What to do about a charge-off?

Plaintiff’s claim dismissed (non-suit without prejudice) against me. Am I responsible for paying off remaining balance or can I wait until statute of limitation expires for removal from credit report? This account is not in debt collection.

Asked on September 9, 2011 under Bankruptcy Law, Texas


FreeAdvice Contributing Attorney / FreeAdvice Contributing Attorney

Answered 9 years ago | Contributor

If there was a lawsuit against you where the plaintiff's claims against you were dismissed without prejudice, the plaintiff can file a new action against you so long as there is no bar under all applicable statutes of limitations.

If you contest the balance claimed to be owed you are not responsible for paying off the claimed balance. You can bide your time and see what the creditor plans on doing since the account is not in collection and let the statute of limitations continue to run.

One option is to reach an agreement in writing where you and the creditor agree that for payment of a certain amount by you that the claimed debt is paid in full.This might be a good tactic for you since the lawsuit against you was dismissed.

Good luck.

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