it was a loan at our bank we had made arrangements to pay $300 a month until it was payed and we got a month behind so I went in and talked to them they acted as if it was no big deal and said we could pay as much or as little as we wanted on it.
2006-10-31 13:23:49 · 7 answers · asked by JeNe 4 in Business & Finance ➔ Credit
Charge-Off is an accounting term. It means the money is no longer reported as an asset on the companies balance sheet because the likelihood of collections is low. It has nothing to do with you duty to repay the debt. If you are delinquent for a certain amount of time, the statue of limitation prevents them from taking legal action (suing you) to collect. If you agreed in writing to pay $300 a month, as of that time, you are not delinquent. The statute of limitations would restart when you became delinquent again. That happened when you missed the first $300 payment. Even if you remain delinquent and the statute of limitations expires, you still owe the money, They just have no enforceable way to collect.
2006-10-31 13:42:13 · answer #1 · answered by STEVEN F 7 · 0⤊ 0⤋
Please ignore the previous answers. The correct educated answer is:
A charge of means that the original creditor believes the debt is "uncollectible" and no longer wishes to pay taxes on the debt as an asset for the company so the creditor now receives a tax break and gives up the right to continue collection efforts.
The typical step for this debt will be to be sold to a collection agency which in turn will attept to collect the debt.
This process may be repeated.
Just because the debt is charged off, does not mean it will go away, nor does it mean that you no longer owe it.
There is a new breed of debt collectors called junk debt buyers that will probably get their hands on it just when you think its supposed to fall off your credit reports. Here is a really outstanding article from Credit Assistance Network about junk debt buyers: http://www.expert-credit-advice.com/junk_debt.htm
You can also use the free credit repair kit to either settle or dispute the item you are refferring to by following this link:
http://www.expert-credit-advice.com/free_credit_repair.htm
Dont worry, it's free, you dont even to to provide a email address, there are like 20 different sample letters you can download.
They offer the full service, but based on your question I would just reccommend using the free kit to do it.
Hopefully this answer has helped you.
Good luck!
2006-10-31 21:46:34 · answer #2 · answered by Anonymous · 1⤊ 1⤋
It sounds like the bank has deemed you unwilling to pay. This could be really bad because you don't want them to report to the credit bureaus that you've defaulted on the loan. If I were you I'd go back to the bank and ask them if they've reported a default and or what you can do to get back on track.
2006-10-31 22:06:49 · answer #3 · answered by D. Young 2 · 0⤊ 0⤋
Depends on what state you live in.
For example, someone in North Carolina is not legally responsible to pay it off after 3 years.
Check the laws in your state. It could be more or less than 3, but after a certain amount of time, they can't come after you.
2006-10-31 21:29:13 · answer #4 · answered by ilovetiti 3 · 0⤊ 0⤋
if you have paid the bill in like 3 months usually it does get charged off and the orginally loaner will sell the debt and a collection company will start harassing you and they may come back and garnish your wages and even your tax return
2006-10-31 21:30:51 · answer #5 · answered by queen_sherri2005 2 · 0⤊ 0⤋
Charged off means they could not get you to pay it so they have sent it to another to waste their time calling and writing you.
2006-10-31 21:26:24 · answer #6 · answered by Valerie 6 · 0⤊ 0⤋
If it's charged off, then no you do not need to pay it.
It reflects better on your credit report though if you would go ahead and pay it off.
2006-10-31 21:32:32 · answer #7 · answered by Tonya C 2 · 0⤊ 1⤋