A charge-off is not "resolved" after it is taken and reported unless it is either shown to have been incorrect, or the creditor voluntarily deletes its reporting.
A charge-off is an internal accounting measure that is, and often is required under federal regs, to be taken by a creditor once the debt has reached a certain degree of delinquency. Just as with other reporting of account delinquencies, that is not negated if the debt is subsequently paid. The fact that it was taken can remain in the credit report under the showing of amount of initial debt that was charged-off, and in subsequent months under the prior payment history profile as the reported level of delinquency.
Paying will thereafter prevent reporting of the current status as continuing to be delinquent (CO), but will not result in required removal of the initial amount of CO or of the prior monthly CO status reporting.
Once the debt is paid, the current balance will become $0, resulting in the removal of the balance from your % util calculation if the debt is revolving.
If eitther a collection is reported after a charge-off, or a judgment is rendered by a court, all can simultaneously show in the consumer's credit report. One does not "replace" the other. They are separate and proper reporting of different events, with the CO being reporting that the level of delinquency has reached the point where it is considered as being unlikely to be paid under federal regs, a collection being reporting that use of a debt collector has occured during the attempt to collect the delinquent debt, and a judgment showing that a court has rendered a finding of legitimacy of the debt and ordered its payment.
