Answers.com > Wiki Answers > Categories > Business & Finance > Personal Finance > What is a paid charge off?

What is a paid charge off?

In: Personal Finance [Edit categories]

Answer:

Answer

If you fail to pay a debt for a period of time (usually around 180 days), the creditor usually assumes it will not be paid, and writes the balance due off his books as a tax deductible "charge off". If you then pay the debt after it has been paid, it is a "paid charge off". It is usually good to try to negotiate with the creditor to see if they will remove the line "charge off" from your CR, but it's best to negotiate before you pay them. Paying the charged off account without removal of the trade line will help your credit rating surprisingly little.

First answer by ID0000000000. Last edit by anonymous. Question popularity: 47 [recommend question].

[report abuse]

Can you answer these Personal Finance questions?

	Is stay at home revenues a good program?	Answer it!
	How you abbreviate payment?	Answer it!
	Can I get a payday loan if my SSI payments are direct deposited?	Answer it!
	Why public sector bank owner is government?	Answer it!
	What is meant by the term residual claim to income as applied to common stockholders?	Answer it!

Relevant answers:

How do you pay a settled and paid charge off?
Once a chargeoff has been marked "paid charge off," the borrower still owes the debt, but from an accounting standpoint, the lender has decided that they will not be able to collect that debt. Also,...
What is gross charge off and net charge off?
Loan or debt which have been delinquent and subsequently written off are classified as Gross Chargeoffs. however in certain cases, partial recoveries may be made at a later date. The net charge off...
How do you get a charge-off removed from your credit report after you have paid it in full?
Beat the Collector. You should send notification to the collection agency you paid in full. They will have the status changed. Carbon Copy the credit bureau.
What is a charge off?
A "charge off" is an account that a creditor deems as "uncollectable" and thus is placed into the "charged off" category meaning they are no longer going to attempt to collect funds on it. This...
What are charge offs?
Charge offs are accounts that have been written off by the creditor as uncollectable. The debt owed is still valid and can be collected on either by the original creditor or by a collection agency....