Credit Advice

Have a question? Have advice to share? The combined knowledge and experience of everyone in the Credit Karma community can help you. Enter your question or help others below to get started!

Question

Posted in Credit Cards
Profile Image

Question By
cajunfairy

1 Contribution
0 People Helped
charge offs accounts
how i understand when my charge off fall off. date of opened or date of closed. my account oldest account is 6 yr & 6 months it would have to the charge offs . total 4

Your Credit Scores Should Be Free. And Now They Are.

View your scores and reports anytime.

SIGN UP NOW
All Responses

Results 1-2 of 2Results per page: 5 | 10 | 25Page 1 of 1   Previous | Next
1 Contribution
0 People Helped

credit

Im trying clean my credit up yet don't understand this 7 yr thing how it works. im still trying understand credit score too

Top Contributor

Reply by
Arlanna23

18 Contributions
30 People Helped
Helpful to 1 out of 1 people

Hey I hope this helps...

The 7-10 year rule is quite deceiving but I have found out that the rule means 7-10 years from the last date of activity. So if you opened an account in 2000 and everything was all good then you fell behind in 2005 your account was sold to collections in 2010 after 5 years of bouncing the account around like a wild flubber ball they decide the chase is just not worth it so the last time they updated the account was 2015. That account is not considered outdated until 2022-2025 becuase the last date of activity was 2015. Consumers generally believe that the 7-10 year rule applies from the year opened. So not the case unfortunately. And even still in 2022-2025 if the account has been untouched the credit bureaus will leave that account on there because they are so busy with other active updates so its up to you to tap them on the shoulder so to speak and say hey I know you got a lil caught up but this account is outdated for quite some time now can you remove that thanks. 

In order for an account to be deemed a valid charge off this is what had to have happened. Company ABC cannot sell your account AND charge it off its either one or the other. If Company ABC hasnt sold your account and is unable to collect they can charge the debt off and count it as a loss. In order to count as a loss they have to file a 1099-C which is a cancellation of debt with the IRS. Reason being if they are counting a lets say 10k loss on their taces this lowers their tax liability and if there is a loss there has to be a gain. The IRS will for that same year send you your portion of the 1099-C which you will use with your personal income tax return and count that 10k as a gain. Here is where you get lucky!!! Normally Company ABC just tries to take the "easy way out" and says they charged it off. It however is NOT a valid charge off UNLESS you have received a 1099-C. You can call Company ABC and say hey I have looked at a copy of my credit report and I see that you have charged off my debt of 10k... What year was this because if you counted my 10k debt as a loss I am supposed to count it as a gain for that same year and I really dont want trouble with the IRS so can you please provide me the 1099-C you got from them so that I can take it to my tax guy and get this squared away immediately...They are going to close and cancel that account so fast your head will spin because they know darn well they dont have that 1099-C they probably dont even know what a 1099-C is so BOOM you win they lose. Valid dispute for full and permanent removal of the debt. They cant sell it, they cant claim on it the account is DEAD roger that!

Top Contributor
18 Contributions
30 People Helped

Charge off v the account "falling off"

The 7-10 year rule is quite deceiving but I have found out that the rule means 7-10 years from the last date of activity. So if you opened an account in 2000 and everything was all good then you fell behind in 2005 your account was sold to collections in 2010 after 5 years of bouncing the account around like a wild flubber ball they decide the chase is just not worth it so the last time they updated the account was 2015. That account is not considered outdated until 2022-2025 becuase the last date of activity was 2015. Consumers generally believe that the 7-10 year rule applies from the year opened. So not the case unfortunately. And even still in 2022-2025 if the account has been untouched the credit bureaus will leave that account on there because they are so busy with other active updates so its up to you to tap them on the shoulder so to speak and say hey I know you got a lil caught up but this account is outdated for quite some time now can you remove that thanks. 

In order for an account to be deemed a valid charge off this is what had to have happened. Company ABC cannot sell your account AND charge it off its either one or the other. If Company ABC hasnt sold your account and is unable to collect they can charge the debt off and count it as a loss. In order to count as a loss they have to file a 1099-C which is a cancellation of debt with the IRS. Reason being if they are counting a lets say 10k loss on their taces this lowers their tax liability and if there is a loss there has to be a gain. The IRS will for that same year send you your portion of the 1099-C which you will use with your personal income tax return and count that 10k as a gain. Here is where you get lucky!!! Normally Company ABC just tries to take the "easy way out" and says they charged it off. It however is NOT a valid charge off UNLESS you have received a 1099-C. You can call Company ABC and say hey I have looked at a copy of my credit report and I see that you have charged off my debt of 10k... What year was this because if you counted my 10k debt as a loss I am supposed to count it as a gain for that same year and I really dont want trouble with the IRS so can you please provide me the 1099-C you got from them so that I can take it to my tax guy and get this squared away immediately...They are going to close and cancel that account so fast your head will spin because they know darn well they dont have that 1099-C they probably dont even know what a 1099-C is so BOOM you win they lose. Valid dispute for full and permanent removal of the debt. They cant sell it, they cant claim on it the account is DEAD roger that!

Results 1-2 of 2Results per page: 5 | 10 | 25Page 1 of 1   Previous | Next

Your Credit Scores Should Be Free. And Now They Are.

View your scores and reports anytime.

SIGN UP NOW

Reply to this Question

Write your response:
Enter Your Comments

The Credit Advice pages of the Site may contain messages submitted by users over whom Credit Karma has no control. Credit Karma cannot guarantee the accuracy, integrity or quality of any such messages. Some users may post messages that are misleading, untrue or offensive. You must bear all risk associated with your use of the Credit Advice pages and should not rely on messages in making (or refraining from making) any specific financial or other decisions.