Write-off debt: What does it mean?
Date: Thu, 01/03/2008 - 06:18
Can anybody please explain the difference between write-off debts and debts being paid off. Today I received my credi report and I owe money to different credit cards and hey are in collecions now.
For 2 of the credit cards i was written as write-off and for the other one it was showing as paid off.
Thanks
Paid off is it has been paid in full. Write off means they had t
Paid off is it has been paid in full. Write off means they had taken it as a loss and charged/written it off, but you still owe it.
charge-off
Hi JCEMT,
Thank you for the clarification. What does charge-off mean? Is it same as write-off debt?
Thank you
Write off debt vs charged offs
Charge off is when they close the account and they may no longer charge late fees (however interest may still accrue) it is mandated that they must do so after 180 days of delinquency. The write off is where they report it to the IRS as a loss and is filed as if they had paid you that sum like an employee (of sorts) which you in turn have to pay taxes on.
Write-off debt
Even if the creditors write-off debt, it doesn't stop them from selling it to collection agencies. Hence, you may later on hear from collectors regarding the same debt. Often JDBs purchase these debts at very little cost and then start coercing the debtor over it.