What does a charge off mean on a credit card debt?

By law the original creditor must "charge off" an account within 180 days of default. The term refers to the action taken to enable the OC to list the account as a tax loss. The account in all probability will be sold for literally pennies on the dollar, (2-3 cents generally) to a third party collector. Who will then pursue collection begining with phone and mail contact and if unsuccessful in that action, possibly a lawsuit.