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Does a Charged Off Account Mean the Creditor Will Sue Me or Get a Default Judgment?

man standing at brick wall with arrows either direction

After dealing with debt issues day in and day out for months, you have become somewhat desensitized to wondering what will happen next. You may have become used to the idea that your credit score has been wounded and used to the letters arriving with red ‘delinquent’ stamps on them. One day, however, you may realize that the sound of debt collectors has died down significantly. This level of sudden peace may raise some concern, only to be followed not long after by a letter informing you that the creditor has charged off your account.

The Creditor May Write Off Your Account After Six Months

For many consumers, a charge-off comes as a surprise as they may have been in the process of attempting to pay off the debt or just waiting for income to increase enough so they could. Months may have passed quickly though, and at around the 180-day mark, many creditors may routinely take this route. The charge-off allows them to write off the debt and wash their hands of your account—usually by selling it to a debt collections agency in a longstanding agreement where they buy large volumes of delinquent accounts for very little. In understanding the process, it becomes easier to understand why debt collectors are so darned persistent. In the off chance that someone with a charged off account does pay, even if it is a much smaller amount than originally owed, the debt collection agency still has the chance to turn what can be considered a good profit on their purchase.

Debt Collections Agencies May Eventually Sue

While some debt collection agencies may pursue you over the debt and then go on to file a collections lawsuit if they have no luck, most will continue to call and write and threaten, as well as offer a variety of settlement offers. Satisfying that debt could help your credit over the long run, as well as assuring that you will not be finding a process server at your door with a summons and complaint or being on the unfortunate end of a default judgment. Although such a court action can be reversed with the help of a skilled attorney, if not resolved quickly you could soon find your income garnished during each paycheck as well as checking accounts and property levied. Discuss your options with an experienced attorney from a firm like Fitzgerald & Campbell, APLC before experiencing any unpleasant repercussions.

Speak with an attorney from Fitzgerald & Campbell, APLC as soon as possible to examine your options. Our attorneys have decades of experience in serving clients as they navigate through challenging financial situations, to include student loan issues, bankruptcy, and other debt management processes. We are here to help! Click here to schedule a free 30-minute consultation, call us at (844) 431-3851, or email us at info@debtorprotectors.com

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