Definitions for "Charge-Off"
When a creditor or lender writes off the balance of a delinquent debt, no longer expecting it to be repaid. A charge-off is also known as a bad debt. Charge-off records remain on your credit report for 7 years and will harm your credit score. After a debt is charged-off, it can be sold to a collections agency.
Also known as a profit and loss write-off. A charge-off is an account that has not been paid as agreed, and has now been internally listed by the creditor as a loss for tax purposes. The creditor will continue to attempt to collect the amount that is owed.
The situation in which the issuer is faced with a delinquent loan of such severity that it must absorb the amount of the debt, at least temporarily, in order to clear the amount from its ledgers. The issuer may still attempt to collect some or all of the amount owed through the recovery process.