I Was Just Wondering If A Company Can Take Me To Court And Sue Me For The Amount They Already Charged Off? I Heard That My Balance Is Infact Zero Because They Got A Tax Write Off. How Can Someone Sue If The Balance Is 0?
They can try to collect, including suing, or sell it to another party who can try to collect, including suing. If they write it off (charge it off), they have determined that they are unlikely to get paid, so they recognize it as a loss for accounting and tax purposes. It then they later collect payment, they recognize that payment as income when they receive it. Similarly, if they sold the debt, they would recognize the payment from the buyer as income.
