Also known as a profit and loss write-off, a charge-off is an account that was not paid to the extent that the creditor has internally listed it as a loss for tax purposes It does not mean that the creditor will no longer attempt to collect the amount that is owed
>> A delinquent credit account with a balance owed that was never fully satisfied and the creditor removed it from the books for accounting purposes even though the debtor still owes payment in full
the removal of an account from a loan provider's books When an account is charged off, the loan provider absorbs the outstanding balance as a loss Charge-off is also referred to as Write-off