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When a creditor gives-up on the idea that you will ever get back on the contracted payment schedule or make a settlement payoff for an unsecured debt (and this also is the point at which they decide to remove that contract from their accounting system as a "performing" contract), then they directly inform the credit report bureaus that your account has been CHARGED-OFF AS BAD DEBT. This status is significantly worse than being reported as 90 days behind on the payment schedule.
To report bad debts you can sign up for a service (do a search for "Reporting Bad Credit") and you can find many agencies that for a small fee will allow you to report debts to the credit reporting agencies. I will not list any here as that may be perceived as endorsing one over another which wouldn't be fair. If you are a large entity with more than 500 accounts, and have the ability to transmit in the correct format, you can sign up to report directly with the big 3 credit reporting agencies.
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Is a bad debt erased after 7 years?
No it is NOT! You have to get your credit report to see when the creditor last updated their report to the credit reporting agency. If the creditor chooses to report this bad debt every month than your bad debt will only be erased from the last update. For example: You have a bad debt from a Sears credit card from Jan of 2010. Each month Sears has reported your bad debt to Trans Union or one of the other agencies. The new date is from the last time they updated your credit report NOT from Jan of 2010. They can update it every month for the next 20 years and it will stay as a bad debt and ruin your credit report score. Legal to do it too.
How do you calculate the Bad Debt Expense on the income statement report?
credit the account receivable and debit the bad debt expense.
What does a charge off with a zero balance mean?
A charge off with a zero balance means that a creditor has written off your account as a bad debt. This will show up as a negative mark on your credit report.
How long will bad credit card debt stay on credit reports in Ohio?
In the majority of situations, bad credit items are supposed to fall off your credit report after 7 years, HOWEVER, this doesn't always happen. After the fall of date has passed, it is best to get a copy of your credit report to insure that negative items have been removed. Know your rights and get a Free Copy of Your Credit Report from the credit bureau
Do you credit allowance for bad debt and debit bad debt expense?
you smell
Is a bad debt erased after 7 years?
No it is NOT! You have to get your credit report to see when the creditor last updated their report to the credit reporting agency. If the creditor chooses to report this bad debt every month than your bad debt will only be erased from the last update. For example: You have a bad debt from a Sears credit card from Jan of 2010. Each month Sears has reported your bad debt to Trans Union or one of the other agencies. The new date is from the last time they updated your credit report NOT from Jan of 2010. They can update it every month for the next 20 years and it will stay as a bad debt and ruin your credit report score. Legal to do it too.
How do you calculate the Bad Debt Expense on the income statement report?
credit the account receivable and debit the bad debt expense.
How long is bad credit on credit report?
7 to 11 years depending on debt to earning ratio
Is settlement good or bad on credit report?
Debt settlement is good for your credit rating. Just settle the debt and move on. Do not use a debt settlement company, ever.
Is debt settlement bad on your credit report?
Debt settlement will have some bad effect on your credit. When a debt is settled for less than its full value, the creditor will note that on your credit report. The damage is much less than you'd experience with bankruptcy or default, and in most cases your credit will improve within a couple of years.
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.
How are you affected by your 3 credit report scores?
The report scores show how well you handle credit. Such as paying back the debt owed or handling of bank accounts. If you have bad credit you may not be able to get loans or open certain bank accounts, or have a large credit card amount.
How do you reverse a bad credit history after you paid a debt?
You can write the three credit reporting agencies and report the debt as paid. Usually, the debt holder will write them for you, but you should check that this has been done.
What is a bad credit report?
A report about your credit that is bad.
Does credit card consolidation show up on my credit report?
Yes, credit card consolidation will affect your credit score. It will show on your credit report for at least five years, it doesn't hurt as bad as bankruptcy however.
Can an unpaid hospital bill show up on your credit report before you establish credit?
YES! You don't have to have credit established before something bad goes on there. Anything, good or bad, that has to do with credit will show up.
What does a charge off with a zero balance mean?
A charge off with a zero balance means that a creditor has written off your account as a bad debt. This will show up as a negative mark on your credit report.
