What Is a Charged-Off Debt?
Know Your Rights
Understanding Charged-Off Debt – What It Means for You
If you have been contacted by a debt buyer or collection agency about a charged-off debt, you may be wondering what it means and whether you still owe the balance. There is a lot of misleading and false information online about charged-off accounts, so it’s important to verify the facts with a trusted law firm like Consumer Rights Law Firm PLLC before making any decisions.
What Does It Mean When a Debt Is Charged Off?
A charge-off occurs when a creditor writes off an unpaid debt as a loss, typically after 180 days (6 months) of non-payment. This means the original creditor has removed the debt from its books for accounting purposes, but it does not mean the debt is forgiven or canceled. The debt can still be sold to a debt buyer or assigned to a collection agency, which will then attempt to collect from you.
Do You Still Owe a Charged-Off Debt?
- Yes, you are still legally responsible for repaying a charged-off debt unless it has been settled, discharged in bankruptcy, or is beyond the statute of limitations in your state.
- A charged-off status does not erase your obligation—it simply means the original creditor has stopped trying to collect and may have sold the debt.
- If a debt buyer or collection agency has acquired the debt, they may attempt to collect the full balance plus interest and fees.
- If you ignore the debt, the collection agency could sue you in an attempt to obtain a court judgment against you.
Be Cautious of False Information About Charged-Off Debts
There is a lot of misinformation online claiming that charged-off debts don’t have to be paid or that they disappear after being removed from the original creditor’s records. These statements are not true and could lead to serious financial and legal consequences if followed.
💡 Always verify your rights and legal obligations with an experienced law firm before making any decisions about a charged-off debt.
How Consumer Rights Law Firm PLLC Can Help
If you are dealing with a charged-off debt, being contacted by a debt buyer or collection agency, or facing a debt collection lawsuit, we can help:
- Review your case and determine if the debt is still valid.
- Negotiate a settlement to potentially lower the amount owed.
- Defend you against lawsuits filed by debt collectors.
- Ensure your rights are protected throughout the debt collection process.
Contact Us for Legal Guidance on Charged-Off Debts
Don’t trust everything you read online—get the facts from a legal professional. If you are dealing with a charged-off debt or have been contacted by a debt buyer or collection agency, let us review your case and help you understand your options.
📞 Call us today at 877-700-5790
💬 Chat with us in the lower right-hand corner of this page
✉ Email us to schedule a consultation
At Consumer Rights Law Firm PLLC, we provide trusted legal guidance to help you navigate charged-off debts and protect your financial future.