Account Is Deemed As Uncollectible By The Creditor And Written Off As "Bad Debt" Or "Loss"

[Anonymous]

Should I still settle and pay? 

[traveler2005]

A paid account will always look better under manual review than a unpaid account. Make sure you get every you agree on in writing

[RobertEG]

The write off of debt as "uncollectible" is an accounting measure, and does not mean that the debt is excused or cancelled.

It moves the debt from the accounts receivable (asset) column to the bad debt (liability) column, thus reflecting the fact that the debt is not likely to be paid.

Reporting of delinquent debts as a charge-off is usually mandated by federal regs after 150-180 days.

From the consumer's perspective,  the debt is still owed and can be pursued as any other debt.

Reporting of the charge-off is simply the addition of the determination that the consumer is unlikely to pay the debt to their credit file.

It is common for creditors to either refer a bad debt to a debt collector after taking a charge-off, or sell the debt and recover a bit more of the loss.

In either event, the debt collector may then report a collection.

Paying before the debt is referred for collection or sold can thus avoid the addition of a collection.

Factors that affect paying a delinquent debt include whether the SOL has expired, and whether the credit report exclusion period has passed.

What is the date of first delinquency on the debt?