Your reference is to the concept and practice of setting off funds owed to a debtor against those owed by a debtor. If there is a common owner of a charged-off overdrawn account (the funds owed by the debtor) and a joint deposit account in the same bank (funds owed by the bank to the debtor), setting off all or part of the charged-off amount against the deposit account balance is permitted under the laws of all states of which I am aware.
You should check your own state's laws, and make sure you check to see if your state is a "single action" state, which would allow you to take only one action to collect the charged-off amount. And, of course, you must make certain that you still have the right to collect the charged-off balance under any applicable statute of limitations.