What is a charge off
A charge-off is an accounting procedure for tax purposes used by the creditor where an uncollectible debt or charge-off is reported as a loss for the creditor. Creditors typically write off or charge
off a debt if there has been no payment on the account for more than 180 days or six months.
Can a creditor still collect on a debt that has been charged off
The creditor can and often does attempt to collect the debt, unless the Statute Of Limitations has expired on the debt, long after it has been charged off with either an in-house collection program or
more commonly with a third-party debt collection service. Because the original contract for the debt, in your case a credit card agreement, was not honored, the account balance can be requested paid
in full. A creditor will sometimes accept a partial payment of the debt and the account will be reported as "settled charge-off".
The charge-off will remain on your credit report for seven years plus 180 days from the date of the first nonpayment under the Fair Credit Reporting Act.