I have many high dollar debts that I am being harrased by collection agencies for. But on my credit reports from all three bureaus show that several of the debts were written off by the creditor. But now I am getting harrassing phone calls every day from collection agencies for those same debts. I just need to know what direction to take next. Any help would be appreciated.
2007-01-11 10:45:13 · 7 answers · asked by Just Another Guy 1 in Business & Finance ➔ Credit
When a company writes off a debt they sell it for pennies on the dollar to collection agencies. These agencies now own the debt and have the right to collect.
2007-01-11 10:50:33 · answer #1 · answered by Barkley Hound 7 · 0⤊ 0⤋
Yes. What occurs is that the collection agency buys rights to the debt from the original company. You might not like it, but the collection agency is now the company you actually owe the debt to.
2007-01-11 18:50:01 · answer #2 · answered by Hank Hill 3 · 0⤊ 0⤋
The answer is YES.
When a company takes a "Charge Off" -It is an accounting transaction and is not "debt forgiveness". The contract is still enforceable under the law but the company takes the charge off as a loss on its books.
Bought a boat and took out loan and you owed (say) 60 payments of $1,000.00 per month, the company record an "Account Recievable" worth $60,000.00 with the boat as collateral.
If you made 10 payments and that the contract and then stopped, the balance of the contract would be $50,000.00. The company would be foolish to pretend that loan asset has full value so they would they would charge off the balance.
The company that had the loan would be worth less to investors and to the tax authorities, but the contract is still fully enforeable against you.
If the lender repoessed the boat and sold it for (say) $40,000.00, the lender would apply the sale proceeds to the $50,000.00 charge off which would leave a $10,000.00 deficiency balance.
You would owe them that balance and they could sue you in court for it. .
2007-01-11 19:02:46 · answer #3 · answered by ronco_hag_o_matic 1 · 0⤊ 0⤋
No. I'm thinking the company might have sold your debt to a collection agency.
2007-01-11 18:49:09 · answer #4 · answered by Anonymous · 0⤊ 0⤋
Yes they can. They have just sent the debt to a collections agency. I'd suggest you pay the debts, or if you are unable to, see a Trustee in Bankruptcy.
2007-01-12 13:20:34 · answer #5 · answered by CanadianBlondie 5 · 0⤊ 0⤋
"written off" means they were sent to collections. The wording is confusing, but it does NOT mean the debt was pardoned. If it was, it would NOT be on your credit report
2007-01-11 19:11:35 · answer #6 · answered by Together 4 · 0⤊ 0⤋
If they are from unsecured credit cards no you do not have to pay them. It will go against your credit but after four or five years you are not required to pay them at all. There is a statute of limitations however, it will screw up your credit.
2007-01-11 18:49:41 · answer #7 · answered by Anonymous · 0⤊ 0⤋