Equifax Credit Reports Explained
2010
Do companies “write off” debt that they can’t collect?
What exactly is a write off? After they have written it off can they still put it your credit reports (equifax, etc.)? If I call the company and find out my debt has been written off, should I call the credit bureaus and inform that the debt has been written off and ask them to remove it from your history? I’ve also heard that you can write a letter to the credit bureaus informing them why you incurred so much debt you couldn’t pay back and explain your intentions about how you are going to pay them back. I was told that the letter must be submitted with the report when the report is requested. Is it true?
After you fall behind by a certain amount, the company can no longer count your debt as an asset under “accounts receivable”. “Writing it off” is the accounting procedure for reclassifying the debt. It is an internal function. You still owe the money and they still have al their rights to collect it.
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