I read somewhere that if a credit card co charged/written off an account and included it in their taxes, they cannot pursue you for that balance, nor sell it to another company. Anyone know where I can find that thread? Thanks!
About whether a CA can still collect if they included the charge-off on their tax return, the answer is yes according to this link: http://www.cardreport.com/credit-problems/charge-off.html As an accountant, I have not seen our department stopping collection activity after we have filed our bad debts expenses. It also addresses the question about wether or not the clock on credit reporting re-srtarts when the status changes from Charge-Off to Paid Charge Off.
I think you might be referring to the subject of a debt that has been SETTLED for less than was owed. The law is, the balance that was NOT paid is EITHER reported as taxable income to the debtor, OR is continued as a collection account If the ca has agreed to accept the settlement, THEY can no longer collect on it, BUT they really don't want to report it with a 1099C,so they resell it to another ca.
