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How and when does a collection account become a chargeoff?In: Debt Collection |
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When the lender decides to classify it that way. Some will automatically charge it off when it is 90 days delinquent, others will never. Charging off a debt is just an accounting entry that keeps the bank from overstating their income and assets. It does not mean the debt is no longer owed or that they will stop trying to collect it.
First answer by Rfor. Last edit by Rfor. Question popularity: 147 [recommend question]
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Answers.com > Wiki Answers > Categories > Business and Finance > Personal Finance > Debt and Bankruptcy > Debt Collection > How and when does a collection account become a chargeoff?
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What is chargeoff? What is a chargeoff? Do you have to pay a chargeoff? Pay status collection chargeoff? Paying a chargeoff collection acct? What is the difference between a chargeoff and a collections account?
