Charged off on credit?????

Submitted by arlington81 on Wed, 12/10/2008 - 01:23
Forums

Hi everyone I am new to this forum...I recently had to file chapter 13. My question was I have a motorcycle on my credit report that reads as charged off. I initially included the motorcycle on the chapter 13, but took it off at the last minute. Again it is showing as written off now. I also never hear from the company anymore. Any help here?

Hi arlington
Since it is a Chapter 13 bankruptcy, the creditors cannot take over your assets. Under Chapter 13 bankruptcy, the debtor need to repay the outstanding debt through a repayment plan from the present income. Normally, the debt needs to be repaid within a period of 3 to 5 years. Now, since the motorcycle debt has not been included in the Chapter 13 bankruptcy, it is not covered for repayment and the creditor may soon ask you to repay the debt.

Wed, 12/10/2008 - 07:53 Permalink

If the motorcycle debt is showing as written off in your credit report, then it does not mean that you need not pay off the debt. The creditor has only marked the debt as a bad debt and has written it off, but they can ask you to pay off the debt any time if the SOL has not expired. The charge off listing will stay in your credit report for 7 years and six months from the date you make the last payment towards the debt. If the motorcycle debt is under repossession agreement, then the creditor can even take away your motorcycle to recover the debt. So it is always better to pay off the debt as soon as possible.

Wed, 12/10/2008 - 08:01 Permalink

Arlington, You will have to repay this debt. Many believe once something says charged off that they are no longer responsible to pay. This charge off is not due to your chapter 13 as it may appear to you but is listed as a charge off because you have went a certain period of time woth out paying a oayment. I would call and ask about repayment options and maybe even setting up some type of deal as if you pay it off they will update your account so it does not mess up your credit report and stasy on for 7 years.

Wed, 12/10/2008 - 12:00 Permalink

Yes, since your motorcycle debt is charged off, you need to repay the debt because as far as I know, auto loan comes under repossession agreement and if you do not repay the loan, the creditor may take back your motorcycle and sell it off to recover the debt. Charge off does not mean that you need not repay the debt. In fact if the SOL has not expired, the creditor can bring judgment against you and can even garnish your bank account and wage to recover the outstanding debt, if the debt is not under repossession agreement. You should immediately ask the creditor for repayment plan as Fireyone said and pay it off as early as possible.

Thu, 12/11/2008 - 10:45 Permalink

I have a debt, on my CR, that says 'charged off'. However......the debt was 'sold' to a CA. Both the OC and CA are on my CR. The OC was Cash Call. The CA is Global Acceptance. How do I go about 'dipsuting' the account with Cash Call...if I can?

Thu, 12/11/2008 - 11:31 Permalink

You may have a problem with disputing the claim sd chargers. They are both allowed to appear on your credit report because one is the original lender and the other is a collector. Even if a company charges off your debt they (original creditor) is allowed to report that debt for 7 years. Now if a new collector purchases the debt ,then the old collector is no longer allowed to report it but the new collector will be. I think it is arranged this way so if a person pulls their credit report they can see who the original lender is and who is presently trying to collect on the debt. It would give them information they may nee to repay the debt.

Thu, 12/11/2008 - 14:15 Permalink

SO.........even if I DO pay the CA, the debt stays on my CR for 7-10 years? I recently checked my CR. REALLY 'getting into' cleaning up my CR. I'll tell ya what...........about 3 or 4 items have 'dropped off' my CR. I think that's great!!

Fri, 12/12/2008 - 06:03 Permalink

Yes, since the debt has already been sold off to the CA by the OC, it will stay in your credit report for seven years and six months from the date you have signed the loan agreement. Even if you try you can only get the CA listing removed by not the OC listing. But if the SOL has not expired, you should pay off the debt by coming to a repayment agreement with the CA because if the CA brings judgment against you to recover the debt, it will badly affect your credit score.

Fri, 12/12/2008 - 11:17 Permalink

SD, the detb will stay on for 7 years. It can not stay on for ten because after 7 years of being listed on your report and it doesn't fall off you can then file a dispute and have the debt removed. You can only do this after 7 years. If it is a valid debt and only the original creditor and most recent debt collector are listed then it will be very hard to dispute and have it removed. If the debt is past SOL you could ask for debt validation from the debt collector trying to collect. If they can not validate it then they can not put any marks on your credit for it.

Fri, 12/12/2008 - 11:32 Permalink

WOW!! It's like a 'double-whammy' aqainst your CR. No..the SOL hasn't expired. I've tried to call the CA (again) who owns the loan. Just seems like I'm not getting anywhere with arrangements, etc.

Sat, 12/13/2008 - 03:34 Permalink

Actually Sd it is not as it would appear to be. It is in fact not a "double whammy". The easiest way to explain it is that it really is n=just like one mark. Both do not make your score go down . I would imagine that they have both listing on thier for your information in case you want to contact them most recent owner of the debt to make payment arrangements or to pay if off. How old is your debt SD? Are you worried that they will sue you for it? If so maybe we can help you figure out a route to go.

Sat, 12/13/2008 - 03:41 Permalink

FIREYONE........actually, they are CC debts. One CC ,the SOL has already expired ( I think..gotta look again.) The other ones says they were 'charged off', however......there is no information to whomever they charged it off to.

Sat, 12/13/2008 - 03:45 Permalink

Hi Chargers
Charge off does not necessarily mean that the account has been sold off to any collection agency. A creditor charges off an account if he thinks that the debt has become a bad debt. Even if the creditor charges off an account, he can sue you to the court to get back his money through garnishment at a later date if the SOL on the debt has not expired. He may also sell off the charged off account to any collection agency if he thinks that he will not be able to recover the debt.

Sat, 12/13/2008 - 10:46 Permalink

OIC!!! Goodness. I live in the state of PA. (I think?) In 'my' state Garnishemnts are not allowed, except for IRS Debts, Child Support, etc. But...no..the SOL has not passed yet, on these debts.

Sat, 12/13/2008 - 10:50 Permalink

That doesn't mean they can not take you to court and get a judgment verdict. I know for a fact that they can here in PA. Had this happen to my sister. They put a judgement against her since she was on social security disability they could not collect. I am not sure if the judgement is still there. Probaly not it has been a really long time.

Tue, 12/16/2008 - 18:37 Permalink

Only wage garnishment is not allowed in Pennsylvania. But if the Statute of Limitation in your state has not expired, the creditor can sue you to the court and bring judgment against you to garnish your bank account. Now if the creditor brings judgment to garnish your bank account, your bank account will get debited whenever there is credit in your account and this will continue so long as the debt is repaid in full.

Wed, 12/17/2008 - 09:58 Permalink

i have to back you on this one fireyone, the only thing that is garnishable in the state of pennsylvania is child support and taxes.

Wed, 12/17/2008 - 10:26 Permalink

Yes I am aware of the only things that are garnishable in PA are the taxes and child support. This was a judgement for a defaultede car loan. They could put the judgement against her but not attach any wages at all, or the bank acccount since the only source of income here was the Social Security benefits.

Wed, 12/17/2008 - 11:12 Permalink

I live in PA, too. From what I understand, a garnishment cannot come out of your bank account, either. If I'm wrong on that, please...someone inform me. I know PA doesn't allow Wage garnishments.

Thu, 12/18/2008 - 04:14 Permalink

SD, Here this may make you feel better...
No wage attachment in this state except for taxes and child support.

The Pennsylvania Department of Revenue is authorized to garnish wages without obtaining a court order for collection of unpaid state taxes. The Department will first notify taxpayers of its intent to contact their employers to begin withholding. If a taxpayer fails to resolve the tax liability, the taxpayer's employer will be ordered to begin garnishing wages and make payments to the Commonwealth. Employers may retain up to 2% of the amount collected to compensate for costs of additional bookkeeping.

Thu, 12/18/2008 - 15:26 Permalink
Hello (not verified)

I had a bank take money out of account of mine from a supposed loan ($1495) from 7/2001. I filed banruptcy in 5/2001 so I couldnt see how I could have had a loan. or why i would have applied for one (the bank changed hands 3 times during that time also)
I am waiting for actual contract papers from this loan.
I found a 2003 credit report witch states one of the previous bank names and it states I had a line of credit in 2000 for the same amount $1495. So this must be it. On 2003 credit report is says charged off as bad debt/ profit and loss write off. since this should have been in my bankruptcy i can do an ammentment and get it rolled in there if necessary.
Someone mad a mistake either my lawyer forgot to throw it in or the bank when receiving a letter regarding my bankruptcy decided to write it off. I see it was written off in 5/2001 same month i filed bankruptcy.
and now it haunting me.

anyone know where i can also find statute of limitations for New York State as far as bad debt?

Tue, 02/10/2009 - 13:38 Permalink

Statute of Limitation for all types of debt in New York city is 6 years. The SOL starts from the date of the last missed payment towards the debt. You can ask for debt validation and the creditor has to provide you with a copy of the original contract. If they cannot provide you with the original contract form, you can dispute it with the bureaus.

Wed, 02/11/2009 - 11:49 Permalink
big dog (not verified)

i have a motorcycle that my bank charge off but i have the pink slip to the motorcycle with no lean on it what can i do

Thu, 05/14/2009 - 01:16 Permalink
rodknocker (not verified)

ive been out of work now for a yr,,i bought an 05 harley new in 05,,but i havent paid on it in a yr,,i was checking my credit today on line,,and it said charge off written off,i was wondering a few things first of all explan charge off written off,,and i no longer live in the state where its registered,,can they block the bike from being registered,,and can they look up my social securuity number and find out where i work,cause i have nothing in my name where i live now,,the balance on the bike was 8k,,and i paid around 14k thus far,,btw it was trough a federal credit union,,thanx Rod.

Wed, 06/03/2009 - 04:55 Permalink

Hi rodknocker,

A debt account is listed on your credit report as "charged-off", when the creditor considers the account as a loss for his company. He either sells it or assigns it to a collection agency, who continues with the collection practices. A account is charged-off if you do not make the minimum payment continuously for 6 months.

A charge-off will negatively affect your credit score. A charged-off account remains on your credit report for 7 years, from the day it was charged-off. The only way to remove charge-off before the 7 years time period is to pay the balance in full. Once you pay it will appear on the report as "Paid Charge-off".

Can you tell me why you paid 14k for a balance of 8k?

Wed, 06/03/2009 - 08:19 Permalink
Anonymous (not verified)

well the new price of the bike was 20k finacing and all,,so i have paid around 14 k of the 20k,,but it now shows a balance of around 8k,,im guessing they have put all kinds of fees and penalties on me,,,i have contacted them a couple mos ago,,and tried to work something out with them,,but they said they wanted the total payoff or the bike,,so atleast i tried,,thats why i asked you the other questions concerning tagging my bike every year,,can they stop that in anyway,,im not really concerned about my credit at this point and time,,im just trying to hang on to my only transportation so i can get to work,,,,btw can my bank find mean by looking my social security number up by way of tracking my employment,,i have a few questions that i would like answered thanx Rod.

Wed, 06/03/2009 - 20:47 Permalink