Debt Collection After a Write Off
Nearly 3 years ago, I had to voluntarily repossess my vehicle to my credit union. The vehicle was auctioned off for less than what was owed (roughly $9000 less). A credit report I got at the beginning of this year showed that amount had been written off by the credit union. Recently I was contacted by a collection agency and informed that I needed to pay off the remaining amount and if I didn't they would take me to court. Am I required to pay this off even though the credit union has written it off?
Reply from DebtCollectionAnswers.com:
Unfortunately, the fact that the credit union charged off the debt does not mean you are off the hook. Financial institutions are required under banking regulations to write off bad debts after a certain time period. (If they don't, the bank may appear more financially healthy than it actually is.) The charge off, or write off, is a formality but it doesn't relieve you of any balance you owe.
At this point, you need to figure out how to deal with this balance: pay it, settle it, or erase it by filing for bankruptcy.
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