Charge off is an accounting term referring to entries made on the creditors accounting books. His accounting makes no difference to the debtor.
A charge off is an account that the creditor has decided not to collect on. When they are listed as a charge off, that does not mean anything to you except a ding on your credit report. You are still obligated to pay the debt. What usually happens is a third party debt collection agency will make arraingments with the original creditor to come after you. This can be a double dip on your credit report because the original creditor might list it and the debt collector might list it also.
This confuses two different concepts. A "charge off" is an accounting and tax term that means the creditor does not believe a debt is going to be repaid. It gives the lender a tax deduction. A discharge in bankruptcy is a permanent injunction against a creditor taking any action to collect a debt, including debt collection agencies or successors/purchasers of a discharged debt. Assuming the refi of the mortgage happens after discharge, nothing happens. If the refi happens while a c 7 or 13 is still pending, and lowers the mortgage payment, and has been approved by the bankruptcy court, it could affect how much you have to pay to the trustee.
Yes. A charge off simply charges off the debt with the original creditor but just because it is charged off the creditor still can take action to collect on the debt.
If the debt was discharged in the BK, no.
The phrase "charge-offs" is the announcement by a creditor that an amount of debt is unlikely to be collected. This process often develops when a consumer becomes severely delinquent on their debt.
Charge offs are accounts that have been written off by the creditor as uncollectable. The debt owed is still valid and can be collected on either by the original creditor or by a collection agency. You can only erase charge offs by disputing them to the credit bureaus or negotiating the removal by the original creditor.
No. If a creditor fails to file a proof of claim on a Ch 13, then they do not get paid and the debt gets discharged.
Yes. The debt remains valid and collectible by whatever means the creditor chooses to implement.
Yes, a 'charge off' does not invalidate the debt nor the legal rights of the creditor to collect that debt.
No ... you have the proof that the debt was settled.
The original creditor can charge the debtor for all fees associated with collection as well as interest. Credit card companies will usually negotiate with you for lowered debt.
Yes, you can be sued for the original debt, minus any money the creditor received during the 13 plan.
Your creditor added a negative entry (a charge-off) to your credit report and will continue to attempt to collect on the debt.
The charge off is the declaration by a creditor that an amount of debt is unlikely to be collected. The implication that it increases the consumer tax.
Yes, the designation "charge off" does not make the debt owed invalid or uncollectible in any context.
In most Chapter 7 cases you are not including secured property unless you are surrendering the property back to the creditor. If you are holding on to secured property during a chapter 7 process the property must be reaffirmed with the creditor at time of filing meaning you have an agreement with the creditor to leave the property out of the bankruptcy and continue to make your payments. When you discharge debt through chapter 7 it doesn't make sense that you could keep a secured piece of property and not pay for it. Maybe you were unclear about what you were really doing.
There is no set time for a creditor/lender to cancell a debt. Charge offs are generally done 180 days after the account becomes delinquent. A Charge off does not mean the debt is not still owed and collectible.
Only if interest is provided for in the instrument creating the debt. If the creditor tries to charge interest to which a debtor did not agree, then that constitutes usury and can, in some instances, wipe out the debt altogether. In some states, the creditor may be entitled to collection costs. ==Additional Information== If the debt collector is collecting on a money judgment rendered by a court post judgment interest accrues and can considerably increase the amount of the debt.
The creditor wil try to get the debt from the cosigner as well.
Yes, the charge off is entered by the original creditor, and the collection fee is a separate debt.
Yes. A debt repayment program other than a chapter 13 bankruptcy, does not confer legally binding terms on creditors to prevent them from seeking litigation. AN exception obviously would be if the creditor has signed an agreement agreeing not to file a lawsuit as long as the debt repayment obligation is met. It is however, very doubtful a creditor would agree to such.
Yes. A charge off does not cancel the debt, it is still valid and collectible by whatever means is available to the creditor, including but not limited to a lawsuit.
If it is not a secured debt it will be included in the bankruptcy discharge.
Depends- if it was a chapter 7, then the bank can sue the co-signer for the full amount. If it iwas a chapter 13, the creditor is prevented from taking any action against the co-signer for any consumer debt.