Legal Question in Credit and Debt Law in Virginia

Re: Debts

Good question. Charge offs are accounting manneuvers which businesses

undertake by moving what once were

considered performing assets to the nonperforming side of the ledger, i.e, the company for whatever reason believes that it can no longer count on actually receiving payment on a particular loan or other debt. They may then sell the note/debt to a collection agency and report the charge off to the credit reporting agencies. (If such happens, the debtor is, however, in no way off the hook,

as the debt or defaulted loan remains fully collectible and some collection shark whose company has purchased the

note will undoubtedly come calling before very long.)

In your particular case, if your loan company has told you that they intend to hit you with a charge off, LOOKOUT, because, in addition to all of the above adverse actions, they could also indeed come and repo your vehicle to boot(to answer your last question).