I have been making arrangement to pay some of my creditors, but cannot afford to pay them all, I was in a debt management program but the payments were to high.
Steve, I recieved a letter yesterday from Chase, statiing that my account is scheduled to charge-off. However, it was also stated that even if they write off my account, they will continue to contact me for payments or it may be sent to a debt collection. So what is the purpose of the charge-off. It they are going to continue calling me every day?
The charge-off issue confounds most people. They think it’s forgiveness of the debt. It’s not. It’s just an accounting function that says Chase can’t report the loan as a good asset on their books after a certain time and thus has to “charge it off.” It has nothing to do with you continuing to owe the debt.
After charge-off Chase may sell your debt as part of a larger bucket of bad debt to a new owner. The new debt buyer can attempt to collect or sue you for payment.
Please post your responses and follow-up messages to me on this in the comments section below.