Creditor showing debt is written off, how long will this stay on my credit report if I pay off or don't pay off.
2007-02-02 04:53:52 · 5 answers · asked by VAP 1 in Business & Finance ➔ Credit
It will stay on the report for 7 years after they stop trying to collect. If they continue to try to collect for 10 years, it will be on your report for 17 years. (this is an exaggeration, they would never try that long) a charge off means they deducted it for tax purposes as an investment loss. You will not have to pay taxes on this as some people think. As far as getting it off your credit report...it's all up to the lender, they can remove it completely or have it listed as 90 day's or more delinquent.
2007-02-02 05:08:47 · answer #1 · answered by Mike M. 5 · 0⤊ 1⤋
Yes, you still have to pay the debt. Even though it was sold to a collection agency, you are legally in breach of your contract with original creditor (whomever that may be).
This will stay on your report for 7 years from the date of last activity whether you pay it or not. If it does happen to run its course of 7 years and fall off your report, that doesn’t mean that it goes away. The collection agency still has the right to try and collect.
2007-02-02 08:07:57 · answer #2 · answered by YSIC 7 · 0⤊ 1⤋
It will stay on your credit report for seven years.
You might want to try and negotiate with them. They might agree to not mark you as a bad payer if you agree to pay x% of the debt instead of y%.
If they have marked it off as a bad debt, they can still try to collect it or sell the debt to a collection agency.
2007-02-02 05:01:03 · answer #3 · answered by mikeleibo 2 · 0⤊ 0⤋
talk to the credit report source...a friend had a debt and returned the merchandise and debt stayed on report and then the friend offered to pay the debt in full and was told..."sure, go ahead but it stays on for 7 years even if you returned the merchandise and pay it in full"
2007-02-02 05:04:13 · answer #4 · answered by Library Eyes 6 · 0⤊ 0⤋
this will stay on your credit report for 7 years...and ultimately (depending upon the amount) will be submitted to the IRS as income...so if u defaulted on say $5,000 IRS considers this income upon receiving a 1099 from this business you will indeed pay tax on this amount
2007-02-02 05:02:40 · answer #5 · answered by sunbun 6 · 0⤊ 2⤋