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tf0075 · Oct 30, 2009, 03:36 PM

The bank we have credit card with, didn't send a notice that account was charged off? Received letter from lawer stating to contact them with in 30 days to verify debt. Its regarding a judgement. What do I do? We were never given an opportunity to make right with bank. They never sent letter stating that if we didn't contact them by a certain date to make arrangements that it would be charged off? What should I do?

Fr_Chuck · Oct 30, 2009, 03:52 PM

Charged off does not mean anything except for accounting purpose on the bank and no you are not notified since it has no effect to you. The "charge off" is a tax status of the debt. You still owe it and it can be collected if still within the Statue of Limitation.

Now you have gotten a letter saying they will sue you and get a judgement, that is where you need to make arrangements.

*** PS you had all the months you were not paying to make arrangements, you don't need a gold plated invitation to pay your debts

tf0075 · Oct 30, 2009, 07:03 PM

I just received a letter from lawyerregarding a judgement. We never received a notice that it had been sent to collections. We have had some ruff times financially and we have had to use the money we would have paid our credit cards to pay our mortgage.
Now that this account is with a lawyer is there a chance that we will be able to settle or it we got the money to pay what is owed that they will dismiss and not go any farther? I am responsible and knbw I have debt to pay. I'm not trying to get out of it. I just want to know if there's another way of handling it.

Fr_Chuck · Oct 30, 2009, 07:36 PM

If you can pay the debt in full, sure they will settle, they may even settle for a little less than the full amount if you can write them a check.

So you always ask, but get it in writing, if you don't have it in writing, there is no legal agreement and they can change terms at any time

tf0075 · Oct 30, 2009, 09:29 PM

If I file bankruptcy can lawyer still serve judgement? Lawyer doesn't know I have received letter from them.

ScottGem · Oct 31, 2009, 03:51 AM

If you file for bankruptcy, it puts a hold on all debts until the bankruptcy court rules on what and how much you have to pay back from your assets.

ScottGem · Oct 31, 2009, 04:29 AM

I've merged all your threads since they deal with the same issue. Please do not start a new thread for follow-up. Use the Answer This Question options instead.

As Chuck said, a Charge off is an tax/accounting process and has no affect on you. I can't believe, however, that the bank made no attempts to collect on it before turning it over to a collection agency.

But now that it has you have received a letter giving you a chance to work out something before they initiate litigation. So you contact them and try to work out a settlement or payment plan.

If you feel you need to file for bankruptcy, then contact a bankruptcy attorney.