charge-off and write-off
Date: Tue, 09/11/2007 - 04:47
I found you by surfing one company who checked on my report.
How ignorant I am!
I even do not know what exactly charge-off and write-off are,
and the processes or steps creditors will take to report the credit bureaus.
When an account has been delinquent anywhere from 90-180 days, i
When an account has been delinquent anywhere from 90-180 days, it will be considered "bad debt". The creditor deems that the liklihood of collecting the debt is slim. A chargeoff/writeoff just means that the creditor has performed an accounting measure to "get it off their books" as an asset.
See these 2 links for in-depth description:
http://www.debtconsolidationcare.com/settlement/accounting-term.html
http://www.debtconsolidationcare.com/settlement/chargedoffdebt.html
Charged-off doesn't mean you don't owe the balance anymore. A creditor can still try to collect a charged-off balance -- they might send the account to a collection agency to collect for them.
Most likely, the account will be sold to another party. Whoever buys your account will also be able to collect on it, and they may sue for the balance.
