A Bankruptcy and Debt Relief Lawyer and Attorney Andy Miofsky

2249 Pontoon Road, Granite City Illinois 62040


An Illinois Bankruptcy Lawyer and Attorney 618-931-1313 Offering Chapter 7 and Chapter 13 Bankruptcy Attorney information in Madison, St Clair & Southern Illinois counties

Charged Off Debt
"Charge off" is an accounting term used in the finance industry that means an account is no longer active.  A "Charged off" debt is an account that the borrower quit paying.  When an account stops receiving payment it is said to be non-performing - in other words, it is not earning money for the business.  Usually after six months a non-performing account is charged off by the original lender and either transferred to a collection agency or it is sold to a debt buyer. 

Many debtors mistakenly believe a charged off debt is no longer owed or no longer being collected.  That is incorrect.   Debt collectors may try to collect a charged off debt years after the original creditor transferred the account.   Many times the debt collector is someone whom you do not recognize as ever owing money.  You can be sued for collection of a charged off debt.

If you are contacted regarding a charged off account, the first thing to examine is whether the state statute of limitations prevents suing on a time barred debt.  State laws vary on the statute of limitations and a lawyer can help answer that question.
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