Can a credit company which charged off my unsecured debt (found?

Can a credit card company which charged off my unsecured debt (found this on my credit report) now turn around and sue me to pay them now that it is charged off and now and threaten a default judgment...I ended up signing a stipulation with their attorney reps, but I thought this was unsecured credit? I live in Florida if this makes any difference...doesn%26#039;t unsecured mean UNSECURED??please give me a worst case scenario if I can%26#039;t pay...thank you

Can a credit company which charged off my unsecured debt (found?

Good question that would be one for an attorney, or accountant.

Can a credit company which charged off my unsecured debt (found?

Florida is notorious for granting judgments to companies that use illegal means to sue a person. I have a judgment against me from 13 yrs ago in Florida that should have never been granted in the first place. Anyway I am pretty sure that if they %26quot;charged-off%26quot; the debt there is nothing more they can do to you other than continue to report it to the credit bureaus for 7 yrs.

Can a credit company which charged off my unsecured debt (found?

I%26#039;m not a lawyer, but having been through the exact same situation when I was starting out with credit as a wee youngster in my twenties, I can tell you the answer is AB-SO-LUTE-LY!

A company charges off bad debt as an accounting maneuver. Not sure of the specifics, but it comes down to the fact that they can%26#039;t carry bad debt on the books forever. They charge off whatever they charge off in a given period and that gets it off their books and off their balance sheet, because they realize they%26#039;re not likely ever to see the money.

Never, never confuse accounting practices with debt forgiveness. Just because they %26quot;charge off%26quot; your debt does not mean you are released from the obligation. They retain the right to liquidate this debt, if they can. (If they are successful at doing so at some point in the future, then the %26quot;chargeoff%26quot; is essentially reversed in their books in some future accounting period.)

All %26quot;unsecured%26quot; means is that if you don%26#039;t pay, they have no real means of enforcing a judgement against you, like they would with a secured debt. We all know what happens when someone doesn%26#039;t pay their mortgate. The bank forecloses, someone gets a great deal on the house at auction, and the bank gets its money. Most of it, anyway, usually. Without a pledge f cash or property to secure a loan, the credditor is at the mercy . All they can do is try to cajole you, bully you, threaten you, scare you into paying. Or they can decide it isn%26#039;t worth the time and money they%26#039;d spend doing so and just forget about it.

More likely, they will sell your obligation, along with many others, for pennies on the dollar to another outfit -- a bank, a credit collection agency, etc. -- who then becomes your creditor and they begin tacking on fees and interest while they badger and pester you to pay. You can continue to refuse to pay, but they can continue collection efforts indefinitely, including renewing the entries on your credit reports every year. Everyone knows that after seven years, they have to remove the entry from your credit report, right? Yep. But if they (or a successor company) make one demand a year for the rest of your life for you to pay that obligation, and you refuse or do nothing, they can place a NEW record of the debt in your report. The original will fall off after seven years, but the new one has a new seven year life.

The bottom line is the debt isn%26#039;t going away. You can ignore it and very likely get away with never paying it, but it may cost you the ability to get any other credit, including car loans, mortgages, etc. Or at least it may cost you in the form of higher interest rates for those loans.

Bottom line? Get the stuff paid off, it%26#039;s not going away. Negotiate it down. Even if you pay less than the full amount, if they agree to accept less than the full amount and discharge the debt, then it%26#039;s legally cleared. If they %26quot;charge it off%26quot; it%26#039;s not going anywhere, they%26#039;re simply telling you and anyone reading your credit report that, in their opinion, you are a deadbeat and will never pay this.

Can a credit company which charged off my unsecured debt (found?

Persons who do not have anything to offer as the collateral or security, can take unsecured bad credit debt consolidation loans. The lenders find themselves at increasing level of risk while giving such loans. The existing bad credit situation and lack of a collateral, make them charge high interest rates and offer low loan amounts to offset the risk involved. But, a person who has a bad credit and cannot provide a collateral has little choice, but to take these high interest loans. At least by repaying these the borrower can rebuild his credit history.

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Can a credit company which charged off my unsecured debt (found?

Do you owe the debt? Then, yes, they can sue you. They can sell the debt to another company for collection.

Unsecured simply means they can%26#039;t take away property or assets that would have secured the debt. Also in bankruptcy filings much of the unsecured is simply wiped away.

Can a credit company which charged off my unsecured debt (found?

Yes, they can. UNSECURED means there is no collateral, that%26#039;s all. You owe, you don%26#039;t pay, they collect. That%26#039;s how it works.