15 Apr Bankruptcy and Charge-Offs
You can still file bankruptcy on a charged-off debt. Any statement otherwise violates federal law and can put money in your pocket. Please, PLEASE, immediately write down all details of the call and contact your attorney.
I must repeat the February 15, 2007 post of my colleague, Susanne Robicsek. A charge-off is a creditor’s accounting entry for the IRS to recover on a bad debt loss. It does not affect your obligation to pay. In fact, only a bankruptcy can change your obligation (or, rarely, a successful negotiation or litigation, or a statute of limitations) – the exact opposite of what you were told.
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