Legal Question in Credit and Debt Law in Virginia

If a creditor has charged off a debt, & then another company "purchased" that debt, am I legally obligated to the new company to repay any/all of that debt, even if I never entered into any kind of contract or agreement with that company? Am I legally able to only repay the amount they purchased the debt for, or am I still legally responsible for the entire original debt? Why?


Asked on 12/07/10, 3:05 am

1 Answer from Attorneys
Michael Hendrickson Law Office Michael E. Hendrickson

"Charging off a debt" is merely a bookkeeping maneuver by a company

on its ledger sheets reflecting the company's assets and debits and has no legal significance whatsoever. And, therefore, if you legitimately owed this debt to the original company, then you would also owe it to the new company which purchased it.

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Answered on 12/12/10, 6:36 am


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