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During the course of my debt settlement practice I have heard the same question from potential clients over and over.  Do I still owe a credit card debt that is listed as “charged-off” on my credit report?  The answer is “yes”!  People are sometimes under the impression that because a debt is listed as charged-off on their credit report, they no longer owe it.  This couldn’t be further from the truth.  What charge-off means is that the original creditor or lender is no longer showing it as an asset on its balance sheet.  Federal banking laws require them to stop showing past due balances as assets after a certain period of time.

After a debt is “charged off” by a creditor or lender, often they sell the debt to debt buyers who then try to collect it from you.  Collection agencies that try and collect on a debt are in my opinion,  relentless and will harass you mercilessly.  This can go on for several years depending on the statute of limitations in your state.  If you have debt that has been charged-off, you should contact a debt settlement attorney in your area.  They may be able to negotiate a settlement on your behalf and definitely end the harassing phone calls.