Account "Deemed As Uncollectible"?

[john416]

Sorry, another newbie question, but didn't get any clarity after searching.

 

I've got a MyFico alert for a credit card account, saying "Account Is Deemed As Uncollectible By The Creditor And Written Off As "Bad Debt" Or "Loss".

 

My credit score actualy rose 1 point as a result of that (LOL). So does this mean the OC completely wrote off the debt as a loss for tax purposes, and I'm off the hook, or they still may sell the account to a CA?

[ManofB]

They wrote it off but you are still on the hook. They will sell it to a CA. I'd contact them to see if you can make arrangements directly with them before a CA gets their hands on it

[BlackKnight1983]

Sorry, another newbie question, but didn't get any clarity after searching.

 

I've got a MyFico alert for a credit card account, saying "Account Is Deemed As Uncollectible By The Creditor And Written Off As "Bad Debt" Or "Loss".

 

My credit score actualy rose 1 point as a result of that (LOL). So does this mean the OC completely wrote off the debt as a loss for tax purposes, and I'm off the hook, or they still may sell the account to a CA?

 

 

They wrote it off but you are still on the hook. They will sell it to a CA. I'd contact them to see if you can make arrangements directly with them before a CA gets their hands on it

 

John is the gentlemen that's 170k in the hole, and unable to file BK.

 

http://creditboards.com/forums/index.php?showtopic=535705

 

Yes, you're still on the hook. This is normal, the OC will Charge Off the debt, and set the balance owed to $0. You might have got a small boost to your score (as it looks like you owe less money), but this will only be temporary. A junk debt buyer will purchase this debt and add it to your reports as a collection, which will result in a drop.

[JunkBuyersWorstNightmare]

 

Sorry, another newbie question, but didn't get any clarity after searching.

 

I've got a MyFico alert for a credit card account, saying "Account Is Deemed As Uncollectible By The Creditor And Written Off As "Bad Debt" Or "Loss".

 

My credit score actualy rose 1 point as a result of that (LOL). So does this mean the OC completely wrote off the debt as a loss for tax purposes, and I'm off the hook, or they still may sell the account to a CA?

 

 

They wrote it off but you are still on the hook. They will sell it to a CA. I'd contact them to see if you can make arrangements directly with them before a CA gets their hands on it

 

John is the gentlemen that's 170k in the hole, and unable to file BK.

 

http://creditboards.com/forums/index.php?showtopic=535705

 

Yes, you're still on the hook. This is normal, the OC will Charge Off the debt, and set the balance owed to $0. You might have got a small boost to your score (as it looks like you owe less money), but this will only be temporary. A junk debt buyer will purchase this debt and add it to your reports as a collection, which will result in a drop.

 

 

+100.

[john416]

Thank you!

Wishful thinking on my part I guess.

 

Knowing my situation (link above, 170K in debt, etc), is it still better to deal with OC? It's from bank that I owe in total ~ 100K, is it not going to be "awakening the giant"?

[john416]

I should add that amount itself is ~ $2000, 100K is in total all accounts with bank

[mk_378]

The usual "informal BK" strategy is to not pay anyone and stay low and hope that you don't get sued. Time is on your side because as debts get sold around, documentation is often lost.