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"Write offs" sometimes called "charge offs" do not mean a debt is no longer valid and collectible. The term is used to allow the creditor to remove the account from normal prescribed collection action and tax procedures. "Write offs' generally indicate the defaulted account has been sent to or purchased by a collector who will continue collection action and may pursue a lawsuit to recover monies owed. A 1099C IRS form will be sent to the debtor when a debt is cancelled and collection will no longer be pursued. The total amount of the debt is taxable and the debtor is required to claim it as income on his tax return.
What else can I help you with?
Under UK law should you pay a debt that has been written off by a company?
If the debt has been written off, it no longer exists and therefore does not need to be paid.
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.
Can a car loan agent sue me for a debt that has been written off?
No, if it is written off that means the company has accepted the debt as paid.
If a debt has been written off as bad debt on taxescan a creditor seek payment after they have written it off?
Yes. "Writing off" debts to bad debt is a bit of accounting legerdemain, and not a legal waiver. Typically, original creditors only sell debt or sell the right and power to collect on debt after they have written it off.
Explain the procedure to be followed when a customer whose debt has to be previously been written off as a bad debt subsequently pays the amount originally owing?
Explain the procedure when a customers has been previously written off as a bad debt subsequently pays the amount originally owing .
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.
What should you do if a detective agency is chasing you regarding a debt you had seven years ago and how can you find out if the original lender has written this off?
please can you tell me if say after 5/7 years is your debt written off
What can happen to your debt after your car is repossessed?
Your debt is then written off as the car covers the cost of the debt.
What is difference between a charged off debt and written off debt?
In most cases there is none. Charge off and written off are terms that indicate the debt is being removed from normal account action and sent to collections. Only when a debt is "forgiven" by the original lender or collector is it considered no longer collectible.
Can debt collectors collect on a debt after it has be charged off?
Yes, A charge off simply indicates that the debt has been written off the creditor's account as uncollectible. The debt can then be sold to a collection agency for pennies on the dollar. The 'buyer" of the debt will then pursue collection action by whatever means is allowed by the laws of the state where the debtor resides. Such action would be phone calls, letters and in many instances a civil suit for the debt owed.
Why does a business written off debt as bad?
When a business has debt to collect, it is listed as accounts receivable on their books. This is considered as asset. When it becomes clear that the business cannot collect the debt, it must be written off as bad debt. This is done to remove it from the AR listing.
Should you file bankruptcy if most of your debt has been charged off?
Filing bankruptcyI may be wrong on this, but my understanding is that "charged off" simply means the creditor has written the debt off (as in written it off as a loss on their taxes, or turned it into their insurance company as a bad debt, etc.) but in no way affects the collectability of the debt. I suspect if they later collect on a charged off debt, they have to claim the money they receive as income on their taxes since they wrote it off earlier. I may be wrong about this though... I definitely don't think that "charged off" means "forgiven," though. Please note that nothing in this posting or in any other posting constitutes legal advice; this is simply my understanding of the facts, which I do not warrant, and I am not suggesting any course of action or inaction to any person.
