Legal Question in Credit and Debt Law in Louisiana

what does it mean when a company (finance/seller) is going to "charge off" a debt? automobile loan, they said they were going to send it to credit bureau when I asked about making payment arrangements, told me to wait until April after they "charged it off" and I would not have to pay interest or penalties, just the principal....????


Asked on 3/19/10, 2:48 pm

1 Answer from Attorneys
Adam Lambert The Law Office of Adam S. Lambert

They have written it off as a bad debt. For them, it means they can write off the debt as a tax-deductible expense of their business. For you, it means that your credit record is that much worse. It does mean that the interest stops running and they likely will settle for much less than the total owed.

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Answered on 3/28/10, 11:38 am


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