If a Credit Card Company Charges Off a Debt Can They Still Sue You? I Was a Victim of CMS and Brad Daley. – Jay

“Dear Steve,

I also was a victim of CMS and Brad Daley. I was sued and got a judgment against me from B/A.

My question is, If a credit card company writes the debt off, can an attorney still sue you? Looks like if the debt was written off the IRS would write off the total for the cc company and they’re would be no debt owed.

Now I have another attorney in another state sending me letters that I did answer that I disputed.

Thank you


Dear Jay,

I know, it’s totally crazy but a debt must be charged off in accordance with the rules put forward by the Office of the Comptroller of the Currency. A charged off debt is reported to the IRS and you owe taxes on the forgiven debt. But the debt is actually not forgiven nor not collectible.

A charge off is an accounting function and does not mean the debt is still not legally collectible. The original creditor or a new creditor that buys the debt may sue you to enforce the debt contract and to collect the debt.

Please update me on your progress by

You are not alone. I'm here to help. There is no need to suffer in silence. We can get through this. Tomorrow can be better than today. Don't give up.

19 thoughts on “If a Credit Card Company Charges Off a Debt Can They Still Sue You? I Was a Victim of CMS and Brad Daley. – Jay”

  1. Steve,

    I actually think if everyone did a little more studying of the monetary system and how it works, they would come to the understanding that the banks never gave you a loan nor do they say in any of their paperwork that you sign that they loaned you any money!!  The banks will never lie, they tell you in your mortgage papers that you own the property and that you have “the right” to mortgage, grant or convey, not that you HAVE to!!  They give you your deed BEFORE the alleged loan is paid off…would a private investor do that??  They never engage in signing your mortgage or your promissory note thereby making it a unilatteral adhesion agreement under contract law.  How can they provide a Satisfaction of Mortgage when they never signed the mortgage??   Now when you have a “charge off” debt you can challenge them by requiring them to validate the debt. Understanding how it all works gives you the power that they don’t want you to have to fight them legally!!  Interesting how once you know the rules of Monopoly, it is actually a fun game to play!!


    • Monopoly is a game played with fake houses and fake money. Real people have lost real houses by attempting to “eliminate” their mortgages using these same bogus arguments.

      • Charles,

        The only thing bogus is the banks documents!  You need to get educated, it isn’t a scam.  I got my house free and clear, the bank couldn’t sign off fast enough!  They know when you know and then they know when to cut their losses!  It ain’t like they didn’t make a TON of money, MILLIIONS, off of monotizing your note!!

        • Barbara, I do not need to “get educated” on a subject that I have followed professionally for many years. Believe whatever you like. The fact remains that there are people sitting in jail for promoting “mortgage elimination” schemes that relied on the exact same arguments you are referencing. (Cf. “The Dorean Group” for starters.)

    • Barbara, 1) you are clueless and B) what you are describing is the Hess Kennedy scam that was shut down a few years ago and it hasn’t worked for all of the copy cat crooked attorneys who jumped on the bandwagon either.  That scam may work on occasion with some 3rd party collectors but fails miserably when the original creditor files a lawsuit. 

      The process you are talking about is highly unethical, extremely risky for consumers but very lucrative for the shark attorney charging upfront fees for this service.  Shame on you for even thinking those thoughts out loud.  Go directly to Jail, do not pass Go, do not collect $200 for passing Go….while you’re at it “Go” get a real job !!

      • AA,

        You are the clueless one!!  Do you not read the papers, watch the news and study things online???  Maybe you might want to start by reading your mortgage docs, specifically Borrower’s Covenants!  You could learn alot of you read!!  And if it is such a scam, how is it that over 100,000 people in Florida alone in the past 2 years have been successful in gaining Quiet Title to their property by forcing the bank to verify that a true money loan took place, and they can’t!  I suggest you reseach the following to get started on your learning path:  Bankruptcy of United States 1933; Federal Reserve System; HJR 192/Public Law 7310; Strawman account/Pre paid treasury account; red or black #’s on backside of social security card; and finally, go to YouTube and watch the 1hr and 47 min play on the Creature from Jeykell Island!!  Get Educated!!  What is so unethical about asking some to validate a claim if I suspect I have been defrauded???  NOTHING!!  The unethical one is the party claiming I owe them something they cannot prove!!  When I asked my bank to verify, they couldn’t, wouldn’t and didn’t.  I have a Forensic Audit that shows the fraud violations of which there were 38 and a securitization audit which shows the break in the chain of custody and how they monotized my note with my social security number!  But I guess you wouldn’t understand all of that as you don’t study and you don’t get the monetary system and how it works at all; but the banks got it and couldn’t sign my release fast enough!!

  2. Steve,

    This is interesting, but my understanding is when a bank charges off a debt, they  actually get the tax credit so therefore they cannot come after you to collect on the debt once that has happened.  True???


  3. But if you paid income tax on your 1099c, and the debt was still collected /paid u would have paid the debt owed plus income tax, that doesn’t seem to make sense?


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