What is The Difference Between Discharge and Charge-Off in Debt

What is The Difference Between Discharge and Charge-Off in Debt

The bankruptcy "discharge" is a court order that the creditors who are owed money, cannot do anything to collect those debts from the debtor. If the debt is marked "charge-off" then the debt is still the consumer's legal responsibility, even if the creditor has stopped trying to collect on it directly.
    • Related Articles

    • What Is The Difference Between a Will and Trust

      Wills May Turn One's Heirs Gray! Think about who distributes the money: a network of accountants, lawyers, appraisers, administrators, trustees, executors and…the courts. When does one get their money? ‘After’ everyone else gets theirs ‘After’ all ...
    • Can A Debt Obtained By Fraud Be Discharged

      No, fraudulent debts cannot be discharged. The US Supreme Court has held that § 523(a)(2)(A) of the Bankruptcy Code precludes a debtor from discharging a debt obtained by fraud, regardless of the debtor's own culpability.
    • What Practices Are Banned For Debt Collectors

      Regarding harassing or abusive tactics, debt collectors may not: Use or threaten to use violence or criminal means to harm a person, their reputation or property; or Use obscene or profane language; or Advertise someone owes a debt; or Advertise a ...
    • Verification of Debt Requires Exact Accounting

      This is not required for verification. Verification of a debt involves nothing more than the debt collector confirming in writing that the amount being demanded is what the creditor is claiming is owed; the debt collector is not required to keep ...
    • Business Debts, Bankruptcy and Debt Removal Secrets

      Bankruptcy is a custom affair with each situation being unique to that business. It all depends on the company, its debt amounts and continuation issues at hand. Does the business have other lines of credit that can be willingly reduced, without ...