A charge off is what occurs when your debt has defaulted for 180 days. In simple terms, it means that your debt was moved from one accounting ledger to the bad debt ledger. The creditor has the choice of attempting collections against the account themselves, hiring a collection agency to collect on their behalf, or to sell the account to another party. The debt can continue to accrue interest, even if the debt is sold, provided that the new owner is licensed to charge interest.
A charge off is what occurs when your debt has defaulted for 180 days. In simple terms, it means that your debt was moved from one accounting ledger to the bad debt ledger. The creditor has the choice of attempting collections against the account themselves, hiring a collection agency to collect on their behalf, or to sell the account to another party. The debt can continue to accrue interest, even if the debt is sold, provided that the new owner is licensed to charge interest.