What is a charge-off?

Charge-off is an accounting term which means that the creditor considers a debt uncollectable. This can be due to things like an agreement not to collect an amount, an account being many months past due, or failure to perform a settlement agreement. These amounts are reported to credit reporting agencies and may appear on credit reports. Charged-off debt is still owed, and creditors may still seek to collect it unless a settlement agreement is reached and successfully completed.