Charge-off is an accounting term which means the creditor believes a debt (money owed) can't be collected. This can be due to things like:

• An account being past due for months.
• An agreement not to collect a certain amount due.
• A settlement agreement was not completed.

These amounts are reported to credit reporting agencies. It may appear on credit reports, as charged-off debt is still owed. A creditor may still look to collect it unless a settlement agreement is reached and successfully completed.