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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?

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Wiki User
2009-05-15 04:08:45

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.


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