What's Gonna Happen When My Debt Has Charged Off?
Posted on
June 22, 2009
at
12:11 am
I have been contacted by my creditor informing me that my one of my credit cards has charged off, and I want to know what that means. I have not received any word on what that is exactly. Please enlighten me. thank you, and have a blessed day.
Posted on
June 22, 2009
at
2:45 am
When a debt has been charged-off by the creditor, your bill will be considered as a loss, or a "liability" on their accounting books. If I'm not mistaken it will also be reported as a bad debt on your credit report.
Posted on
June 22, 2009
at
2:58 am
Also, am I still responsible for paying for this debt? Or is it no longer in my hands now? I am in a tough financial situation right now and I really want to get my bills taken care of. I have lesser hours at work but I know everything will pull through for my family and I. Hope someone can advise. Thank you
Posted on
June 22, 2009
at
4:12 am
PraiseYou~If an account has charged off, either one of these four things will happen:1. The creditor will transfer the account to an in-house (or first-party) collections agency.2. The creditor will transfer the account to an third-party collections agency.3. The creditor will sell the account to a debt buyer.4. The account will be sent to a local attorney for assessment purposes.And yes, you still have responsibility for this debt. In fact, when an account has charged off, it will remain on your credit report for seven years from the date the account was first reported as a "bad debt," as it's also called.
Posted on
June 22, 2009
at
4:38 am
The reason why the debt's been charged-off is due to non-payment. That basically means that this account has been behind for six months--typically 180 days. Federal law mandates banks and other financial institutions to charge off these accounts if they have not been taken care of in this entire duration. However certain companies choose to charge off accounts after 207 days of non-payment.
Posted on
June 22, 2009
at
4:57 am
How can I get this debt taken care of, then? Could you give me some options, please? Is it also possible for them to sue me because of this? My goodness, I hope not.
Posted on
June 22, 2009
at
5:18 am
You have quite the number of options, PraiseYou. What you can do is: * Settle the debt - you can either settle the debt yourself by setting up a negotiation plan with the creditor or the collector, or you can hire the services of a debt settlement firm to act as an arbiter between you and the creditor. * Or you can acquire a debt consolidation loan that can pay off your bills.
Posted on
June 22, 2009
at
5:23 am
You also may owe more than what is actually due, because of interest and penalties--and what you'll owe in total may depend on the original contract, your state law on collections, and the statute of limitations, or the SOL, on your state.I think you'll also need to find out the SOL on your state. It states that after a certain period of time (typically 3-6 years), you'll no longer be obliged to pay yout debt. If I'm not mistaken that date would start on the day the account first got behind on payment.
Posted on
June 22, 2009
at
5:38 am
I agree, settling the debt may be a good option for you. I know that you may have had lesser hours at work, but the good thing about it is, you still have a steady source of income to get by, and that already helps a lot on your situation.To also add up on household income, you can try taking odd jobs or sell some assets. That way you may be able to acquire the funds that you need and use the money to pay off your other debts.You may also wish to fill out a form on the top of this thread so you may be contacted with a qualified provider from DestroyDebt.Com . . . it won't hurt!
Posted on
June 22, 2009
at
5:46 am
Caffeinatrix I don't think the consolidation bit was such a good idea. That means the debtor has to get another loan in order to pay off another loan. The main premise for debt relief after all is having a debt free existence. Doing that method doesn't really ruin the very heart of having debt in the first place-- and if the debtor ends up defaulting on the second loan, he'll be in much more trouble than before
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