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Bank of America Charged Off My Debt By Mistake. – Jennifer

“Dear Steve,

we have 2 account s with Bank of America. I had them on payment programs. Our car was broken into and a checkbook was stolen (with other items) . The b of a accounts were set up to deduct payments the last day of every month. The last payment was returned by a frozen account on the old bank info they had. I called, gave the NEW checking account numbers to draft from.

Somehow, the person on the other end didn’t enter it right. Just got a letter in the mail stating the accounts have now been CHARGED OFF on is 35k line of credit, and one a 15K mastercard. They told me there is no way to get them back to B of A, with the new payment info, and that they’ll be assigned to a collection agency by friday.

I am freaking out here. Not wanting to deal with an agency, as I have on other charged off accounts and they are not nice, and threaten all sorts of mean actions. We own a home, whcih I am concerned about. even though we have negative equity. Please help. Anyhelp is appreciated. I’m in tears!

Is there hope of getting the accounts back to b of a instead of a collection agency? after being charged off. will we be sued? do they HAVE to work on a resonable payment plan with us?


Dear Jennifer,

I can’t think of a single time that a charged off debt was taken back by the original creditor. Once they have written it off their books and sold it, as the typically do with charge offs, they won’t or can’t put it back on the books as a performing loan.

This situation certainly is not nice but it is also not fatal. I’m mildly surprised that B of A didn’t make more of an effort to contact you when the ACH draft didn’t go through. But oh well, it is what it is.

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You can attempt to make repayment arrangements with the company that is now going to handle this debt but you should also go and talk to a local bankruptcy attorney and have a talk about your situation. You absolutely need to do this. I’m serious.

Bankruptcy doesn’t mean you lose your house. In fact, the line of credit may be secured by the house and a bankruptcy might be able to strip that loan off the house.

This bell has been rung and there is no way to un-ring it. We’ll just have to move forward instead. Most of all, don’t be scared. This situation will get resolved one way or another and you are not going to jail, nobody is going to come and knock on your door and none of this makes you a bad person.


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.

About the author

Steve Rhode

Steve Rhode is the Get Out of Debt Guy and has been helping good people with bad debt problems since 1994. You can learn more about Steve, here.

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