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Expert: - 9/12/2010


Question
I have HELOC account that is being reported as a ‘Charge Off”.  The balance is $69,000. It was late more than 6 months (about 8 to 10 months) but I am making adjusted payments now of $398. I disputed the charge off but they did not change the status.
My question is: Should I keep paying on this account? I feel that since it will not be paid off for many years (14+) much longer than the 7 years that the charge off will be listed on my credit report.  If I stop paying; it will fall off in 7 years.
Thanks for your help in this dilemma,


Answer
Kevin,

I am not sure how your HELOC is written but a bigger concern for me if you stopped paying the debt is a potential lawsuit that would arise. This is a pretty big debt and would be worth suing over.

Have you talked to the lender about removing the charge off status since you are paying again?

Chris Ebert
http://www.henleycreditlaw.com

Collections Law

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Chris Ebert

Expertise

I can answer questions for Texas and California residents concerning issues that involve creditor and debtor rights. Specifically, I can answer questions concerning: FDCPA, FACTA, FCRA, and Texas / California state collections violations.

Experience

For the last 6 years I have worked as a Sr. Paralegal in a law firm (http://www.henleycreditlaw.com) that defends debtors against their creditors. I have reviewed thousands of credit reports and under the supervision of our attorney helped hundreds of client resolve their credit issues.

Organizations
Henley & Henley, PC

Education/Credentials
BBA University of Texas at Austin

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