This question is a common issue we confront in our debt settlement practice. A client starts going through debts owed and says we don’t need to worry about a particular debt because it has been written off or charged off. As the following article discusses, there is a common misconception about a charged off account.
https://www.creditcards.com/credit-card-news/written-off-statute-limitations-debt-1580.php
While the bank may have charged off or written off the debt as a loss, that doesn’t mean they have forgiven the debt. As far as they are concerned, you still owe the debt. The bank has just written it off as a loss in its books. But that won’t keep the bank from either trying to collect the debt or selling to a third party that will seek to collect. If you have delinquent debts on your credit report that are showing as charged off, don’t be lulled into the common misconception that the debt has been wiped away. If you are confused by this, it may be in your best interest to speak with an attorney experienced in consulting with consumers regarding unsecured credit card debt. At least then you will know the truth as well as your options.