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?
Did you paid off the charged off amount? If you had paid off the amount, then you should contact your collection agency and ask them to inform the credit bureau about the payments and get it removed. Alternatively, you can directly contact the credit bureau and submit the required documents to get it removed from your credit report.
Can a Collection Agency report on my credit if they no longer have my acct. The acct was transferred to another agency. I found out when I tried to contact the Agency on my credit report they told me they could not help me they no longer have the acct.
Hi James,
If the collection agency does not hold your account, then they won't be able to report the same on your credit report. The collection agency which holds the account would be able to report it to the credit bureaus.
If the collection agency does not hold your account, then they won't be able to report the same on your credit report. The collection agency which holds the account would be able to report it to the credit bureaus.
My lending company said that my account has been charged. I am now able to make payments but how do I find out if the account was given to a 3rd party or collection agency? And if someone else did assume the loan can I still pay and avoid repossession?
Hi I have a charge off and i am making voluntary payments on it however it's not what they would like for me to pay. She said that she can still take me to court and pursue it, is that true?
Hi!
Welcome to forums!
To Hiswife,
You can contact your creditor and ask them to inform you as to who the collection agency is. Once the lender lets you know about it, you will have to contact them and pay off the dues to them. You will have to ask the creditor to take back the account from the collections and then negotiate about assumption.
To chrystine,
The collection agency can sue you for the debts. You can negotiate with the collection agency so that they can give you a payment plan to pay off the dues.
Feel free to ask if you've further queries.
Sussane
Welcome to forums!
To Hiswife,
You can contact your creditor and ask them to inform you as to who the collection agency is. Once the lender lets you know about it, you will have to contact them and pay off the dues to them. You will have to ask the creditor to take back the account from the collections and then negotiate about assumption.
To chrystine,
The collection agency can sue you for the debts. You can negotiate with the collection agency so that they can give you a payment plan to pay off the dues.
Feel free to ask if you've further queries.
Sussane
does a judgement ever expire is arizona
that's best asked of the court system in arizona...either the court in which the judgment was obtained, or with the state attorney general's office.
on here, you'll get much speculation, and perhaps a real answer, but for safety's sake, it's best you get a true legal opinion in this matter (or definitive rule of law).
on here, you'll get much speculation, and perhaps a real answer, but for safety's sake, it's best you get a true legal opinion in this matter (or definitive rule of law).
when can I own a home again after a foreclosure.
You will need to wait 3 - 4 years
I had a repo in 2002 from americredit on a car that only had a balance of $2000 left on it. They have sold the account 5 times back and forth to other companies and back to them!! On my credit report it shows a charge off in 2002 for $8000. ? Then it shows no payment with the 5 other companies who have held this debt. Now the debt is showing at $14000.00 . On August 2009 it has Americredit saying charge off again , But this time with the $14000.00. Is this Legal? And when will this come off my credit? Because they keep renewing it every couple of months.
It think the debt is collectign interest and very high rate
heck with yoru original lender and get ti settled
heck with yoru original lender and get ti settled
i thought i settled a debt on a card about a year ago. now getting a letter from an attorney wanting to sue for almost teh orginal amount what so i do.....
you "thought" isn't going to cut it. you need proof. did you pay by check or debit card? did you pay by money order or cashier's check? did you pay by credit card over the phone? did you get a receipt from the creditor? do you have any proof?
my husband got our home modified to lower the payment on the new obama plan, which they reduced the loan amount and interest rate, but the second mortgage was not modified...i thought it was but i found out we still owe on the second which is behind....we owe 350k on firs and 96k on second...can they take my home from me....i am current on my first lien and was not aware of the fact the second was not paid off....what can i do..... :