sxxx Posted June 7, 2007 Report Share Posted June 7, 2007 Helly guys,Can the original creditor charge off a debt, but don't sell it and keep it?Is that legal??I thought when you charge off a debt, you must sell it...??? Link to comment Share on other sites More sharing options...
bigjohnstud4200 Posted June 7, 2007 Report Share Posted June 7, 2007 Helly guys,Can the original creditor charge off a debt, but don't sell it and keep it?Is that legal??I thought when you charge off a debt, you must sell it...???Yes it's legal. A charge off is just an accounting term and you are still liable for the full amount. Link to comment Share on other sites More sharing options...
sxxx Posted June 7, 2007 Author Report Share Posted June 7, 2007 ouch!!What is the possibilities of a settlement? and here is my concern When you charge off an account that is listed as a Loss, and the company always take that loss. So my question is, why should you pay full price that they took the tax deduction from???? Link to comment Share on other sites More sharing options...
willingtocope Posted June 8, 2007 Report Share Posted June 8, 2007 Most companies that issue credit operate on the "accrual" method of accounting. When means they claim income when its "earned", rather than received, and claim a loss when it looks like that claimed income was erroneous. When they claim a loss, it does offset accrued income on which they'd have to pay taxes. Doesn't really matter to you. They still own it, you still owe it, they may still try to collect. Nothing says they have to sell it.The IRS gives them 3 years (or so) after the last "identifiable event" (like an attempt to collect) to continue to carry the account on their books. When they do decide to remove the account, then they'rs supposed to issue you a 1099c for the "found income"...on which you get to pay taxes. Link to comment Share on other sites More sharing options...
gcis Posted June 8, 2007 Report Share Posted June 8, 2007 Helly guys,Can the original creditor charge off a debt, but don't sell it and keep it?Is that legal??I thought when you charge off a debt, you must sell it...???Hi sxxx,I am in the same boat as you are. I have three accounts with OC which are showing as CO but no other CA's are reporting to CRA. I am trying to get the answers from this board before I contact OC for settlement. Link to comment Share on other sites More sharing options...
Amerikaner83 Posted June 8, 2007 Report Share Posted June 8, 2007 What is the possibilities of a settlement? That depends on a lot of things. Since it's still within SOL (I assume) and it's already CO'ed, I would think your chances are better since it's not with a CA So my question is, why should you pay full price that they took the tax deduction from????If you want it gone from your reports, PFD usually involves a full payment. Notice I said "usually". It all depends on who you talk to and how your approach is. Link to comment Share on other sites More sharing options...
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