When a creditor writes off a debt as a loss — but you may still owe it.
A charge-off happens when a creditor decides a debt is unlikely to be paid (often after ~180 days late) and records it as a loss for accounting. It does not erase the debt — you can still be pursued, and it usually stays on your credit report.
“Account status: Charged off. Balance: $1,240.”
Main AI reads the notice or agreement and explains where a term like this affects what you owe — and what your options are.
Analyze my document free →The debt still exists and is often sold to a collector, who may then contact you. A charge-off is a serious negative on your credit but also a moment to check the statute of limitations and to consider a validation request before paying a collector.
See this in your own document: run a free analysis — findings quote the exact language.
“This account was charged off and sold to a third-party collection agency.”
After a charge-off, the collector who contacts you must still validate the debt — and the age of the debt may put it past the statute of limitations for a lawsuit.