A bank set-off is when a creditor takes money out of your bank account because you missed one or more payments on a debt you owe them. Set-offs that happened in the 90 days before your bankruptcy filing are listed on your Statement of Financial Affairs (Form 107) in response to Question 11.
Another type of set-off happens with tax refunds. The federal government can keep all or part of your tax refund for unpaid taxes or defaulted student loans.
For more, check out this article in our Learning Center.
A charge-off is when a creditor moves a past-due debt into a new category in their internal accounting system, usually for tax purposes. Charge-offs often go hand-in-hand with selling or transferring the debt to a collection agency or debt collector. But a charge-off doesn’t eliminate the debt, so you still need to list the collection agency or debt collector on your bankruptcy forms.
For more, check out these two articles in our Learning Center: