2006-10-04 10:44:35 · 7 answers · asked by Anonymous in Business & Finance ➔ Credit
It means you defaulted on the loan, and the note holder felt that it would be more costly to try to collect it from you then to write it off as a loss! Note holder looses money, you get a bad mark on your credit report!
2006-10-04 11:01:32 · answer #1 · answered by Anarchy99 7 · 0⤊ 0⤋
You borrowed money for a car. You didn't repay the loan. The lender repossessed the car and sold it. The sale amount did not equal the loan balance and the difference is called a "deficiency balance." You owe it. Lender moved your bad debt to a category called "charge offs" and reported the deficiency balance to the IRS, as income to you. (You got money... you didn't pay it back = income.) IRS will expect to see that amount on your income tax return as "miscellaneous income."
The lender might keep your bad debt on their books or they might sell or consign it to a collections agency. It will stay on your credit report for 7 years from the date of the last activity on the account (not from the date of the loan or the date of the repossession).
Call your lender. Offer to settle for an amount a little less than the debt. If they agree, get it in writing. Keep your end of the bargain and pay it off. If they won't accept anything less than the full amount, pay it off anyway.
Take better care of your credit rating.
2006-10-04 14:00:00 · answer #2 · answered by paleblueshoe 4 · 0⤊ 0⤋
charge off means the account has been written off as a loss. which means you defaulted on your account by not paying the balance and they have reported as a loss. in your case, your car must've been repossessed and the balance that you owed has been charged off. this will be on your credit for 7 years as a negative rating. the creditor will then either sell the account to a collection company or just write the whole amount as a loss and get reimbursed either by you, or by the irs as they reported as a loss to them.
2006-10-04 12:01:24 · answer #3 · answered by sung_paul 2 · 0⤊ 0⤋
It means that they don't think you will ever pay so they've given up and sold your debt to a collection agency. You should prepare for lots of phone calls and a form at tax time which will require you to pay income taxes on the charged off amount.
You need to arrange to pay your debt.
Good luck!
2006-10-04 10:48:34 · answer #4 · answered by personal_finance_101 3 · 0⤊ 0⤋
It means you still own the money, but the creditor doesn't expect to get paid. If they haven't already repossessed the car, they will soon.
2006-10-04 12:02:10 · answer #5 · answered by STEVEN F 7 · 0⤊ 0⤋
Do you mean paid off? It means you don't owe any more. It is yours. Pick up the title where you were paying.
2006-10-04 10:48:26 · answer #6 · answered by Just Bein' Me 6 · 0⤊ 2⤋
i dunno know
2006-10-04 10:51:45 · answer #7 · answered by Chelsie W 2 · 0⤊ 1⤋