Q: What does it mean to have an account charged off? If this happens on an account does it mean you continue to pay?
A: When a creditor charges an account off, it does not mean the debt goes away. A creditor will typically turn it over to a collections agency and they will begin pursuing payments from you. The important thing to remember is just because an account is charged off does not mean the debt goes away.
Another thing to remember is generally the statute of limitations for how long a creditor (or anyone who buys the debt from the creditor) has to sue to collect the debt from you starts from the time the last payment is made on the account or some type of new arrangement is made to make payments.
If you have any doubts seek advice from a debtors/bankruptcy attorney in your area. Most will offer free consultations and it does not mean you will have to or will be pushed into filing bankruptcy. Remember bad things happen to good people all the time.
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