Can a judgement be placed against me for a credit card bill that has been charged off and closed?

UPDATED: Jan 5, 2013

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Can a judgement be placed against me for a credit card bill that has been charged off and closed?

Asked on January 5, 2013 under Bankruptcy Law, Georgia


M.D., Member, California and New York Bar / FreeAdvice Contributing Attorney

Answered 10 years ago | Contributor

A judgement can be placed against a debtor for a charged off debt. That's because a "charge off" is basically a creditor's way of informing a credit reporting agency that this is a bad debt. The fact is that in such an event, a creditor can no longer hold a debt as an "asset" on its books (money owed is considered an asset for the creditor) because a debtor has defaulted on payment.

That having been said, a charge off does not negate the fact you still owe the creditor the moneyin question. Accordingly, your creditor may hire a third party collection agency to collect from you or your creditor may simply sell your debt to a third party, who in turn then has the legal right to attempt to collect from you. Either of these situations can include suing you in court and obtaining a judgement.

Note: Every state has a "statute of limitations"'; this is the timeframe in which a creditor can sue on a debt. Depneding on the state, typically a creditor has between 3-10 years after a debtor defaults, to bring suit. After that time, the statute has run so a creditor is time barred from pursuing legal action against a debtor (although the debtor still technically owes the debt).

IMPORTANT NOTICE: The Answer(s) provided above are for general information only. The attorney providing the answer was not serving as the attorney for the person submitting the question or in any attorney-client relationship with such person. Laws may vary from state to state, and sometimes change. Tiny variations in the facts, or a fact not set forth in a question, often can change a legal outcome or an attorney's conclusion. Although has verified the attorney was admitted to practice law in at least one jurisdiction, he or she may not be authorized to practice law in the jurisdiction referred to in the question, nor is he or she necessarily experienced in the area of the law involved. Unlike the information in the Answer(s) above, upon which you should NOT rely, for personal advice you can rely upon we suggest you retain an attorney to represent you.

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