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A creditor will charge off your account based on their accounting standards. Some creditors may charge off an account if no payment has been received within a 90 day period. Some others may wait a year. Your problem will be, if a charged off account appears on your credit report you may pay a higher rate of interest when you go to purchase a car, or perhaps a home. Be aware that if the one you owe charges off - generally called "writes off" the debt, it means they accept that it is uncollectable and for accounting purposes it is a charge/cost and a loss of earnings or revenues. It does NOT mean the debt is forgiven, only that they accept it is worthless, or more rightfully worth less to collect than collecting it will cost. They may sell the right to collect it to another, generally a collection agency. So if they determine a debt of $100 is uncollectable, and they sell it to a another for say, $15, they only have to charge off (take a loss) for the $85 net (and any expenses so far incurred). the one who now onws it has the right to collect it and keep however much they do.
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How can you find out if a debt has been written off?
The term "written off" does not mean the debt has been cancelled/forgiven. The term indicates that the original creditor will no longer continue to collect the debt in the usual manner. The debtor will receive a notice from the original creditor of whatever further action will be taken with the account.
If a creditor has written off your debt can a collection agency then come after you for the amount?
If the debt has been cancelled, no; if the debt has been charged off, yes.
Are bad debts that are written off taxable or not?
"Written off" does not always (usually) mean a debt is not still collectible. The term "forgiven" indicates that the creditor no longer considers the debt valid. When a debt is forgiven the debtor will receive a 1099C from the creditor/collector and a copy is sent to the IRS.. The debt is then considered income and must be reported on the debtor's tax return as such.
Can a creditor keep reporting a charged off account?
That is perfectly legal. The term "charge off" does not mean that the debt is not still valid and fully collectible.
Can you still be sued if a credit card company charges off your account?
Yes, a charge off does not prevent a creditor or collector from filing a lawsuit against the debtor to recover debt owed. However, all states have statute of limitations that establish the time period in which a creditor may file a lawsuit.
If a creditor charges off a debt can they still go after you for repayment?
Yes, the designation "charge off" does not make the debt owed invalid or uncollectible in any context.
Can an account be in Charge Off Status if payments are behind but being made?
Yes, it can. Just because a creditor charges off your debt, does not mean that you don't still owe it. Before you pay on a charge off, make sure you get an agreement from the creditor to delete it from your credit report once it's paid!
How can you find out if a debt has been written off?
The term "written off" does not mean the debt has been cancelled/forgiven. The term indicates that the original creditor will no longer continue to collect the debt in the usual manner. The debtor will receive a notice from the original creditor of whatever further action will be taken with the account.
If a creditor has written off your debt can a collection agency then come after you for the amount?
If the debt has been cancelled, no; if the debt has been charged off, yes.
Are bad debts that are written off taxable or not?
"Written off" does not always (usually) mean a debt is not still collectible. The term "forgiven" indicates that the creditor no longer considers the debt valid. When a debt is forgiven the debtor will receive a 1099C from the creditor/collector and a copy is sent to the IRS.. The debt is then considered income and must be reported on the debtor's tax return as such.
Can a creditor keep reporting a charged off account?
That is perfectly legal. The term "charge off" does not mean that the debt is not still valid and fully collectible.
What does a charge off mean on my repo'd car?
Your creditor added a negative entry (a charge-off) to your credit report and will continue to attempt to collect on the debt.
What is a charge off on your credit?
A charge off is when a creditor basically gives up trying to collect the debt and "charges off" the debt from their books. They do this more for their benefit than the one who owes. It allows them to close out the file and clean up their records. This looks especially bad on a credit report.
If a debt on your credit report says 'bad debt write off ' can the creditor still sue you or collect the money?
= If your credit report reports that you have a bad debt write-off, then it means that the original creditor has written off the debt, but they can still sell the rights to the debt to a collection agency and they can contact you and take legal action.
Can a creditor that has charged off a debt continue to collect and put a lien on real property?
Yes, if the creditor sues the debtor and is awarded a judgment, the judgment can be executed as a lien against real property owned by the debtor. A "charge off" does not mean a debt is not valid nor subject to collection.
How long after a charge off can a creditor sue?
Charging off the debt has not impact on the creditor's ability to sue. Charging off is simply a write-off for tax purposes. A creditor can sue any time prior to the expiration of the statute of limitation regarding of whether or not the debt has been charged off. The applicable time deadline will vary from state to state and depending on the type of debt.
Can you be sued for a charged off credit debt by the original creditor?
Yes.
