Charged Off & Written Off...

[i'llBEback]

What is the name of your state? CA

Spoke w/ paralegal re: my possibility of filing CH7. (no assets) Been, long term, unable to find employment.

After getting my credit report (@ their urging) I noticed the largest usecured debt I had was listed under STATUS as being, "Account Charged Off. $43,500 Written Off".

What exactly does this mean? BTW: this creditor I SENT a C&D letter to.

Also noticed that this creditor did check & has pending (until 3/2007) a check for any mortgages. (as I have no Paycheck to Garnish) Is this to see if I aquire any property they could attach a lein?


Thank you for answers & any input. ( & sorry if this was a lame-o question)

 

[bigun]

Chargeoff is an accounting term meaning shareholders and regulators have been informed that the debt is likely uncollectable.

 

[Tiwahe]

Don't they also get a tax break?

Chargeoff is an accounting term meaning shareholders and regulators have been informed that the debt is likely uncollectable.

 

[bigun]

Yes, chargedoff accounts are written off the corp. taxes.

 

[olgethorpe]

Just a couple of gotcha that might go along with this...

1. You may be getting a 1099c for this amount...on which you'll have to pay income tax, unless you can show you were insolvent and / or filed BK on this debt.

2. If the entry gets changed to "charged off / sold to another lender", that means the OC has sold it for pennies on the dollar to junk debt buyer who might continue to hassle you for the money...

 

[i'llBEback]

The addition of: "written off" does this term mean the same thing?

Thanks for responses.


Though I did/do intend to pay this debt, got behind on repayment & tried to neg. options but the OC demanded the note be paid in full... impossible right now unfortunately.

 

[bigun]

Writeoff-chargeoff are the same.

 

[i'llBEback]

thx bigun

cheers.