Can Discover do both a charge off and place a judgment against me? – jacynthia

I have a debt with Discover in the amount of $2400.00

My last payment was in August of 2010. This has been more than 180 days which is usually the charge off number of days prior to a charge off. They are threatening to place a judgment against me if I do not make some satisfactory arrangements before April 29, 2011.

Can Discover do both a charge off and place a judgment against me?

—jacynthia

Hi jacynthia,

Charge off is a simple accounting principle where a lender must recognize a loan or credit as a non performing asset. A charge off event does not limit the creditor from continuing to collect or even sue you in an attempt to collect.

You would first have to be sued in court prior to any judgment being entered against you. If sued and the matter goes uncontested or you lose in your efforts to defend the suit, than yes, Discover can both charge off and get a judgment.

What is your ability to make some type of consistent monthly payment towards the debt? Can you make some type of payment consistently month after month?

Discover does offer hardship plans prior to charge off. They may only last 6 or 12 months, but that may be the time you need to get back on your feet financially. Have you talked with them about a payment plan?

What type of money can you come up with in order to offer a lump sum settlement? Can you come up with 50% of the overdue balance?

Please post your answers in the comment section below, and I can perhaps provide more feedback.

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