Legal Question in Credit and Debt Law in California
can a creditor sue for an old credit card acct. that was charged off in the amt. of 659 dollars and reopend and charged interest and penalities for the amt of 3526? this credit card originaly had a 300 dollar limit. and is 3 and half years old.
Asked on 3/01/11, 6:00 pm
2 Answers from Attorneys
Joe Marman
Law Office of Joseph Marman
The statute of limitations is 4 years from the last time you paid on the bill.
They can still come after you even though the amount has been charged off.
Answered on 3/02/11, 1:24 pm
Mr. Marman is correct. A charge off allows them to deduct the receivable from their balance sheet and treat it as a loss for tax purposes. It has nothing to do with your liability. If they collect from you, they will have to treat it as income to offset the prior claim of a loss. Again, that's between them and the tax man, not you.
Answered on 3/04/11, 9:13 am
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