I owe Chase Bank USA on two credit cards: one for $20000 and the other for $15000. I am delinquent on both. I get repeated calls from them on my home and cell phones. I have not spoken to anyone there since June.
I have just received a letter demanding the unpaid $20000 balance in full and that they will sue me if I don’t call them within 20 days to schedule an acceptable repayment arrangement. My question is: how much negotiation can be expected? Can I get them down to 50% or less with payments with 0% interest? And finally, will they actually sue me to garnish wages, attach my bank account, etc.?
Each creditor has their own way of playing with settlements. Chase may be willing to take a reduced settlement but what they may not be willing to do is accept little payments from you over the long run. It really all depends on what their policy is at the time you call.
You are currently in the sweet spot for settling, seeing how you are already four months behind. The best approach at this point would be for you to call Chase and talk to them about settling the debt and under what terms they will accept payments on the debt.
Doing that isn’t going to hurt. Chase already knows you are behind, they already have the legal right to sue you, and they will do that probably if you can’t work out some mutually acceptable arrangement.
If they do sue you they can avail themselves of all their options under the law for collecting and depending on where you live that can include wage garnishment. Once they sue and win they can go after you hard or just let the judgment earn more interest while they have a legal right to do so. The judgment won’t be removed till it’s satisfied.
One other option if you don’t want to deal with the settlement route is to consider bankruptcy. Bankruptcy will stop the suit cold, discharge the debt and allow you to get a quick fresh start.
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
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.