After a debt is charged off can the creditor try collecting from a person later?
Full Question:
After a debt is charged off can the creditor try collecting from a person later?
09/18/2007 |
Category: Debts and Credit |
State: ALL |
#8851
Answer:
Yes, it is possible. A "charge-off" means the creditor writes off the account balance as a "bad debt." It usually happens after six months of non-payment. After that, it is no longer included in their accounting books as an asset. However, you still owe the money, the creditor has just been forced by the rules of accounting to zero out the debt on their financial ledgers.