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Credit Card charge offs

Date: Thu, 04/17/2008 - 21:51

Submitted by anonymous
on Thu, 04/17/2008 - 21:51

Posts: 202330 Credits: [Donate]

Total Replies: 4


Does anyone know what happens when the Cardit card company charges off your debt. I owe Capitol one, 1700.00, 1600.00 and 800.00. They got tha high from all their fees and late payment, over limit charges. They have all been turned over to collection, I get so many calls we stopped answering any 800 numbers. i also have a credit card to HSBC for 1800.00 and one other card which I owe 17,000 on, but that one is not in collections and I have agreed to pay them if they lower the interest to 6% and lower my payments to $200.00.
I just don't know what they do with charged off loans, will they take me to court, or get a judgement against me or garnish my wages?


I'm somewhat confused with your problem. I guess you have confused between the words charged off and settled. Let me put the problem in my own words, do correct me if I go wrong.

Few of your accounts are in collection. So, now you have to deal with the CAs.

You have proposed HSBC to settle the account at a lower amount. Hence, its a settled account and not charged-off.

The credit card company can declare an account as charged-off when a certain time limit passes by after the due date, say around five to six months. However, different companies follow their own process regarding declaring an account as charged-off.

The creditor can file a lawsuit against you after declaring the account as charged-off, and can also garnish your wage, but for that they need to obtain a judgment against you.


lrhall41

Submitted by on Thu, 04/17/2008 - 23:42

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I had an account get charged off and saw really no change. CA started calling and the interest was still added on to the account. I was able to negotiate with the CA for less then 50% of what I owed but was assured that if I did not pay the interest would still keep adding on. If you have any money saved up I would send out a DV letter to the CA and when they have validated send them an offer letter for an amount you can afford.


lrhall41

Submitted by mommontoya on Thu, 04/17/2008 - 23:49

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A charge off is a bad debt. It can reflect on your credit report for however long your state allows. Depending also on your state laws you can be charged a continued interest rate. You can also be taken to court as long as the debts are within the SoL for your state where a judgement could be granted against you and wage garnishment could be granted if your state allows. Usually you will be granted a payment plan and if you are unable to uphold that garnishment will follow (if allowed in your state).


lrhall41

Submitted by FYI on Fri, 04/18/2008 - 05:26

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If you live in Florida, even if you don't pay, they will not be able to put a lien on your house (if it's on property that is 1/2 acre or less) or garnish your salary if you are the head of the house.

I believe Texas and Florida are two states where they just can't come and garnish salaries and take your house. If you live in other states though, you should be careful. I believe a few other states have homestead exemptions and you should check and see. Florida is a great place to live if your in debt.


lrhall41

Submitted by on Sun, 11/16/2008 - 00:18

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