for collection to a third party for full value ot at all
2006-08-31 12:31:59 · 6 answers · asked by Ralph B 1 in Business & Finance ➔ Other - Business & Finance
Yes. Charging it off is just a bookeeping concept. When they sell that debt they record it as income and offset it against the loss they took in charging it off. Charging it off is just a way to get bad debt off their books to improve the bottom line. It doesn't mean that you no longer owe that money.
2006-08-31 12:38:12 · answer #1 · answered by Anonymous · 0⤊ 1⤋
Yes.
They may file a bad debt and then collect it at a later date. They may also pursue collection in any legal way they desire, including selling it to a third party.
Once they collect the debt they must report it as income.
For further reference search for "Uniform Commercial Code"
2006-08-31 12:37:35 · answer #2 · answered by Lee S 3 · 0⤊ 0⤋
Your charged off debts might desire to have been secure on your financial ruin lawsuits....you may desire to recommend the lawyer and series companies of your financial ruin with the form and case variety, the place it became filed, etc. while you're in financial ruin 7, that would desire to be sufficient; financial ruin 13, you may desire to nonetheless have some form of criminal accountability...yet you may desire to communicate to your unique lawyer (who filed financial ruin for you). verify your copies of the papers, with a bit of luck it is going to record the three debts in them; in the event that they don't look to be secure, then think ofyou've have been given a difficulty.....Your credit checklist would be undesirable no count what, so in simple terms attempt to stay out of debt, do not open from now on credit enjoying cards, and stay on your budget...its confusing (i understand, on condition that's what i'm doing) yet possible! stable good fortune.
2016-11-23 16:48:01 · answer #3 · answered by ? 4 · 0⤊ 0⤋
Best left to a CPA or tax attorney. Charging it off and selling it looks like having your cake and eating it. I doubt the IRS would be pleased.
2006-08-31 12:37:59 · answer #4 · answered by williegod 6 · 0⤊ 1⤋
I don't see why not. They write it off for tax purposes this year, then sell it for collection next year and record a taxable gain...
2006-08-31 12:37:18 · answer #5 · answered by NC 7 · 0⤊ 1⤋
Contact your local Better Business Bureau and maybe they can help. Each state has different laws in this area so what works in Texas may not work in Indiana, etc.
2006-08-31 12:38:08 · answer #6 · answered by Proud to be an American 4 · 0⤊ 1⤋