Chase Bank Says They Won’t Settle Our Debt And Want Us to Go Bankrupt. – Sarah

“Dear Steve,

My husnabd and I are in the process of trying to settle $25,000 (just under) of debt with Chase (Visa credit card) for $10,000 (it would be a ‘one time’ payment – to come from my wonderful brother). We are now 5 months without making a payment to Chase. We have offered them the $10,000 and explained the circumstances – both of where the $10k will come from (lump sum from family) and why we have no money so can not make payments of any kind (which is 100% true and we can document that we are broke).

We have spoken to Chase reps 4 times over 4 months and written to them once. First 3 calls/reps told us our account was not eligiable for a settlement and to call back in ’30 days’ and ask again. But also, first call/rep told us $19k ‘could work’ and 3rd call/rep told us $17k ‘could work’. On our 4th and most recent call we got passed through to a ‘manager’ (I requested this) . He told us ev erthing we had been told by first 3 calls/reps was completely wrong. He told us our account will never be eligiable for a settlement as the principal part of our debt must be paid down to a ‘certain amount’ first.

However, he said he could not tell us (or give us an ‘idea’ even) what amount of the principal has to be paid down. He said this ‘princiapl pay down’ requirement (before being eligiable for a settlement) is a Chase ‘regulation’ and can not be changed for ANY reason, but that he was not privvy to what amount (%) of principal had to be paid down.

He insisted Chase frequently turns down settlement offers that then resulted in the debtor filing bakruptcy so Chase ended up with nothing. He agreed it made no sense but that there are ‘regualtions’ they must abide by. He encouraged me to do a 60 month payment program, even though I told him we can’t make the payments.

See also  Chase Bank Kicking the Shit Out of Attorney Run Debt Settlement. Not the Safe Harbor Some Think.

Based on the above, my question is, in your opinon: are Chase giving us a ‘song and dance’ of nonsense hoping we’ll opt for a 60 month payment program, when in fact they will accept the $10,000 settlement ‘in a month or 2’? Or – is it likely that they will never accept a settlement in which case we either have to file bankruptcy or they will sue us, (whichever happens first?).

Many thanks!


Dear Sarah,

Before I answer this can you give me an idea about what your total debt situation looks like? Is this your only debt or is there more we need to worry about?

I’m guessing you have no big assets or equity to your name.

What state do you live in?

It’s important that when it comes to dealing with creditors, often logic and commonsense are not the order of the day.

Please post your responses and follow-up messages to me on this in the comments section below.


You are not alone. I'm here to help. There is no need to suffer in silence. We can get through this. Tomorrow can be better than today. Don't give up.

Damon Day - Pro Debt Coach

28 thoughts on “Chase Bank Says They Won’t Settle Our Debt And Want Us to Go Bankrupt. – Sarah”

  1. The problem with most people in debt is you don’t devise a plan the moment you realize you can’t pay anymore. I owed Amex 65k and a Visa card for 55k stopped paying in the summer and just settled both for 20k each. This is exactly what I wanted to pay 8 months ago but waited for the right time and story to get what I wanted

    Even if you get served you can still settle and if they bank doesn’t take it make sure to document it for court

  2. Milton here from Complete Debt Solutions, my advise to you is to wait, let the account charges off, meaning the bank will either sell the debt or pass it to a collection agency but before they do they will call you with a settlement offer. Chase are pretty good to work with, your error was offering the $10 000 settlement.

    My advice to you is to wait, they definitely call you when the account is 10 days away from being charged off and that`s when they are at your mercy, the banks dont want to send it collections agencies because they will end up paying 40% or 50% to the collection agencies or lawyers. if you need more free advice feel free
    email me at [email protected]:disqus .us

    Keep your settlement offers on record, might come in hand when you are being sued.

    •  Dear Milt,
      Collection agencies and collection attorneys WISH (to bad there is not a way to enlarge text in comments – that there WISH should be 3 times larger) they got paid 40 to 50%.
      Current rate averages are less than 20%.

      Milt – If you got that wrong when its published information and readily available to anyone who wants to find it, what else you gonna get wrong?

      Sorry bub. No soup for you.

    • Hi Milton,

      I have a question for you concerning a settelment agreement that I have with BOA. In the Settelment letter is says “As required by federal law we will honor you optout request with in 30 days.” Does this mean I can pull out of the deal? A portion of the money has already been transferred but not yet the full amount. What do you think?


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