Can I Sell a Car That Has Been Charged Off
Can a Drove Agency Claim on my Charged Off Debt?
How exercise 'Charged Off' debts touch my credit score?
Dear Kim,
I received a letter of the alphabet from a collection agency on a debt that has been charged off. I didn't think the creditor could still come afterwards me if the debt had been charged off. Am I responsible for paying this debt?
Sincerely,
John
Dearest John,
The short answer to this is, aye, you are responsible for paying this debt. Many consumers are under the assumption that charged off debt is the equivalent of cancelled debt; unfortunately, this is non accurate. To put it in bones terms, lenders have profits and losses. After a debt has typically remained unpaid for half-dozen months, the creditor puts the debt into a charged off status. The creditor has moved the account from the turn a profit column over to the loss column, because at that place is a run a risk they will not compensate their coin. It also means that the account has been closed for whatever future apply.
The impact that a accuse off can have on a consumer is meaning. Once the charge off is reported on your credit report, your credit score will most probable drop. Creditors will oft sell these accounts to collection agencies, making information technology almost incommunicable for the consumer to work with the original creditor. The accuse off will likewise remain on the credit report for 7 years, which may bear upon your attempts at future credit, such as a home and/or car purchase.
I strongly advise against ignoring the debt. The fact that an account has entered the accuse off condition is indicative of a larger money management claiming. I suggest that you reach out to one of our Certified Credit Counselors at 1-800-992-4457 to discuss the charge off and your current financial status.
Adept Luck,
Kim
Kim Cole is the Teaching Outreach Coordinator for Navicore Solutions. Kim provides fiscal education workshops and seminars to communities. Readers can submit general questions relating to personal finance, credit scoring, debt management, student loans, dwelling house finance or bankruptcy which may exist highlighted in the next month'southward edition. All identifying information will be kept anonymous.
Please transport your questions via email to DearKim@navicoresolutions.org
Source: https://navicoresolutions.org/can-a-collection-agency-claim-on-my-charged-off-debt/
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