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I’m Doing Debt Settlement and Getting Sued by Chase Bank. – Darlene

By on May 5, 2009
I’m Doing Debt Settlement and Getting Sued by Chase Bank. – Darlene

Darlene

“Dear Steve,

My husband and I have a judgement against us from Chase for $5200. Our debt settlement company said they would answer the summons for us. The lawyer from Chase said they don’t work with debt settlement. We told them we didn’t have the money to pay (may be losing our home). The next thing we know we received some documents from the local justice court saying “Judgement by Default Without Hearing.” We can’t afford a lawyer and dont know what this means.

The documents we received read “Motion and Affidavit For Entry Of Judgement By Default Without Hearing” Does this mean we just have to find a means to pay it without Chase taking us to court?

Darlene”

Dear Darlene,

There is no rule or law in the United States that any creditor must work with your appointed third-party. In this case, your debt settlement company.

Working with a debt settlement company does not prevent you from being sued, even if the debt settlement company responds to any document or summons on your behalf.

The law allows the creditor to pursue their contractual rights through your agreement with the creditor, and under the law, in the courts.

If you are not paying Chase and have broken your agreement with them, they can sue you and you seem to have no defense to that claim.

I’m not going to address the specific issue about the document they asked you to sign except to tell you to immediately contact an attorney licensed in your state for specific legal advice or contact a local bankruptcy attorney, to go bankrupt and end this issue.

If I was a betting man, which I am not, at least with real money, the safe bet would be that you will lose this fight with Chase, be successfully sued, and that will lead to a judgment against you and a lien against property, wage garnishment, or bank account garnishment.

READ  Daisy Calls Again. Uncertain if Debt Settlement or Debt Management is Right for Her. - Get Out of Debt Podcast

Somehow I need to convey to you in a loving and caring way that you need to pull your head out of the sand on this issue and go get legal help. Once you do that, this situation with Chase bank will be resolved, probably through bankruptcy. Let me know what you decide to do.

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About 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.

16 Comments

  1. Arlenecrr

    August 11, 2011 at 4:06 am

    Hi Steve
    I had this company call me and said that Chase had sold my loan 6x and Bank of America had sold my loan 5x and I could file a judgement against them I have file bankrupt because I got hurt at work and my income went from 95,000 to 12,000 a year and it has been hard for my to keep the payment up. But I am I have even rented the living room out. Trying to hold on to my houses. My house with Chase in California is up side down but when Chase modificate my loan they did not put it at market value so I am about 150,000 up side down and the one with BoA is only about 15,000 up side down. The laywer said I can file a judgement against them because they have got paid over and and over.

    • Steve Rhode

      August 11, 2011 at 1:52 pm

      Does this lawyer want a fee from you to do this?

      • Soylichita2

        March 8, 2012 at 8:09 pm

        I have also been sued. Mine is by Discover for $12,000. My problem is that that is not my only debt but only 1 of other 5.. My question here is if I hire a lawer…do I need to do that for every debt that I have?? I jave only being sued by Discover for now but if i resolved this by spending more then another card do the same thing what will happen to me?? What do I do?.. Im working 20 hrs a week…really not making any money right now. I tried to talk to Discover lawers today and they want all the money..30% now and the rest on payments for 11 months…I can’t do this.

  2. Steve Rhode

    December 1, 2010 at 12:20 pm

    No punt taken. So what other options would you suggest in this situation? And I’m not a lawyer.

  3. Yourjunk2010

    December 1, 2010 at 12:05 pm

    Steve’s clearly an attorney that’s why his bias opinion is to seek legal help without looking at all the options. No punt intended steve just like to make money rather than look at the best thing for the consumer.

  4. Yourjunk2010

    December 1, 2010 at 5:05 pm

    Steve’s clearly an attorney that’s why his bias opinion is to seek legal help without looking at all the options. No punt intended steve just like to make money rather than look at the best thing for the consumer.

    • Steve Rhode

      December 1, 2010 at 5:20 pm

      No punt taken. So what other options would you suggest in this situation? And I’m not a lawyer.

  5. DANIEL MONICO

    May 17, 2010 at 1:45 pm

    THE ECONOMIC STIMULUS SACT OF 2009 PROVIDED FUNDS TO THE BANKS LIKE CHASE TO HELP IN THESE SITUATIONS. I HAVE GONE THRU CMS- WHICH IT SEEMS IS A SCAM. I AM NOW BEING SUED BY CHAse too. i plan on fighting it, getting cms investigated and seeing exactly what i can do to help rid myself of any credit card debt. filing for bankruptcy is an option. before i do that i will pursue this economic stimulus program. the government gave the banks money for this purpose.

  6. Bernice

    May 4, 2010 at 4:33 pm

    Steve,

    I received a summons and it indicates I have 30 days to respond. On the summons it says, “there may be a court form that you can use for your response. They provide a website or recommend obtaining the response from the courthouse. I cannot find the form and the courthouse didn’t have it. I am also having a hard time finding an attorny who handles summons. If I don’t file a response, should I just go to the court date anyway?

  7. Jonathan

    March 23, 2010 at 1:26 pm

    Steve-

    Have you checked out http://www.ConsumerRecoveryNetwork.com ? I had a great experience with them. They advised me during the process and I settled $130,000 for $40,000 in 6 months. CRN charged me $1150.

    Pretty good deal.

    It looks like you have an incredible base of people that respect your opinion. If you have a moment, check out my blog http://www.debtsettlementstory.com and check out http://www.ConsumerRecoveryNetwork.com
    If you feel inclined, spread the word.

    Thanks.

    Jonathan Grossman
    .-= Jonathan´s last blog ..Debt Relief- So Many Options =-.

    • Steve Rhode

      March 23, 2010 at 1:54 pm

      Jonathan,

      I do know them and they are really nice people. Thanks for the comment.

      Steve

  8. Joe

    June 1, 2009 at 1:32 pm

    What kind of crappy grammar is that, Steve? You misspelled “you’re” right after calling yourself a writer.

  9. Jose

    May 29, 2009 at 6:09 pm

    What kind of crappy advice is that? Do some research on appealing that summary judgment and get the opportunity to defend yourself.Do some research on how the bank did not fund the loan , you did. Therefore your contract is void with them due to non disclosure, the bank provided no consideration to make the contract enforceable and that the bank cannot prove that they suffered a financial loss so there are no damages to collect.

    • Steve Rhode

      May 30, 2009 at 12:21 pm

      Just what every writer needs. A comment that begins with “What kind of crappy advice is that?”

      Jose, at least you’re reading the posts. Always room for alternate points of view. I could have done without the “crappy” though.

      Steve

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