![\"\"](\"https:\/\/www.consumerslaw.com\/blog\/wp-content\/uploads\/2019\/03\/Creditor-Suing-300x200.jpg\")
<\/figure>\r\n<\/div>\r\n\r\n\r\n\r\nNo.<\/strong> A bank or other creditor still has the full right to sue to collect an overdue account despite the fact that it (or the original bank) has charged-off or written-off the account.\u00a0Again, charge-off is done for the lender\u2019s accounting purposes; charge-off does not make the debt disappear and is not a defense in court. (Other defenses may apply of course, like the statute of limitations, or the company suing has not shown that it actually owns the debt, etc.)<\/p>\r\n\r\n\r\n\r\n Charge-off is a negative or adverse factor on your credit report and will harm your credit score.\u00a0 A charge-off will make it more difficult to be approved for credit, make a loan potentially more expensive, or make it more difficult to obtain a job or promotion where the employer runs a credit report.\u00a0If you want to pay to resolve a charged-off account, you should try to telephone and negotiate for the lender to agree in writing to remove the negative tradeline entirely when you pay.\u00a0If you do not arrange for this in advance, the lender may simply report to the credit bureaus that the account is \u201csettled\u201d or \u201csettled\/paid,\u201d which may still have some negative impact.<\/p>\r\n\r\n\r\n\r\n There can be, depending on the circumstances.\u00a0 For charge-offs over $600, the bank or other lender may be<\/em> required under the tax regulations to issue an IRS 1099c form for cancellation of indebtedness.\u00a0This may<\/em> need to be treated, by you, as income on the next year\u2019s tax return. For example, if an undisputed debt of $2000 is charged-off the bank may well issue you an IRS 1099c form for $2000 for what is called \u2018cancellation of indebtedness\u2019.\u00a0\u00a0You may have to declare that $2000 as income the following year, and pay taxes on the $2000 charged-off, even though you did not get a check for any amount of money. But there may be proper ways around this under the tax regulations. The tax implications can be complex, and we do not offer tax advice, so be sure to consult with your tax professional or accountant.<\/p>\r\n\r\n\r\n\r\n Flitter Milz<\/strong> is a consumer protection law firm, experienced and knowledgeable of the laws that protect consumers whose debts have been charged off.\u00a0 Our firm represents people against debt collectors and the credit bureaus, where charged-off debts have been collected through deceptive, misleading tactics, or have been credit reported in error.<\/p>\r\n\r\n\r\n\r\n Consumers have rights under the Fair Debt Collection Practices Act and the Fair Credit Reporting Act that offer protections from charged-off debts.\u00a0 Whether you owe the debt or not, the collector and credit bureaus must follow the law.\u00a0 Contact us<\/a><\/strong> for a FREE consultation.<\/p>\r\n","protected":false},"excerpt":{"rendered":" When payments on your account go unpaid, the creditor may stop you from making additional charges and list your account as a charge-off.\u00a0 But even if the creditor stops trying to collect on your account, you still could be responsible for the debt.<\/p>\n","protected":false},"author":1,"featured_media":589,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":[],"categories":[3,4],"tags":[41,52,40,38],"_links":{"self":[{"href":"https:\/\/www.consumerslaw.com\/blog\/wp-json\/wp\/v2\/posts\/588"}],"collection":[{"href":"https:\/\/www.consumerslaw.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.consumerslaw.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.consumerslaw.com\/blog\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.consumerslaw.com\/blog\/wp-json\/wp\/v2\/comments?post=588"}],"version-history":[{"count":11,"href":"https:\/\/www.consumerslaw.com\/blog\/wp-json\/wp\/v2\/posts\/588\/revisions"}],"predecessor-version":[{"id":1783,"href":"https:\/\/www.consumerslaw.com\/blog\/wp-json\/wp\/v2\/posts\/588\/revisions\/1783"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.consumerslaw.com\/blog\/wp-json\/wp\/v2\/media\/589"}],"wp:attachment":[{"href":"https:\/\/www.consumerslaw.com\/blog\/wp-json\/wp\/v2\/media?parent=588"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.consumerslaw.com\/blog\/wp-json\/wp\/v2\/categories?post=588"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.consumerslaw.com\/blog\/wp-json\/wp\/v2\/tags?post=588"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}How does a \u201ccharge-off\u201d affect my credit report?<\/strong><\/h3>\r\n\r\n\r\n\r\n
Are there tax implications when the bank lists “charge-off” my debt?<\/h3>\r\n\r\n\r\n\r\n
Seek help from a Consumer Lawyer<\/strong><\/h2>\r\n