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Should I continue to pay if my account been charge off? what can I do to keep my car?

Palatine, IL |

I am less than 2 mths behind. I need a better understanding what charge off means and how I can pay off my car payment. please advice. Dee

Attorney Answers 2


Charge off just means that the creditor has determined that this is a bad debt. It is an accounting term and not a forgiveness of debt. The debt and lien still exist. If you do not pay the lien, the creditor can repossess the car. The debt needs to be paid to get the lien removed.

[I am a Virginia-licensed attorney. This communication is intended as general information and not specific legal advice, and this communication does not create an attorney-client relationship.]

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Be careful of attempts to repossess the vehicle. It is unlikely that the creditor will accept payments if the loan has been charged off. It is likely that the debt will be sold to one or more thrid parties who will try and collect.

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Disclaimer: This answer does not constitute legal advice. I am admitted in the States of New York, New Jersey and Massachusetts only and make no attempt to opine on matters of law that are not relevant to those three States. This advice is based on general principles of law that may or may not relate to your specific situation. Facts and laws change and these possible changes will affect the advice provided here. Consult an attorney in your locale before you act on any of this advice. You should not rely on this advice alone and nothing in these communications creates an attorney client relationship. The opinions expressed herein are those of the author only and the fact that he has worked as an Assistant District Attorney; State Supreme Court Clerk; Special Assistant United States Attorney (Hawaii); Assistant Cornell University Counsel or Judge Advocate, United States Marine Corps should not be relied upon to assume that these statements reflect the policy of these organizations.

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