“Charged off doesn’t mean your debt is forgiven. Don’t be misled into believing that because the creditor wrote off your balance that you no longer need to pay the debt.
Even when a company writes off your debt as a loss for its own accounting purposes, it still has the right to pursue collection. This could include suing you in court for what you owe and requesting a garnishment of your wages. Unless you settle or file for certain types of bankruptcy or the statute of limitations in your state has been reached—you’re still responsible for paying back the debt.”
Seven years. If you don’t make a payment on an account for seven years, it falls off your credit report.
Understand that your credit will be shit for those seven years, but if you’re in such a bad spot that you can’t see any way of getting caught up, your credit score is probably doomed either way.
I had to look up “charge off” (I always pay my bills ya know) and yeah it’s not a positive thing.
https://www.credit.com/blog/charged-off-as-bad-debt/
“Charged off doesn’t mean your debt is forgiven. Don’t be misled into believing that because the creditor wrote off your balance that you no longer need to pay the debt.
Even when a company writes off your debt as a loss for its own accounting purposes, it still has the right to pursue collection. This could include suing you in court for what you owe and requesting a garnishment of your wages. Unless you settle or file for certain types of bankruptcy or the statute of limitations in your state has been reached—you’re still responsible for paying back the debt.”
Seven years. If you don’t make a payment on an account for seven years, it falls off your credit report.
Understand that your credit will be shit for those seven years, but if you’re in such a bad spot that you can’t see any way of getting caught up, your credit score is probably doomed either way.
And in the meantime, you have to make good on all your other debt, or the clock resets.
They think this is a total win!