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Is the Balance Liquidation Program from Chase, Real? – Jim

By on April 26, 2010
Is the Balance Liquidation Program from Chase, Real? – Jim

“Dear Steve,

Steve , I wrote to you sometime back and stated that I owed 60k on my CC’s and would like to pay this off with the equity in my house which I built myself . You asked me four questions and I sent a reply but I haven’t heard back . I think you did not get my reply .Also I got a BLP balance liquidation plan from Chase . This is a 60 month program that lets you pay off the balance at a reduced rate is this for real or another under handed offer from the CC company.

Thanks

Jim”

Dear Jim,

I get so many emails that the best way to get info back to me on a specific question is by posting it as a comment on the original Q & A.

The Chase Balance Liquidation Program (BLP) seems like the latest offer but I hear they are testing a different version of the program that allows you to repay 60% of the balance over 60 months. It is called the 60/60 plan.

Ironically I just answered another question that also mentioned the Chase BLP. You can read that here.

So is the BLP real, yes. It is an offer from Chase to allow you to repay your balance in five years.

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.

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P.S. Be sure to read ‘The Secret of Surviving Through Difficult Economic Times. What I Learned On My Journey‘.

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READ  I'm Currently in Balance Liquidation Program With Chase and Take Charge America Plan. - Justin

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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.

24 Comments

  1. yehway

    January 10, 2011 at 8:02 pm

    Assuming one is currently enrolled in the BLP–what happens if you can’t continue to meet the terms–[beyond returning to the original terms–which obviously could not be met as well]? I mean–at what point do they consider settlement–what has to happen before they are willing to go there.
    Thanks,

    GaryS

  2. Anonymous

    January 11, 2011 at 1:02 am

    Assuming one is currently enrolled in the BLP–what happens if you can’t continue to meet the terms–[beyond returning to the original terms–which obviously could not be met as well]? I mean–at what point do they consider settlement–what has to happen before they are willing to go there.
    Thanks,

    GaryS

    • Henry

      November 16, 2011 at 2:26 am

      I am in the same boat…in the BLP plan…but fell behind and want to settle my $9k bal for 33%.  Have you learned anything.

      Henry

    • Henry

      November 16, 2011 at 2:26 am

      I am in the same boat…in the BLP plan…but fell behind and want to settle my $9k bal for 33%.  Have you learned anything.

      Henry

      • Mookamama

        February 3, 2012 at 1:38 pm

        Whatever  you settle at, the rest of the money is considered ” income ” and you have to pay taxes on it for that year.

        • Michael

          February 3, 2012 at 3:29 pm

          Mookamama,

          Your blanket statement is not correct.

          Forgiven debt such as will occur when you settle a debt for less than the balance owed, and when the amount is in excess of 600.00, is treated as income by the IRS.
          Not everyone will pay taxes on forgiven debt. If you follow the insolvency rule and apply it to your financial circumstances at the time of settlement (assets vs liabilities), you may not pay any tax, pay some tax, or pay full tax on the forgiven debt. It is different for each person.

          Those who are worried whether they will owe tax on forgiven debt should contact a tax professional to discuss the issue. Not all tax professionals are familiar with the insolvency test. You can look for one that is, or point them to this IRS web page:
          http://www.irs.gov/individuals/article/0,,id=179414,00.html

  3. Belugs

    January 4, 2011 at 9:08 pm

    Sorry, accidentally clicked “like” instead of reply! Yes, i am speaking as a DMP provider. I agree with you 100% that the client must qualify for the hardship program.

  4. Observer

    January 4, 2011 at 8:13 pm

    Good to know Rob. Thanks.
    I am assuming you are posting as a DMP service provider and this is your direct experience with Chase? Not questioning the fact stated, just want to verify it is coming from someone in a position to comment due to their first hand experience and recentness thereof.

  5. Belugs

    January 4, 2011 at 6:47 pm

    Agree with what you wrote about what the account holder qualifies for. Through DMP Chase DOES offer 0% and a 10% balance reduction

  6. Observer

    January 4, 2011 at 5:16 pm

    Chase also offers much lower in their direct to consumer hardship plans. It depends on what the account holder qualifies for (and a little bit of timing).

    Chase will offer direct to consumer hardship plans at zero percent to those who qualify.

    DMP program providers, to my knowledge, cannot obtain zero percent.

  7. Robnagpal

    January 4, 2011 at 12:21 pm

    Chase offers much lower on a DMP program.

  8. Cass

    January 4, 2011 at 8:56 am

    Hello,
    I owed $19,000 some odd dollars on our Chase Credit Card. I was paying approx. $650.00 per month and was not getting anywhere at all on my balance. Everything was going to interest. So, I called them after getting the balance liquidation program offer, they reduced my interest to 12% and set me up for payments of $450.00 per month with an automatic debit (requirement). This was in March of 2009 and I have already reduced my balance to around $15,500.00. Much more of my payment is going to principal now and I’m actually accomplishing something. The entire balance will be zero when my 60 month period is up, pending I don’t make any extra payments. It really is an awesome service.

  9. Cass

    January 4, 2011 at 1:56 pm

    Hello,
    I owed $19,000 some odd dollars on our Chase Credit Card. I was paying approx. $650.00 per month and was not getting anywhere at all on my balance. Everything was going to interest. So, I called them after getting the balance liquidation program offer, they reduced my interest to 12% and set me up for payments of $450.00 per month with an automatic debit (requirement). This was in March of 2009 and I have already reduced my balance to around $15,500.00. Much more of my payment is going to principal now and I’m actually accomplishing something. The entire balance will be zero when my 60 month period is up, pending I don’t make any extra payments. It really is an awesome service.

    • Robnagpal

      January 4, 2011 at 5:21 pm

      Chase offers much lower on a DMP program.

      • Observer

        January 4, 2011 at 10:16 pm

        Chase also offers much lower in their direct to consumer hardship plans. It depends on what the account holder qualifies for (and a little bit of timing).

        Chase will offer direct to consumer hardship plans at zero percent to those who qualify.

        DMP program providers, to my knowledge, cannot obtain zero percent.

        • Belugs

          January 4, 2011 at 11:47 pm

          Agree with what you wrote about what the account holder qualifies for. Through DMP Chase DOES offer 0% and a 10% balance reduction

          • Observer

            January 5, 2011 at 1:13 am

            Good to know Rob. Thanks.
            I am assuming you are posting as a DMP service provider and this is your direct experience with Chase? Not questioning the fact stated, just want to verify it is coming from someone in a position to comment due to their first hand experience and recentness thereof.

          • Mookamama

            February 3, 2012 at 1:42 pm

            Do you know what the qualifications are?   I was put on the program with VERY little income and alot of bills.  But, I was givn payoff at100% and 2% interest.   It is VERY difficult for me.  
            The debit isn’t really mine.   A family member took cash advances on my balance transfer checks.  She is having a great difficulty paying back, even at the rate in the plan.  ANY ideas?
            By the way yesterday I received a letter that I was taken off the plan on one ( 1 ) of my cards because they said I missed two ( 2 ) consecutive payments and therefore couldn’t be paid off by the time given.   But, I didn’t miss ANY payments.   They were late.   But, I was told I could be late with payments in this plan.  ANY info on that?

          • Steve Rhode

            February 3, 2012 at 2:30 pm

            Unfortunately it is your debt.

            It was my understanding that late payments would knock you out.

            But from what you state, it does not sound like the plan was going to work for you anyway. It seems the payments are too high for you to continue with.

            Let’s start with the basics.

            I’d suggest you first read How to Get Out of Debt. The Honest and Unvarnished Truth and The Truth About The Success Rates, Failure Rates and Completion Rates of Credit Counseling, Debt Settlement, and Bankruptcy. They will give you a great overview of what we need to deal with to get you moving in the right direction.

            Then use the free How to Get Out of Debt Calculator to review your options.

            After that, come back here and comment about what seems to make the most sense and let’s discuss that.

            Does that sound like a reasonable approach?

            Steve

          • Michael

            February 3, 2012 at 3:37 pm

            Mookamama,

            Creditors test different pilot programs for payment reduction and even settlement.

            I do not think Robnagpal’s comment is relevant anymore and he/she did not answer Observer’s question whether they were commenting from a place of experience. Internet posts are just not accurate sometimes.

            A late payment is considered a missed payment when on many of these hardship repayment plans. In some instances the creditors cannot offer to get you back on a payment plan due to regulatory restrictions or oversight guidance.

            If you were told you could be late with payments and still maintain the benefit of the plan, unless you have that in writing, I am sorry to say you are fighting an uphill battle.

        • Belugs

          January 5, 2011 at 2:08 am

          Sorry, accidentally clicked “like” instead of reply! Yes, i am speaking as a DMP provider. I agree with you 100% that the client must qualify for the hardship program.

          • Michael

            February 3, 2012 at 4:51 pm

             Sorry Rob and Mookamama, I missed this reply when I posted my response to Mooka earlier.

            Rob, are CCA’s still able to secure CTA type payment plans with Chase?

  10. Jim

    May 1, 2010 at 7:35 pm

    Hi Steve , I need some more words of wisdom . I have sold all I hope never to sell as you said to do but I’m still just getting by . I have 60+K on 5 cards . I’m self employed in home improvement and with the down turn in the economy I lost a lot of business . I have a S Corp. and I used my personal CC’s for the business . I don’t have enough years let to pay this off (62) , I only see one way out . I do not share any finances with my wife as when we were married we both had our own property so we left it that way . I want to keep my house as I built 85% of it myself . I’m making my first and second mortgage ok and some of the CC payments not all as one has gone to collection . If I file for bankruptcy can I keep my house ? , Will this effect my wife’s credit ? , Can the collection attach my company checking account ?. I have a appointment this week with my lawyer just to get some legal advice . Thanks Again Jim

    • Steve Rhode

      May 1, 2010 at 10:11 pm

      Jim,

      Go talk to the attorney this week and then check back in. It sounds like we are close to you taking some definitive action and that’s a good thing.

      Steve

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