15 Feb I Was Told That A Charged Off Account Can’t Be Included In Bankruptcy.
Don’t take bankruptcy advice from a creditor, especially one you owe money to.
I hear stories from people that they are being told by creditors that something bad is going to happen to them because an account is being “charged off”. I have even heard from some people that when they told the creditor that they were going to file for bankruptcy so it didn’t matter, the creditor told them that a charged off debt can’t be included in bankruptcy.
This is simply not true.
A charge off of an account is an accounting mechanism by a creditor. It moves the account from one place on the companies balance sheets to another. It might give is some specific tax status for the creditor, or affect their overall holdings.
But how they list it in their records doesn’t give the account any special status, especially not to exclude it from bankruptcy, nor does it mean that you don’t owe the account anymore.
Charged off or not, it is a debt owed, and it can generally be included in bankruptcy.
The creditor’s representative is either ignorant, or they are intentionally lying in order to get payments and/or keep the client from seeking bankruptcy help.
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