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  1. #1
    Join Date
    Dec 2008
    Posts
    27

    Default Sued on Charged Off Debt

    My question involves collection proceedings in the State of: Washington

    My credit report says that a credit card debt of mine has been charged off. On my report it says the account is closed but still shows the debt amount. I will also note that there are multiple charge offs under that same bank debt.

    Now I am being sued. Plaintiff is shown to be the bank I opened my credit card with.

    What are my options if any? Is there anything that can be done to combat this or am I lost without hope?
    Needless to say I have not the money to repay.

  2. #2
    Join Date
    Oct 2006
    Posts
    16,474

    Default Re: Sued on Charged Off Debt

    Quote Quoting ai2tman
    View Post
    My question involves collection proceedings in the State of: Washington

    My credit report says that a credit card debt of mine has been charged off. On my report it says the account is closed but still shows the debt amount. I will also note that there are multiple charge offs under that same bank debt.

    Now I am being sued. Plaintiff is shown to be the bank I opened my credit card with.

    What are my options if any? Is there anything that can be done to combat this or am I lost without hope?
    Needless to say I have not the money to repay.
    How old is the debt? When is the last time you paid anything towards it?

  3. #3
    Join Date
    Dec 2008
    Posts
    27

    Default Re: Sued on Charged Off Debt

    Last payment was a year and a half ago

    Quote Quoting adjusterjack
    View Post
    None of that means anything. You still owe the money. A charge-off is an accounting thing that allows the lender to take a tax write-off for a bad debt. The lender can still pursue the debt and if the lender collects it pays the tax on the amount collected in whatever year it was collected.



    If the lawsuit was filed within 6 years of your default (the statute of limitations) then the lawsuit is good to go and the lender is almost guaranteed to get a judgment against you.

    Options?

    Bankruptcy is one option that comes to mind. Call around to bankruptcy attorneys for fees. If you don't have the money to pay an attorney up front google do-it-yourself bankruptcy and you should be able to find forms and instructions.

    How much money are you being sued for?
    For $2600

  4. #4
    Join Date
    Mar 2013
    Posts
    18,340

    Default Re: Sued on Charged Off Debt

    Well, $2600 is hardly enough for the consequences of bankruptcy.

    Do you have a job? One that's worth keeping? If yes, call the lender and see if you can get a payment plan that's equal to the amount that they can garnish from your wages. If you agree to a voluntary payroll deduction arrangement with your employer you might be able to avoid a judgment on your record. Otherwise they'll get the judgment and garnish your pay anyway.

  5. #5
    Join Date
    Mar 2013
    Posts
    18,340

    Default Re: Sued on Charged Off Debt

    My credit report says that a credit card debt of mine has been charged off. On my report it says the account is closed but still shows the debt amount. I will also note that there are multiple charge offs under that same bank debt.
    None of that means anything. You still owe the money. A charge-off is an accounting thing that allows the lender to take a tax write-off for a bad debt. The lender can still pursue the debt and if the lender collects it pays the tax on the amount collected in whatever year it was collected.

    Now I am being sued. What are my options if any? Is there anything that can be done to combat this or am I lost without hope?
    If the lawsuit was filed within 6 years of your default (the statute of limitations) then the lawsuit is good to go and the lender is almost guaranteed to get a judgment against you.

    Options?

    Bankruptcy is one option that comes to mind. Call around to bankruptcy attorneys for fees. If you don't have the money to pay an attorney up front google do-it-yourself bankruptcy and you should be able to find forms and instructions.

    How much money are you being sued for?

  6. #6
    Join Date
    Jul 2018
    Posts
    2,745

    Default Re: Sued on Charged Off Debt

    Quote Quoting ai2tman
    View Post
    What are my options if any? Is there anything that can be done to combat this or am I lost without hope?
    Needless to say I have not the money to repay.
    I assume you meant you don't presently have the ability to pay the debt in full. That being the case, you have at least the following options:

    1. File bankruptcy.
    2. Try to settle for a reduced lump sum that you can afford to pay.
    3. Try to settle for a monthly payment plan.
    4. Try to defend against the lawsuit (although nothing in your post suggests any basis for a defense, but you can, of course, force the plaintiff to meet its burden of proof).
    5. Run, hide, and/or bury your head in the sand.

    Also, please answer "llworking's" question about how old the debt is.

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