Bankruptcy Charge-Offs and Collections

  • By admin
  • June 5, 2014

It can hurt you in several ways to pay on a debt that has gone into a charge-off or collection.


1)  You are not dealing with the original creditor.

2)  When you pay off an old debt you re-activate the debt and it  will show up as new bad debt. 

3)When a debt is closed and in collections the balance is no longer relevant. If you pay the debt off it will show paid, but since you re-activated it, it will remain on your credit history as if it is a new bad debt. Bad debts remain on your record for 7-10 years. Example: If this debt was 5 years old it would come off your record in 5 years. If you make any payment on it or pay it off it will stay on your record for 7 years from this new date.

Once a debt has gone into collection or charge-off it can be reported more than once on your credit report and could be on there several times. 

SO WHAT HAVE YOU ACCOMPLISHED?  YOU HAVE ACTUALLY HURT YOURSELF AND WASTED MONEY.  Credit Help USA believes that a person should pay their debts, but not when they are actually punished and penalized for doing the so called “right thing”.  Our goal is to educate you to these underhanded tactics of creditors , clean your credit and give you a fresh start.
Bankruptcy will stay with you for a long time and is truly not the way to go for most people.  Don’t throw your hard-earned money away, paying on debts that have hurt you all that they can.  Paying on collections or charge offs will hurt your credit score in several ways.  They are usually shown over and over on your credit reports.  You have to know that these accounts have been sold, and you are not dealing with the original creditor.  Paying on these accounts will actually renew the debt on your credit report for another 7 1/2 years from the date of last activity.  These accounts, and others, need to be deleted permanently, and this would enable you to walk away from those debts legally.