I just found out that Chase charged off my Heloc loan. I was having a short

I just found out that Chase charged off my Heloc loan. I was having a short time hardship and even though I stayed in touch with Chase, by documenting calls/names/ and dates with them in Jauary2011 and February2011 and at no time did either one of the representaives tell me about the term Charge Off and that my account could go into this staus. This is completely new to my and my wife. I fell behind on my first in twenty five years of payments as well with BOA but have been making full payments along with extra so I can catch up my five missed payments.

Ok..go to Chase Bank to pay my missed payments in full thinking all will be fine. I pay the teller with my chase checking account and after taking it she tells me that I need to call the Chase regarding my account.OK get home make a call and for the first time I was transferred to this Chase Recovery Department.

Oh Boy! I was totally taken by surprise! I was told for the first time in my life I was threaten by what I now know to be a Collector for Chase Recovery Department. I have did so much reading and asking questions about this.
But here is the deal, will they attempt to freeze my bank accounts/forclose on me or what? I made and Offer at 19% he made an offer of 50% which prbably would have been the anount of it if I was to pick up the phone today and ask to pay the loan off. So what should I do. I read so many other things and I would like to have my act together to protect my family and our income. Again I made it clear to him I was willing to pay but he said its all right now or suffer the consequences. He mentioned that I would find out what escalate my account is if I did not come up with the 50%.
But during our first conversation it was the whole balance, now its 50% which is probably the principle. How far will he go with this? Again, I explained to him that I was attempting to make my account up to date and a payment was accepted to a charge off account. He said you had your chance to make payments and you failed to pay. I understand that they don't care but legally what will happen to my Chase Accounts if I can ot come up with the 50%. Should I let BOA know whats going on? What should I do here in NY. I know that there may be peolpe here who work for Chase so I will not take to much to heart! My take is I should hold out to the end of month, continue to make a paper trail of my willingness to either settle or give me a re-payment plan...