2006-11-23 22:38:00 · 9 answers · asked by ami w 1 in Business & Finance ➔ Personal Finance
First of all you seem to have the wrong impression of what a written off debt is.
The fact that a debt is written off / charged off / charged to loss reserve --does not FORGIVE the debt.
The debt is still owed and all avenues of collection are still available to the lender.
What constitutes when a debt is written off can vary from one instituion to another. Most guidelines of "when" are in the terms of the contract your lender has with whomever they borrow their money from.
Generally - that term seems to be that if a payment is not made within the last 180 days (6 months) the lender will charge the balance off (write it off).
Lenders can borrow money based on a percentage of the balances owed to them that are in good standing.
Hence - when the account becomes doubtful - it is charged off which removes that amount from their general outstanding - and removes it from the total their borrowing percentage is based on.
Again, this does NOT release any collection actions at all. And full collection is still owed and can be collected in any legal means available.
2006-11-24 01:03:10 · answer #1 · answered by chey_one 3 · 1⤊ 0⤋
It might depend upon the company passing the debt over. Searching for more than a year can cost more than the debt is worth. They are very good at searching though.
If you want to know anything about debt options then read some of the articles at http://www.hammocksurvivalguide.com/
A lot of them are written by people with experience. Try looking at debt consolidation, debt relief and credit. Maybe a few others.
2006-11-27 09:10:39 · answer #2 · answered by Anonymous · 0⤊ 0⤋
No, the time limitation on action may depend on your state of residence but none I know of are just one year. 5-7 years is much more common.
Do not trust our advice on something as important as this. Go to your local legal aid office and ask a professional for advice.
2006-11-23 23:13:42 · answer #3 · answered by Michael Myklin 3 · 1⤊ 0⤋
No, some choose to write you off after a year, depending on the amount you owe, but they can leave it open for ever if they want to carry the amount owed over in their general ledger books year, after year, after year.....
2006-11-23 22:47:06 · answer #4 · answered by BIZ Z 3 · 0⤊ 0⤋
cheyone is right. And dont forget that a charge off is much worse on your credit than being late & making payments.
2006-11-24 02:03:13 · answer #5 · answered by ricks 5 · 0⤊ 0⤋
I thot it was 7 yrs
2006-11-23 22:58:47 · answer #6 · answered by Anonymous · 0⤊ 0⤋
All they have to do is look in your credit file,they know where you are.And they are coming to get you ,they want their money.
2006-11-24 01:19:14 · answer #7 · answered by Anonymous · 0⤊ 0⤋
no i dont think so
2006-11-24 01:59:06 · answer #8 · answered by Mr. X 1 · 0⤊ 0⤋
No.
2006-11-24 06:32:29 · answer #9 · answered by Anonymous · 0⤊ 1⤋