If you fall very far behind on your credit card payments, or any other kind of debt for that matter, your debt might appear as having been charged-off on your credit report. A charge-off occurs when you are at least 180 days behind on your credit card payments, and the bank decides that the debt is no longer collectible and decides to write it off as a loss. However, this does not mean you no longer owe the debt. You are still 100% responsible for the debt. But what do you do and what should you expect?
The debt will have to be repaid.
At first, you might think that it is a good thing that your debt has been charged-off and you might even think that you no longer owe the debt. Unfortunately, when your bank decides your account is uncollectible, that is simply an accounting term. It in no way affects your liability for the entire debt owed. However, there is one caveat. The bank can only collect on the debt until the statute of limitations expires. In Florida, the statute of limitations for a credit card debt is five years. Continue reading →