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The Chase Legal Department Says They WIll Sue Me. – Jacqueline

“Dear Steve,

I am in financial hardship and have always had perfect credit but had to stop the bleeding. Chase now threatning to take me to court.

Due to financial hardship I stopped paying my Chase credit card and Us bank card, I attempted a settlement at 10% they said 85% then late 65% (Chase) they talked me into a payment plan but I couldn’t afford it so just stopped paying again. I received a letter from their law department stating they were taking me to cout, they could garnish my wages, put a lien against my property etc and I still had time to work out a payment plan. I owe them $18.000

My question is will Chase typically do this? shold I communicate I cannot pay and have no equity in the property and am not working (had to close down my company this year) so they will know its a waste of their time? What do you advise and what is the worst i can expect?

Jacqueline”

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The Answer

Dear Jacqueline,

Chase has every right to sue you, and they almost be sure to win. Chase has an agreement between you and Chase where you agree to repay the debt according to a formula in the agreement. For whatever reason you have been unable to make those payments. The Chase position to the judge will be you broke the agreement, which it seems you did. I’m not trying to be harsh, just shedding a little reality on the situation.

The worst you can expect is you will be sued, lose, they will get a judgment and wait for you to get employed and then garnish your wages. The judgment will build interest and will include an additional amount for costs and attorney fees.

At this point your options are to enter into a mutually agreeable repayment plan with Chase and hope US Bank doesn’t sue you or go talk to a bankruptcy attorney and put an end to the debt.

You can click here to find a local bankruptcy attorney and if you’d like a second opinion about your situation or a personal consultation by another debt coach, please feel free to contact Damon Day.

Please update me on your progress by posting updates here in the comments section of your question. I’m very interested in how this works out for you.

Big Hug!

The Chase Legal Department Says They WIll Sue Me.   Jacqueline
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About Steve Rhode

Steve Rhode
Steve Rhode is the Get Out of Debt Guy and has been helping good people with bad debt problems since 1994. You can learn more about Steve, here.
  • Merovingian TV

    US Bank is generally easier to settle with than Chase as of Sep 09. Chase caught some people strategically defaulting & ruined it for people with real hardships.

    Usually US bank will move it to ELAN and they’ll settle for 20-30% of balance still.
    It’s true everything Steve says about the worst case scenario. But it sounds like you’re self employed (hard to garnish) & your house is not equitable (sucks to lien) so most likely Chase will have to play the waiting game or try and levy any known checking/saving accounts you’ve paid them with after getting a judgment (depending on your state law).

    These banks can wait you out, cause they’re getting bailed out by your future tax dollars, “too big to fail” aka there will be no “redistribution of wealth.” Think I’m full of it? What would happen to property values if banks released 3 out of the 4 foreclosed properties sitting on their books & placed them back on the MLS?- you’d get a house for what it cost to build it….. redistribution of wealth,,, insanity,,,, i know…

    A lot of people get delusional and want to FIGHT the law suit, but it’s not about “WHY” you didn’t pay, it’s about “IF” you didn’t pay. Which you didn’t, unless there was fraud or something??

    Chase will do Stipulations agreements (depending on your state), usually 10-25% down and a monthly payment of 12-36 months. If you miss a payment it turns into a judgment automatically. I like calling a few days before the end of the month b/c the collectors are hungry for end of month bonuses.

    My 2 cents, don’t go half ass, decide if you want to do bk or ds and stick to one plan. It makes no sense to settle with US Bank then decide to BK cause Chase won’t play ball. Get them all to come to the table or drop the BK bomb.

  • http://twitter.com/MerovingianTV Merovingian TV

    US Bank is generally easier to settle with than Chase as of Sep 09. Chase caught some people strategically defaulting & ruined it for people with real hardships.Usually US bank will move it to ELAN and they’ll settle for 20-30% of balance still. It’s true everything Steve says about the worst case scenario. But it sounds like you’re self employed (hard to garnish) & your house is not equitable (sucks to lien) so most likely Chase will have to play the waiting game or try and levy any known checking/saving accounts you’ve paid them with after getting a judgment (depending on your state law). These banks can wait you out, cause they’re getting bailed out by your future tax dollars, “too big to fail” aka there will be no “redistribution of wealth.” Think I’m full of it? What would happen to property values if banks released 3 out of the 4 foreclosed properties sitting on their books & placed them back on the MLS?- you’d get a house for what it cost to build it….. redistribution of wealth,,, insanity,,,, i know…A lot of people get delusional and want to FIGHT the law suit, but it’s not about “WHY” you didn’t pay, it’s about “IF” you didn’t pay. Which you didn’t, unless there was fraud or something??Chase will do Stipulations agreements (depending on your state), usually 10-25% down and a monthly payment of 12-36 months. If you miss a payment it turns into a judgment automatically. I like calling a few days before the end of the month b/c the collectors are hungry for end of month bonuses. My 2 cents, don’t go half ass, decide if you want to do bk or ds and stick to one plan. It makes no sense to settle with US Bank then decide to BK cause Chase won’t play ball. Get them all to come to the table or drop the BK bomb.

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