FAQ – What is a Charge Off?
A charge-off is an accounting term used for when a creditor writes off or charges-off a debt that they are unable to collect on. Creditors typically charge-off a debt if there is no payment on the account for more than 180 days.
A charge-off is an accounting procedure for tax purposes, used by the creditor, where an uncollected debt or charge-off is reported as a loss for the creditor. However, this does not mean the debt is forgiven.