Charge Offs

What is the name of your state? Texas

If a company lists your car as a "charge-off", is the charge off amount written off by the company as a loss during tax time? If they get credit for it then, and still try to get money from you for it, isn't this double dipping?

Might be a stupid question, but I had to ask!

Thanks!

[JETX]

This question has been asked many, many times on the forum (that is why the page says "check the archives").

So, lets try this one more time... the term 'charge-off' or 'write-off' is just an accounting term used to indicate that the debt has been moved from the 'performing ledger' (being paid) to the 'non-performing ledger' (not being paid). It has nothing to do with any waiver of the debt or that it is no longer valid.

It also has nothing to do with your taxes... yet. There is a chance that at some point in the future, the lender (assuming a financial institution) MIGHT file a 1099c form on you with the IRS. If they do this, you will get a copy of the 1099c form.. and have to report the unpaid balance on your taxes as income.

[bigun]

And, they will use the bad debt as a tax deduction but, that's none of your concern nor, a reason to think the debt is nullified.