone is killed in the process, you may be charged with felony murder in it blood?

People also asked