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?
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.
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.