Credit Reporting Services
Houston Debt Collectors Helping Combat Delinquency
When a debtor becomes severely delinquent on a debt, often at the point
of six months without payment, the creditor may declare the debt to be
a charge-off. After this, and upon our client’s request, Adams,
London & Weiss LLC, will list the charge-off as such on the debtor’s
credit bureau reports.
This is one of the worst possible items to have on a credit report and
- Relevant dates
- The amount of the bad debt
- Serious credit impairment
- Future difficulty in obtaining credit
Profits & Losses
A charge-off is considered to be written off as uncollectable and the main
reason for this is because it involves taxes at the corporate level. Every
year, corporations file a profit and loss statement with the IRS and this
P&L is also made available to federal and state regulators, as well
All of the year's bad debts, including business and individual personal
guarantee charged-off accounts, are added together as an item in the loss
section of the P&L statement, and they are deducted from the corporation's
tax return, much like other business expenses. However, the debt is still
considered legally valid; and the creditor can attempt to collect the
Consequences of a Charge-Off
As per the Fair Credit Reporting Act, a charge-off, whether paid or not,
can remain on a credit report for up to seven years. The time limit is
based on the date of the original delinquency, such as when the debtor
missed a payment and never again became current, as it is not based on
the last activity.
Furthermore, paying an old charged-off debt will not remove it from credit
reports, as it will simply be listed as a paid charge-off, which is somewhat
better, but it is still a seriously derogatory item.
In some instances, Adams, London & Weiss LLC may be able to negotiate
with our clients to have the derogatory item completely removed from the
credit reports in exchange for partial or full payment. This must be done
directly with our agency, as our office, and not the creditor, reported
the delinquent debt to the credit reporting agencies.
Contact our Houston debt collection agency online today or call us at (713) 489-1819 for an
initial case evaluation.