If you have been notified that a debt that you owe is being charged off, you may be under the impression that you are no longer obligated to pay the debt. Unfortunately, this is often not the case. Even more unfortunate, the obligation will continue to be reported to credit bureaus.
Charge offs are not exclusions are exceptions to debt. Instead they are merely accounting measures taken by a creditor in order to balance the books. If a debt is deemed to be uncollectable, it may no longer be considered an asset. Because of this, the debt may be “charged off.”