Gary Alan Carnal's Answers

Home equity loan is listed as "charged off as bad debt/profit and loss write off" by original creditor, will they still pursue?

My experience is the term "charged off" simply means that they are not currently seeking active collection of the debt. The debt is not cancelled or released. Prior to the expiration of the applicable Statute of Limitations the creditor may still file a lawsuit to convert their claim to a Judgment which is then enforceable for 10 years and then an additional 10 years by re-recording. The inheritance of land would be a non-exempt asset which could be reached by a judment creditor. You should...

I am being sued by a credit card company attorney for Breech of Contract, however I have been making payments on the card.

Paying consistently may not cure a breach of contract if the payments are not made in accordance with the terms of your contract. Just by paying "something" each month (i.e less than the minimum payment) is not a defense. If a payment plan is set up with a collection agent you should have something in writing showing an agreement to setttle for such arrangement. A written contract cannot be modified by a verbal agreement. Any modification must be in writing. A judgment may be entered in a...

A creditor sent me a civil summons to court, they included an item labeled exhibitA. Should I in my answer to letter, dismiss it

You can ask for it to be dismissed but it is unclear as to what the basis would be. When a debt is "charged off" it just means that the creditor is not actively pursuing collection. The creditor may still pursue it at a later date if the statue of limitations has not expired. Some creditors will charge off a debt and then just before the statute of limitations has expired proceed with a lawsuit to get a judgment entered which is then legally enforcable for a longer period of time.

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As an unemployed person, should I take money out of my husbands 401k to pay off a credit card debt?

Funds in a 401K are exempt from creditor claims. If the creditor sues and obtains a judgment, these funds are protected from the creditor taking them to pay the debt. By filing bankruptcy you would be able to keep the money in the 401K, and either discharge the credit card debt in chapter 7 or make a partial payment to settle it in a chapter 13.