charge out???

Date: Thu, 02/07/2008 - 11:51

Submitted by anonymous
on Thu, 02/07/2008 - 11:51

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Total Replies: 1

I have been going through superior debt for 2 cards. one bank of America and another capitol one. The capital one has been calling my work for the last couple months and I have been dodging the calls. nonetheless I talked to them today mainly to tell them not to call my job but the lady said I had to pay today or my account would charge out (i think is what she said). I asked her what that meant and she said it will show up as a r25 or something on my credit report which is the same as having a car repossessed or filing chapter 7. So my question is if they are going to charge out my account, am I still responsible for the balance?

When she mentioned getting a car repossessed it made me think that although it was going to hurt my credit that I'm done paying them. just like when a car is repossessed. I'm sure I'm wrong but I thought I'd check with you guys

A chargeoff is really just an accounting measure which means the

A chargeoff is really just an accounting measure which means they have discounted their overall receivables to account for your "bad debt." In other words, they're not counting it as an asset anymore.

However, it is still a legal balance, and they can still attempt to collect on it. Most credit card companies sell off their bad debt to junk debt buyers. If that's the case, you will most likely be contacted by a collection agency later on down the road after they buy your account.

(PS a repo doesn't mean you're done paying either -- in a repo, the creditor will sell the car and apply that money to the balance. But if there is still a balance left over, then the debtor is still responsible for it.)

lrhall41

Submitted by DebtCruncher on Thu, 02/07/2008 - 17:58

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