Can a company still collect on a charged

If you're dealing with debt problems, understanding the true implications of a charge-off is essential. PM Images/Getty Images

With costs continually rising and borrowers' budgets stretched to their limits, millions of Americans have found themselves carrying debt that's gone unpaid for months or even years on end. But when creditors stop receiving payments for an extended period, they tend to take an accounting step that can confuse many borrowers: charging off the account . The term, which appears on credit reports and almost sounds like good news, leads some borrowers to believe their debt has been forgiven or canceled.

That terminology itself is misleading, though. A charged-off debt suggests finality, a closing of the books or an end to the obligation. But the reality