Charge-Offs - Explanation

Charge Off, A charge off is the declaration by a creditor that an amount of debt is unlikely to be collected.  It removes the uncollectible balance from the active receivable accounts.  The creditor may sell your debt to a collection agency

Also known as a profit and loss write-off, a charge off is an account that was not paid to the extent that the creditor has internally listed it as a loss for tax purposes. It does not mean that the creditor will no longer attempt to collect the amount that is owed.