Question
When a credit card balance is charged off and then turned over to a collection agency am I still responsible?
Someone told me on these boards if the credit card company has charged off my balance then I will never have to pay it. However my account was turned over to an outside collection agency for accounts with BOA, Chase, Wells Fargo. They were turned over to an outside collection agency in 2009. No payment has been made on them since 2008 and the only source of income I have is SSI. My house was put in my daughters name earlier in 2009 and I reside with my hubby where the house is in his name. He is not listed on any of these credit cards, not even a co-appliant nor he is an authorized user.
4 weeks ago - 6 answers
Best Answer
Chosen by Asker
Technically you still owe the debt, but since your only source of income is S.S.I. and you have no real property in your name your what's called judgment proof. The only thing you need to be aware of is you can still be taken to court and have a judgment issued by the courts and then your bank accounts can be seized and liens placed on any real property you may own like cars, boats, land and homes. There is also the possibility that you could be charged with fraud since you transferred you home so quickly after the accounts went to collections. Good luck.
Source(s)
Finance Manager for over 9-years.
by SPIFIMAN1
4 weeks ago
Asker's Rating: 
Other Answers
Yes, you are still responsible. The debt has been sold to the collection agency. The original lender's charge-off is an accounting mechanism for the lender, that's all.
by jlf- 4 weeks ago
YES, you still have to pay! What moron said that?? In fact, they can sue you for payment if you refuse to pay. YOur hubby not being on the cards is COMPLETELY irrelevant. Since you are MARRIED, your debt is legally HIS debt as well. HIS wages can be garnished and tax refunds seized. Don't thing you can go around stiffing major banks are there is no consequence for it.
by Ryan M- 4 weeks ago
While 'Spifiman' (above) is PARTIALLY Correct the Collection Agency 'bought you Debt, for dimes on a dollar' from those Creditors OR made a deal to SHARE part of the Recovery money with them, in hopes of collecting the/your Debt! They will hound you with Letters of Threats and even call your home if they have your home phone number, for YEARS! They CANNOT call your Employer and they may threaten you with "Wage Garnishment"....Baloney, it won't happen! The ONLY People who CAN "EVER" attach or take your Bank Accounts or put a Lien on your Home is the IRS, "Internal Revenue Service" (Income Taxes) and being you don't have a Problem with the IRS...it AIN'T gonna Happen!!!!! P. S. They CANNOT Garnish or Attach your SSI, it is FEDERAL Money, to you! They CANNOT touch anything that has to do with the FEDERAL Govt! I'm sorry to hear of your Predicament, but, rest assured it will be ok....but, they will 'hound' you !
by Trouble- 4 weeks ago
Trouble you obviously don't know what your talking about. Several years ago I was taken to court by one of my credit cards and they received a judgment and did attach my bank account and filed liens on my car and home. So Spifiman is totally correct in his answer.
by BROWN EYES- 4 weeks ago
of course unless you are insolevent you will be blacklisted for a period of time (ask a lawyer) or Citizen Advise Bereau.
by Sali- 4 weeks ago