Charge-Off
A debt a lender has written off as unlikely to be collected, typically after several months of missed payments, though the underlying obligation isn't automatically eliminated.
A charge-off is an accounting action the lender takes for its own records, not a forgiveness of the debt, the business or individual generally still owes the balance, and it may be sold to a collections agency or pursued through other means afterward.
A charge-off is one of the more serious negative marks on a credit report and typically makes future financing significantly harder to obtain until it’s resolved or enough time has passed.
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