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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.

Sincerly,
Steve

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.

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

READ  I'm in a Balance Liquidation Program and in Collections With United Recovery. Should I Consider Bankruptcy? - Jim



About the author

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

  • 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

  • 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

    • 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

    • 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

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

        • 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

  • 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.

  • 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.

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

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