Does A Charged-Off Account Remain Collectible Even If It Has Fallen Off Of A Credit Report?
Once an account has been charged off and is off your credit report, can you still be sued, have wages garnished, or have liens put on your property? Even though the term “charge-off” means that the creditor or lender has written off the debt as a loss, this does not necessarily mean that the debt is forgiven. Depending on the type of debt and on your particular state laws, the lawsuits, garnishments, and liens you refer to are all actions that may be allowed in some collection processes on some types of accounts. These types of actions, if completed successfully by the collector, would show up on your credit report in the “Public Records” section. Even though you may have had good-credit intentions, the use of these types of public actions may be viewed by future creditors as a sign that you cannot or even will not pay your debts as promised. Because of this, it might be worthwhile for you to contact the creditor on this account and discuss the possibility of setting up a new payment p
