A “Charge Off” is an accounting term that creditors use when they assume after a period of delinquency that they are not able to collect on a debt that is owed to them. Creditors write that debt off as a loss against their income taxes. Just because a debt is charged off (or written off) does not mean the debt is forgiven. The money is still owed. The creditor will usually sell or assign the debt to a collection agency or a lawyer to effect collection.

In the past several years, medical debt has become more burdensome for many families. So much so that medical bills have become a major cause of personal bankruptcy. It’s not that people have no health insurance. Many individuals who cite medical debt as the cause of their bankruptcy were actually covered under a health insurance plan at the time the medical expenses were incurred. The problem is that certain medical expenses are often uncovered. Debt settlement may be an alternative to bankruptcy for dealing with your medical expenses.

It may sound like the stupidest financial move ever: getting credit cards after bankruptcy. But done right, it may be one of the smartest moves you can make for your credit. The main purpose for getting new credit cards after bankruptcy is to help boost your credit scores, which most likely took a hit when you filed.

If you’re thinking you can settle your student loan debt for 40% to 60% less than what you currently owe, think again. Student loans are nearly impossible to discharge in bankruptcy and therefore just as difficult to settle. If you’ve defaulted on your student loans, your best option is to figure out how to get caught up. Otherwise, you could be sued for the debt.

A credit bureau gathers information about how consumers use credit. In other words, they collect information from as many consumer financial transactions or inquiries as they can. They then sell access to that combined information to anyone who has a legally-recognized reason (permissible purpose).