What is a charge-off?

A charge-off is a term typically used in consumer debt defense law when a creditor has declared a debt to be uncollectible. In Kansas, a charge-off happens when a borrower fails to repay their debt for more than 180 days. This type of occurrence is reported to the credit bureaus and can have a significant impact on the borrower’s credit rating and ability to borrow money in the future. On the other hand, some consumers might be able to work out a payment plan with the creditor or even negotiate a settlement with the lender to avoid the charge-off. It is important to note that if a charge-off occurs, it is still the responsibility of the borrower to pay off the debt, even if the charge-off has been reported to the credit bureaus. Although the creditor may be unwilling to work out a payment plan, the debt does not just go away. The borrower is still responsible for repaying the full amount, plus any interest that has accumulated over time.

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What is a charge-off?

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