Posted on: 24th Nov, 2005 12:39pm
When you're unable to pay off a debt, the creditor may issue a credit charge off. A charge off doesn't mean that the debt is cancelled or forgiven. It's not that you no longer owe the debt. Credit charge off implies that the unpaid debt will be reported as the creditor's loss when he uses accounting methods for tax purposes.
The creditor may feel that he cannot collect the debt from you; he may write off the account as a bad debt. But he doesn't lose the right to collect the debt. And, even if the creditor does not try to collect an unsecured debt (like credit card, personal loan, etc), he may sell it off to a collection agency (CA), which will then set off to collect the debt.
The creditor may feel that he cannot collect the debt from you; he may write off the account as a bad debt. But he doesn't lose the right to collect the debt. And, even if the creditor does not try to collect an unsecured debt (like credit card, personal loan, etc), he may sell it off to a collection agency (CA), which will then set off to collect the debt.
How to remove charge off from credit report
Usually credit charge off occurs when payments aren't made for more than 6 months. And, it does have a negative impact on your credit report as it stays on the report for 7 years and 180 days from the date of first non-payment of debt. So, what you need to do is, negotiate with the collection agency and try to remove the charge-off from your credit report.
If the creditor has charged off your loan recently, then request him to pull back the debt from the collection agency. Explain that you wish to deal with the creditor directly. Once the debt is pulled back, you can negotiate with creditor to settle the debt for as much as you can pay. You should also negotiate a pay for delete agreement such that even though you don't pay mortgage balance in full, the lender would communicate with the bureaus and have all information on the account removed from your report. If the creditor doesn't want a pay for delete agreement, then request him to update your account status as "Paid charge off".
However if you try to settle the debt by making a partial payment, then the creditor may report it as "Settled Charge off". A "Paid" or "Settled" charge off on a mortgage debt helps to remove the lien from the house title.
If the creditor has charged off your loan recently, then request him to pull back the debt from the collection agency. Explain that you wish to deal with the creditor directly. Once the debt is pulled back, you can negotiate with creditor to settle the debt for as much as you can pay. You should also negotiate a pay for delete agreement such that even though you don't pay mortgage balance in full, the lender would communicate with the bureaus and have all information on the account removed from your report. If the creditor doesn't want a pay for delete agreement, then request him to update your account status as "Paid charge off".
However if you try to settle the debt by making a partial payment, then the creditor may report it as "Settled Charge off". A "Paid" or "Settled" charge off on a mortgage debt helps to remove the lien from the house title.
SOL and credit charge off
As long as the SOL (Statute of Limitations) period exists, the creditor/collection agency can file a lawsuit against you and try to retrieve the unpaid debt, even after charge off. But after the SOL period (4 to 6 years, varies from state to state) expires, there'll be no lawsuit against you but the creditor or collection agency still has the right to collect from you. However, if debtors make a written promise to pay off the debt or make partial payment after the SOL expires, then in many states, the SOL starts over again.
If you have a charge off on your credit report and wish to get a mortgage, the lender would expect you to pay it off and then go for the mortgage. This is because a mortgage charge off implies there is still a lien existing against the title and the lien can only be removed once it is paid off.
If you have a charge off on your credit report and wish to get a mortgage, the lender would expect you to pay it off and then go for the mortgage. This is because a mortgage charge off implies there is still a lien existing against the title and the lien can only be removed once it is paid off.
Can I get some information on Charge Offs?
Hi quiha,
You have mentioned that your property was short sold so the question of charge off does not arise. If a charge off is wrongly mentioned in your credit report, then you can dispute it with the bureaus and remove it from your credit report.
You have mentioned that your property was short sold so the question of charge off does not arise. If a charge off is wrongly mentioned in your credit report, then you can dispute it with the bureaus and remove it from your credit report.
I received a notice that a lien has been filed on a debt that is way past the sol. what should I do now/
Hi Guest!
Welcome to forums!
As the SOL period is over, the lender cannot take any legal action against you. You should send a letter to the lender stating that the SOL period is over and that he cannot take legal actions against you. Do not start paying the debt as it will renew the SOL period.
Sussane
Welcome to forums!
As the SOL period is over, the lender cannot take any legal action against you. You should send a letter to the lender stating that the SOL period is over and that he cannot take legal actions against you. Do not start paying the debt as it will renew the SOL period.
Sussane
SOL has expired on my debts and entries have been removed from the credit bureaus. Now I found out that some junk debt collection agency started to send me letters at home saying I owe them this outrages amount of money on those debts that been takes off from Credit bureaus. My question to you is, can these entry apear again on credit bureau if this collection agency reports it. It is so illigal that I am looking into suing but in meantime I need to know answer. Please help
amith.sussane,
Can collection agency report " zombie" debt back to credit bureas?
Can collection agency report " zombie" debt back to credit bureas?
Hi anonymous,
If the SOL period is over, then the collection agency cannot report it to the credit bureaus. But if the SOL period id not over, then the collection agency has the right to collect the dues from you and can also report it to the credit bureaus.
Thanks
If the SOL period is over, then the collection agency cannot report it to the credit bureaus. But if the SOL period id not over, then the collection agency has the right to collect the dues from you and can also report it to the credit bureaus.
Thanks
how do you make arrangements to pay off the debt after a charge off?
Hi dakota!
Welcome to forums!
You will have to contact the collection agency and they will let you know the amount you need to pay in order to remove the charge off from your credit report.
Sussane
Welcome to forums!
You will have to contact the collection agency and they will let you know the amount you need to pay in order to remove the charge off from your credit report.
Sussane
how do i know weather the original collector sold my account off to another collector? how do i know if the so called current collector is legite?
Hi anonymous!
Welcome to forums!
You can call your original lender and check with him whether or not he sold your account to a collection agency or any other collector. You can even ask him to send a certified mail to you stating the details about your new collector.
Feel free to ask if you've further queries.
Sussane
Welcome to forums!
You can call your original lender and check with him whether or not he sold your account to a collection agency or any other collector. You can even ask him to send a certified mail to you stating the details about your new collector.
Feel free to ask if you've further queries.
Sussane
thanks for the information i working on this right now i got to get out off this APT!!!!
You're most welcome Caramel! :) In case you've further queries, post your question in the forum and the members/experts participating here would try to answer your query.
Sussane
Sussane
I had three cedit card and I was not able to pay for it since 2003. Two charged off and one sold to thrid party .
How can I remove theses from my credit report
How can I remove theses from my credit report
majid, the easiest way to clear things up on a credit report is to make payment in full. if you wish to negotiate with these creditors to seek a reduced amount, that's clearly acceptable too.
some people would tell you to dispute the accounts, but that's chicanery. you've already said you were responsible for the debts. if you have the wherewithal to pay them, do so and you'll see an improvement on your credit report.
some people would tell you to dispute the accounts, but that's chicanery. you've already said you were responsible for the debts. if you have the wherewithal to pay them, do so and you'll see an improvement on your credit report.
I setteled my credit card so i owe them nothing, but on my credit report it says charge off, how do i get this removed and how bad is this hurting my credit score?