Can credit card companies do long-term repayment plans after CO?

[Anonymous]

Just wondering what people think. I'd like to pay back Amex that recently charged off for an insame amount (nearly $40K). As I DO like their products and eventually when my report clears out, I want to apply again.  I haven't talked to them yet because I got some cold feet...but does anyone know? And is it restricted to 60 months max like it is while the account is still open?

[RobertEG]

Taking a charge-off does not terminate continued obligation by the consumer for repayment of the debt.

It is essentially an internal bookeeping measure that moves the delinquent debt from the accounts receivable column of their accounting ledger over to a non-asset, bad debt section, thus removing debt that is unlikely to be repaid from thier statement of assets.

Yes, you can still pay, and can offer terms for repayment.

However, their is one limitation.  If the creditor has sold the debt to another, which is common after taking of a charge-off, then the creditor cannot thereafter accept any repayment.  You must then contact the new owner/debt purchaser and negotiate terms with them.

Does the creditor still own the debt?

[kilroy8]

I think they are going to be after you aggressively on that one. I would talk to a reputable credit counseling service, or maybe even a BK attorney. If you wait, they will just be taking your paycheck from you.

[marty56]

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@kilroy8 wrote:

I would talk to a reputable credit counseling service.

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A DMP program won't help since the account is CO.  There are no reputable debt settlement companies and I don't think it work work here anyway for the same reason.

BK might be a last resort option if the OP can't arrange a payment schedule.