By definition, a Charge Off is an accounting term the original creditor uses when they determine that they are not able to collect on a debt that is owed to them. They then write the debt off as a loss against their income taxes. The charge off typically occurs when the debt is 6 months delinquent.
When an Original Creditor charges off an account, it is often referred to or sold to a collection agency for further collection. It is important to understand that just because an account is charged off it doesn’ that you are no longer responsible for the debt. You are still responsible for the debt.
For consumers attempting to resolve their debt for less than they owe, charge offs are part of the process. It is likely that your creditors will not negotiate with you until the account has charged off. This is common practice.