~ J. Carlton Ford, DebtWarriors.com
“Charge-Off”. That word is frighting and mysterious, for many.
Even intelligent and educated people don’t know what to expect regarding a charged-off credit account.
As a Consumer, you may not be able to prevent your accounts from being Charged-off. With this economy, many very intelligent Americans are being laid off. Unemployment makes it very difficult to pay your utilities or buy food – let alone Credit Cards, Auto Loans, or the Mortgage or rent.
If you are suffering from the stress of Charged-off accounts, today I’m going to work hard, to help you relieve your stress about the charged-off accounts and take you one step closer to winning your war on debt.
Thanks for stopping by today 🙂
“What is a Charge-Off?”
In essence a Charge-Off is a way for Creditors to CYA – “Cover their Assets”. But if you’re the technical type, here’s a solid definition:
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“A Charge-Off is the removal of an account from the Creditors records as an asset. The Charge-off usually occurs after a outstanding Debt has not been paid or is late (“delinquent”), for a certain amount of time (usually after 180 days).
“What initiates a Charge-Off?”
That depends largely on a number of factors. The two most common are;
1.) Internal company policy and 2.) U.S. Government Regulation.” For example, In the case of Credit Card Debt, the Charge-Off time period is usually six months (or 180 days) after no payment is received.
The Creditors usually Charge-Off “bad debt” account(s) so the Creditor can then write-off the bad debt. Creditors “Write-Off” bad debt to get tax breaks.
“What Happens After a Debt is Charged-Off?”
After a Charge-Off the Creditor has to report the balance of the bad debt to the Big 3 Credit Bureaus ( aka CRA’s); they are; Equifax, Experian and Trans-Union.
But Please Beware?
Just because a debt has been Charged-off by the Creditor, it does not mean that the Creditor will stop making attempts to collect the debt. In fact, it’s quite the opposite :(. Creditors and Debt Collectors have some rights with regards to collecting Debts.
Most importantly, as an American Consumer, you have more rights and it’s easy to proctect them (for yourself) 🙂
After a Consumers debt has been written off (Charged-off) and the money owed reported as bad debt, usually the Creditor will sell or assign the outstanding Debt Balance, to a 3rd Party Debt Collector to collect on.
When the War On Debt Begins
Once the debt is reported as bad and sold to a Debt Collector, be clear – the War On Debt has begun. Once the War begins, all heck breaks loose on a Consumers Credit Reports.
Sometimes two or more Debt Collectors will attempt to collect on the same account.
Often I’ve seen the same account being collected on by two different Debt Collection Agencies (Dirty Debt Terrorist!). Many Debt Collectors will use immoral tricks. For example, like “illegally re-aging an account”.
Other Debt Collectors try to entice or coerce a Debtor into admitting the debt (thereby “Legally re-aging” the account”). Often Debt Collectors will try to get Debtors to make a small “good-faith” payment on the account to re-age it. Once the account is legally re-aged, the clock on Statute of Limitations will be reset.
Debt Warriors go over this in detail in OPERATION TWO “Time-Check”, in the Debt Warriors Arsenal!
Can Consumers Can Be Sued For Charge-offs?
Short answer; YES! Consumers can be sued after a debt has been Charged-off. While I was at the Bankruptcy Prevention Law Firm I saw how fast a $5,000 Credit Card Charge-Off would get into the Hands of a Debt Collection Attorney. Once a Debt Collection get’s the Charged-off account a Court Date is often in the works to collect.
“In my professional experience any Charge-Off over $1,000 may very well get you sued for the Charge-off.”
That is why it’s important to take Charge-offs’ seriously. This is not to say surrender to a Charge-off. Just the opposite. If you are dealing with a Charge-off you are actually in the best position to negotiate and settle that debt for pennies on the dollar 🙂 The Debt Warriors Arsenal is the down-load that teaches you how.
“What is there to Fear From Charged-Off Debt?”
Charged-off account left unchecked, can be like a Missile of Debt, headed directly into your life. The damage of a charge-off can hurt you financially for many, many years. Remember also that a Charged-off Account can go Legal fast, in the hands of an Attorney.
“Can a Charged-off Account Can Be Settled?”
Short answer; absolutely 🙂 ! And that’s why we’ve produced the DEBT WARRIORS ARSENAL (to teach American Consumers how to settle their debt for themselves).
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Think about this?
A.) The Creditor has given up hope of collecting the past due balance. B.) The Creditor has written the debt off to receive tax breaks, and C.) the Creditor assigned or sold the Debt to a Debt Collector (aka junk debt buyer) to collect on.
“What is the Upside of Charged-off Debt?”
Once you’ve settled a Charged-off debt, usually the Creditor or Debt Collector will list the Debt as “Paid Settlement” on your Credit Report 🙂
The ability to settle a Charged-off Debt is one of the many reasons why Debt Warriors have produced the Debt Warriors Arsenal.
In 5 easy to understand Operations, Debt Warriors walk you step-by-step through the process of negotiating and settling your debt for “pennies on the dollar”.
www.DEBTWARRIORS.com 