Myth!

Fact: “Charged off” is just an accounting label—not debt forgiveness. According to MSH Associate Matthew Martin who focuses on bankruptcy and consumer law, a debt can still be collected, subject to federal and state-law limits, including statutes of limitations and collection conduct rules. A “charged off” consumer debt can appear on your credit report for up to seven years after the last activity on the account.

You have rights when contacted by a debt collector. Be sure to consult with an attorney before providing any information or agreeing to payment. Contact MSH—we’re here to help.