Settling your Chase Credit Card Compared to a Hardship Repayment Plan
I am behind with payments to Chase now for 3 months. I was thinking to later settle the debt, but they are only offering to reduce payments and interest for the life of the balance if payments are made from my checking account in the same amount every month for 60 months.
Is this Chase hardship plan the right way to go, or should I hold out to settle this account?
—RB
First thing to do is consider your current and projected income. Does your budget suggest you can afford the lower Chase credit card monthly payment? Does your cash flow and monthly budget show you will be able to continue paying your Chase credit card for 5 years until the balance is paid off?
Balance liquidation plans and debt settlement are both available on a Chase credit card.
If you can swing the payment the reduced interest hardship monthly repayment plan is a good program for you. If you do enroll in the plan, be sure to inquire whether the 30-60-90 day late payment notations will be brought current on your credit report. Chase and other credit card issuers (like BofA, Citi, Discover, Capital One, HSBC) will offer what is called re-aging to account holders that participate in long term repayment plans. This is when your credit card is enrolled in an internal repayment plan, or as part of a consumer credit counseling services plan.
Re-aging is generally only done once during the lifetime of the account, and hardship plans are generally not offered again later, if you fall off of one.
These hardship repayment plans can be for 60 months and carry a lower interest rate. I have even seen zero interest rates on some credit card plans. 60 months to pay a lower monthly payment is great! Or is it?
You have to be confident you can make the now lower monthly payment on time all the time. If you miss one you typically lose the benefits of the plan, your payments go back to where they were etc. This means if you were paying for 18 months and suddenly had a random set back or expense, you are off the plan and have not resolved the Chase credit card. If this is a major concern you should compare the monthly repayment plan with a debt settlement approach.
Banks like Chase will change system wide policies for offering hardship repayment plans from time to time. One of those changes may be to stop offering long term hardship repayment plans (the 60 month lifetime of the credit card balance version), and switch to offering only the 6 and twelve month temporary hardship payments. Here is an article series covering hardship plans.
If you are looking to get your credit card monthly payment lower with not just Chase bank, but other banks like Wells Fargo, Bank of America, Capital One etc., it would be a good idea to talk to a nonprofit consumer credit counseling agency about what they can do for you. The credit counseling industry has long standing relationships with virtually all of the credit card banks like Chase and the others. An agency can sometimes get you a better interest rate reduction and lower monthly payment across all of your credit cards, rather than you just “one-offing” each account, and perhaps only being able to settle on 6 and 12 month hardship plans which can backfire on your budget when the payment and interest rate reduction expires.
Talking with a nonprofit credit counselor is free, and worth the information you will get, even if you do not go that route. You can speak with one today at 888-317-8770.
Settling credit card debt with Chase or a debt collector.
You mention you were thinking of settling your Chase credit card. What was your plan for doing so? What is the balance of the account now? How much money have you saved and what amount can you add over the next few months? Do you have additional credit card accounts that you are late with?
If you took the money you would have paid in the lower monthly payment hardship plan and saved it up for 6, 12, or 18 months, how much would you have?
This is how many people settle their credit cards. By saving up money over a period of months. If you miss the opportunity to settle with Chase directly, after 6 months of non payment you typically will be able to settle the account with a collection agency.
In order to maximize your percentage savings in settlement and mitigate the risk Chase places the account for aggressive collection action, there are some things you need to be doing and things to avoid doing. If raising the money to settle with Chase in the first 6 months is not an option, there are different details to learn in order to be successful with your Chase credit card settlement.
I would encourage you to start reviewing my debt settlement series to get a sense of what settling credit card debt with Chase is going to look like for you.
If you would like to consult with me directly, you can call me at 800-939-8357 and press option 2, or you can submit a consult request.
Anyone reading with questions or concerns about Chase credit card hardship payment plans, or about settling Chase credit card debt instead, is welcome to post questions in the comments below for feedback.
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About Michael BoveeMichael started CRN in 2004 with a mission to provide people in need with detailed debt and credit help and education. Michael has participated as an expert panelist in federal consumer protection rule making, collaborated on state law changes governing debt consolidation, has worked as an expert witness in court matters related to the debt relief industry, and is a regular contributor to several personal finance websites.
Michael, I have 2 CC’ds that I need help with. I’ve been putting money aside with Americor, but frankly, I’m not happy with their negotiation skills. It seems you can do better than 50% I have a Chase card with an original balance of $15,811 and a Pen Air Federal Credit Union CC of $2,293. I have $7,000 cash and I feel this would be enough to make a deal with both of these accounts. I haven’t been paying on these accounts for about 18 months. Please let me know if you feel you can help get me down to the 25-30% level.
-Mark
Given the age of the debts I feel pretty good about hitting your target. You can click on the get debt help tab in the upper right, or anywhere on the site, and fill in your user profile and schedule a call with me to get started.
Divorced in April 2016
Divorce was amicable, and ex agreed to pay Chase credit card which is in my name.
I just received a phone call stating my ex has not paid a dime in almost 155 days.
The account is now closed, and Chase wants to settle at 50%
Since my credit has already been damaged, should I wait and allow the debt to be charged off in order to seek a cheaper settlement with the new debt buyer?
Chase stopped selling debt in 2013, and has not kicked back up again. You will be settling with a third party collection agency Chase will send your account to after charge off. And yes, if it were me, I would wait to settle with the collection agency where a better deal can be reached.
What is the balance owed on the account?
Current balance is $14,200.
Is a charge off “worse” on my credit report, as opposed to being late?
Once you settle the account, it won’t really matter whether it was charged off or not, the end result is the same.
Done well I would settle this between 20 and 30 percent. If you need help you can start a chat with the bot on the screen. That will ask you some questions that will then come to me so I can set up a phone call with you.
I got on a plan with Chase. 0% interest and payments each month. It was at 9300.00 it is now at 3800.00 I lost my business and my husband at the time it was call after call. I did not negociate I just wanted it done. I should have negotiated the late fees and interest charges if I had done so I would owe like 2000.00 now which I can pay off is there a WAY i CAN DO THIS??? I have called the solutions line a couple times and no luck
.
I would be surprised if Chase backed out fees and interest after all this time has gone by.
And if I stop paying now what will happen? I have paid back more than 40%
If you stop making payments to Chase now they will put your account through the normal debt collection paces. You can settle your Chase account for less later on if you like.
Hi Michael
I just got a call from chase cards. I have to cards. One 112 days past due for $900 and one at 76 days past due for $4030. They said I can make them an offer for settlement for both cards but only my smaller card will be charging off the 22nd of this month. They said if you gave us 75% we could probably work with you. I know I can get this after charge off around 35-40%,so I was going to come back at them with a 30% offer but should I include both cards in the negotiations or wait until my larger balance is closer to charge off. I find it odd they are charging off so soon and not waiting closer to 180 days.
I heard a rumor a couple years ago that Chase was going to start charging off credit card debts 60 to 90 days earlier than usual. I saw them do it a few times, but not across the board. It would not surprise me if they charged off your credit cards early.
I would not settle right now. The settlements you can negotiate with Chase today are not optimal. You can get to as low as 20% with some of the debt collection agencies they send accounts to. I would wait.
Thank you I will wait. Can I expect to get that low even on my small balance of $900? Most everything I have read has leaned towards lower balances not accepting less than 40% settlements.
They keep trying me to make a small payment to prevent charge off for a month and also to make multiple payments against a 65% settlement over a few months. I continue to tell them I only have a lump sum and can’t make payments .
I generally see small balance accounts settle for more on a percentage basis. I also see exceptions.
Hello. Thanks for all of your information. I currently have 3 chase CC’s totaling about 23K. I have always made my payments on time. I have paid off the CC a few different times over the past 5 years and have run into a wall now. All three are maxed out and just making the minimum payments with interest rates around 16%. I would like to get this paid off through settlement. The best approach is to I assume just stop paying. Is it possible to call Chase and say I have run into a hardship and cannot make my payments any longer. I would like to settle at 40% of my current balance. Telling them I have talked with a credit counselor and BK lawyer. What are the odds that would work vs. just stop paying and ignore them for a few months?
The odds are zero. You cannot get a good settlement from Chase with out becoming the statistic they treat a certain way. That means many months of payment default.
I closed my business last month, I have a Chase line of credit with a current balance of 80k with a personal grantee. What can I do to settle this at a lower amount? The business is closed but I don’t want my assets garnished or my credit score tarnished.
You typically have to stop paying in order to settle for less. With Chase, you will often get the best bank for your settlement dollar by being late 6 or more months. That can impact your credit score in a very meaningful way. If your credit score is more important than resolving the debt you will not want to settle.
Chase is not suing currently, and they would have to sue and get a judgment before your assets were at risk.
Hi I have a 14.500 credit card bill with chase I have never been late but I can not get this bill down I have very good credit I do not won’t to file bankruptcy is there a way to negotiate this bill down and close the account
You can settle the balance for less with Chase, but that is typically going to mean falling several months late with payments. That means your credit scores will be hit for a while. Is that something you are okay with?
Sorry i need to add that in 3 months i willhave 6,000 should that be offered as a settlement. They said they will be reporting every month to the credi bureau the status.
How long until you have 3k?
I have a charge off with chase freedom cc after 125 days of being late. They sent me to their recovery department. Total is 12,000. I was on their repayment plan to catch up got sick and was not working for 2 months. They offered me a settlement of 9888 and wanted 549 a month. Could i negotiation a smaller pay out. They did say it was still early charge off just happen on Jan 4, 2017.
Fill out the talk to Michael form in the right column Roxana. I will email you to set up a time to connect on the phone. Done correctly you can see as low as $3,000 (ish) on that settlement.
Hi Michael….
I have an account with Chase for approximately $25000. Most of this debt was incurred by my ex-fiance who refuses to pay me back what he owes me. Because of him I am in financial ruin and my credit score has gone from 820 to 495. I have not made a payment to Chase in over a year. I joined a debt relief firm that promised me they could negotiate the debt down on my behalf but they have made no progress on this in the past year. I am considering canceling my program with them and trying to settle with Chase on my own. I recently lost my job and was diagnosed with cancer. I have no savings with which I can pay them now. I am wondering if settlement agreements are ever allowed to be paid out in monthly installments or if they always require a lump sum all at once? I desperately need to find a way to resolve this so I can get out of debt.
I also owe $7000 to Discover but I have a hardship agreement with them to repay the amount over 5 years at 0.99% with a monthly payment of $143.
Any advice you can provide would be much appreciated.
How much have you got saved up with that debt relief firm right now?
Have you received any collection notices from anyone other than Chase, and if so, what is the collection agency name?
Assume for a moment you were able to settle with Chase for 8k. How long does that take to come up with?
Add the 8k to settle Chase, and the 7k-ish total you will be paying over time to Discover. Would you consider filing chapter 7 bankruptcy if you could knock that 15k down to 2k?
I would like to settle my chase debt that is several years old. it went to two different credit card collection agencies and when I tried to settle with the last just a few days ago, they no longer had it. Its about $7,000 and hasnt been paid since about May of 2013. I called the phone number they provided and it was not an active #. Next steps?
Contact Chase and find out if they have it warehoused or out with another debt collection agency. You can negotiate the settlement directly with Chase if they have it internally, or settle with the collection agency once you learn who it is.
How much are you prepared to pay to resolve the 7k balance?
they were offering 1200 in 3 payments. I should have taken it then.
I am not confident you will be able to settle it for that low anymore if Chase warehoused it. I see them hold steady at 40% in some of these cases.
Hi Michel hope you had a nice thanksgiving. I recently got a letter from chase on two cards stating: if you stop paying on the balance liquidation program the account will be written off as bad debt and reported to the credit reporting agencies as “charged off”. We may have other solutions available to you. If your financial situation extends beyond your account with us and you need a more comprehensive financial solution we can help connect you to a credit counseling agency . I have missed two payments and want it to be charged off so it goes to a collection agency at that time I will try to negotiate 30%. Is this a true statement? Or should I call Chase and try to negotiate now based on the letter?
If it were me, and my goal was to negotiate a settlement on my 2 Chase accounts, I would not respond to the letter. I would be waiting for my opportunity to settle for the best savings, which right now, is with a third party agency after charge off for most of us.
Michael, I am a single woman, 75 years old living on social security benefits of $1074 monthly. I have not been employed for several years and do not receive any other retirement benefits. Since being diagnosed with Non Hodgkin’s Lymphoma two years ago I have been living with my son and his family. I have an older RV that I hope to live in part time soon.
My assets are: 2006 Travel Trailer. Value around $6000.
2007 Honda CRV. 168,000 mileage. $5,000 to $6,000 Value
Savings acct – $15,000
Checking acct – $1,200
I owe Chase Credt Card $9,000. Original amount was about $23,000. I have been paying the minimum each month now for many years. I am never late with the payment and overall have very good credit but I can no longer continue to pay this monthly payment. I have been thinking I could just stop making the payment as I have no real assets or offer to settle with them for a one time payment of $1800 (20% of debt). What would you recommend I do? I might mention that this money was used to help a family member. They were going to pay it initially but have been unable to do so.
Your input would be greatly appreciated.
Settling with Chase requires you to be late with payments. To save the most money you will likely want to wait until your account is charged off and sent to a third party debt collector. This is at around 7 to 8 months since you last made a payment. And this is where you can target 30%, and sometimes a bit lower.
Settling at 20% of the balance on Chase accounts is just not that common anymore. You can get close to that when done right though.
Your credit will take a hit from this, but it will bounce back.
Hi Michael,
My sister has $9,300 in unpaid credit card debt with Chase from 2009 and I’m trying to help her settle it. When she called they said they no longer negotiate unpaid debt because of an agreement made in August 2015 with their debt collectors. Doesn’t sound right so I am going to call the recovery department’s direct line to discuss it. Will they allow me to negotiate on her behalf? Additionally any other questions I should be able to answer other then her personal information. I watched your helpful video about being prepared to discuss the hardships one had that led to the accumulation of the unpaid debt. Any guidance is greatly appreciated.
Thank you!
Is Chase still showing on her credit reports?
When was it that she last paid her regular minimum payment to Chase?
I might skip any effort to settle depending on your answers.
As for the credit report, It was showing up as of 2 years ago.
Last payment was made 11/2009.
Thank you!
A debt with Chase that has not been paid in 7 years is either off her credit reports now, or will be in 5 to 6 more months. For many, there is little reason to tackle old debts like this.
What is the goal she is trying to accomplish by settling her Chase account?
Thank you, Michael! The goal is to get the debt off her Credit report and repair her credit so she can begin building up her credit again.
I would first confirm she stopped her regular minimum payments in 2009, and then just let this fall off. Settling now means paying a good chunk of money. I might use that same amount of money to set up a secured credit card with Discover or a different bank.
Thanks Michael! Yes, I have confirmed payments were stopped in 2009. If that is the case, is it possible to get that removed from her credit report eventually? Want to be sure she can restore her credit and begin building it up again without this looming.
Thank you!
It should come off no later than 7 and one half years from when she stopped paying back in 2009. You do want to monitor the situation to make sure it does. You can dispute that with the credit bureaus if necessary.
I have 3 credit cards totaling $44,863.27
I am current on all 3 cards, paying the monthly minimum, but am living with little to no margin and the debt increases each time I over draw my bank account as my overdraft draws directly to my credit card.
What are my options? I have a small retirement account I could draw from but that would incur huge penalties.
Two of the cards are with Chase totaling $26,000 and $18,500 with Bank of America.
Fill in the talk to Michael form in the right column of this page Bruce. When I get that I will email you to set up a time to connect on the phone and go over alternative ways to pay settlements to Chase and BofA. You have more time than you may be thinking.
Hi,
I owe Chase credit card 10,000.00. they are charging me higher interest, which makes my life very miserable and I just wanted to get rid of them, I would like to settle with them, what would be the best way to communicate with them.
What are my option ? Please provide your advise
Thanks
Are you behind on your payments to Chase? If so, bu how many months? What is the interest rate Chase is charging?
Hi Michael,
Presently my only steady income is SS of $1020 per month I occasionally get some part time acting work nothing steady. My rent alone is $700 per month I’ve gone through my savings and IRA. My Chase balance is $13,452.95, interest is 12.49% min payment of $279 is due on 10/22/16 I don’t have it. I also have a BOA card I owe $16,183.51 interest rate is 7.49% min payment was $257. I’ve missed the Oct. payment. I called and told them I’d be late however, I can;t afford to pay it. What the hell am I going to do?!
If you cannot pay, you don’t pay. There are debt relief options to consider.
I would probably start by consulting with a bankruptcy attorney about your options with a chapter 7.
Hi Michael, my husband and I want to buy a home but my husband has a chase card that he hasn’t paid in about a year. I think it went into collections but I’m not sure with who, he rarely gets calls from them anymore. He owes 2,100. I know it needs to be paid to qualify for a house but do you think they will take less than that or do I have to pay the whole amount for them to consider it paid?
You should be able to get it settled for less. Call Chase and find out which collection agency they have it out with currently. Post who that is and lets go from there.
I just called chase and they said chase is handling its own collections so I guess they never sent it to another company
Hi sir. My chase credit card is in collections and past due since 2011. I went through a bad financial hardshipand couldnt pay it. Now since im currently trying to buy a home chase wont let me make a payment plan bc the account is so old and only gives me the optionnto either settle or make faith based payments. They offered me a settlement of 2700 but i dont even have that. I really need some help bc i need my credit score to be higher to require a home loan. Thanks
What is the balance owed on your Chase account?
The best settlements with Chase come before they warehouse your debt (which is what they have done). Sometimes you can engage in good faith payments and still get a home loan through after you show 3 or more months of payments. But I would talk this over with your loan officer or a mortgage broker before you go about the payment plan.
Do you have to be late on payments To Get Hardship reduction?
Will Hardship reduction damage my credit score?
You have a shot with Chase agreeing to a hardship reduction to your monthly payments while you are still current. Check out that article for more on what to be prepared for.
Hardship plans do not hurt your credit score per say.
I have been contacted by Alltran Financial to pay a Chase Credit Card that I haven’t made a payment on since February 2016. Should I at least talk to them and tell them I’m saving money to reach a settlement? I’m hoping for 50%. I’m nervous about taking to them. Past due amount is $4,077.35.
How much do you have saved up right now?
I have $1,000 saved up right now. I can afford to pay them now around $700 / month. Should I call them and see if they would do a payment plan? For the whole amount or see if I can settle for less?
I would wait until you have another $500 saved up and then tackle settling with Alltran.
Alltran should have the account for a total of 2 to 3 months. Do you know when they got it?
Do you have other debts to resolve than just this one account with Chase?
Sept 8, 2016 is the notice that I received from them. I have one other credit card with Barclays that is coming current. I’m on the tail end of the hardship repayment plan with them. I also have a student loan that is current, that I’m working to pay off. That’s all. :-). 4K to Chase, 5200 to Barclays and 11K to Student Loan, after all that, I’m debt free.
Okay, thanks. You likely have 6 to 8 weeks to still work out the settlement with Alltran.
Hi Michael, first I don’t care about my credit report, my credit standing. It will be damaged, perhaps beyond repair, for some years, it’s OK. I have debt with BofA (12K), and Chase (10K). I’m 4 months into non payment on all cards. I sent letters offering settlement of 10%, maybe to the wrong addresses, but I’m sending again. I realize they probably won’t respond to those offers, but that’s all I can manage. My question is this:
While I am not concerned about my credit, I am concerned with not going to jail. I read somewhere that they’ve gotten clever with claiming to serve notice of being sued, but not really serving the summons. So people don’t even get notice they are being sued, and default judgements are won against debtors. But then on some technicality the court requires an appearance, which doesn’t happen, and then the person being sued all of a sudden has a warrant for their arrest out.
Have you heard about that? About people getting pulled into jail because of warrants issued on technicalities around non appearance for credit card debt suits? I ask because if there is no response to my offers of 10% then I will have to let them default totally, and take it to court. But if I’m not served for the court action, and there is a default judgement, I don’t want to get arrested for some related thing that happens thru the back door.
thanks for your answer.
I have hear about those kinds of things (bench warrants for not complying with a court directive). It is rare for that to happen.
You are taking this a bit too far. You will have opportunities to settle many months from now, but not for 10%. If you can take the time to save up more… along the lines of 20 to 30 percent, you may have a shot. How long until you can save up that much?
I went through a divorce a few years ago, lost my job and built up $19,000 on one chase card (SW) and $15,000 on another (chase Freedom). I have always paid the min. and continue to pay on time but have used the small amount of credit to pay off other bills. Therefore these cards have been essentially maxed out for last three years. I am finally in a position where I am making more money and have the possibility to continue paying off the min. without using the small extra line of credit. My question is around debt settlement (I am in the position where over the next 6-8 months I can potentially save up between $15000 and $18000). Since I am technically not in a hardship anymore do you think I could negotiate my current total down? If so, how badly does it affect my credit if I do? Right now even though my credit is super high comparable to my income by credit score is 662. I would like to buy a little house at some point but if I settle does that mean I am screwed with my credit? Any input would be so much appreciated. Thank you so much.
Your credit will be impaired from settling debt. It is not necessarily the act of settling that hurts your credit score. It is the fact that you have to be late with payment before Chase will offer a decent settlement. This often means have 30 day late pays times 6 (at least).
How soon is it that you are looking at shopping for a home? Settling both Chase accounts does not mean your screwed for a home loan, but the timeline for your goal matters. I can offer more feedback when I know that.
I have an account with chase, have had for at least 10 years, our Balance is around 15,000 and a citi Balance of 10,000. As a result from paying off some bills and home improvements, our plan was to refinance our home to pay off both cards but just 2 days before closing our bank stopped the refinance so we are stuck with the debt and the payments are overwhelming and we aren’t getting anywhere with them. My concern as far as hurting our credit is I have a lease on my car that has to be paid in 3 years, I have to get a loan. I’m afraid by joining any program it will hurt my getting a loan for my car. We are current on payments. I just don’t know what to do. We are soo overwhelmed.
What is your interest rate on the Chase account? How about with Citibank?
How short of making the minimum payment are you?
Is your income consistent?
Good evening Michael, I am a full time college student. I have a $7000 debt to Chase as a result of me making purchases for a friend and him not willing and not able to pay me back at the moment. I am trying to take him to court to get the money but that is not working out. What is my best option in terms of trying to pay off this debt to Chase? How do I go about negotiating a decent rate with them? Please advise.
Are your payments current with Chase now? If you are late already, by how many months?
Feedback when dealing with Chase accounts will differ based on your answers.
Sorry for the late response. I am not currently late with the payment. I go back to school next week so I will not be working as much money and I have to pay my tuition. What happens if I am not able to make the next payment or make that payment on time??
Call in for a consult to cover more of what to expect and how to navigate things from here. You can reach me at 800-939-8357 ext 2, or fill in the talk to Michael form in the right column so we can email each other to set up a good time to connect on the phone.
Does Chase credit card sue like Discover does ?
just wanting to know
Not even close. Discover sues frequently while Chase stopped suing in 2011.
Thank you for answering my question.
Hi, Michael. I had a Chase credit card that I defaulted on in 2010. In a year it will be off my credit report but I am trying to buy a house now and, unfortunately, I learned that the balance is counting towards my revolving debt with FICO as if it was an open account. Even though it has been closed for 6 years. I was sent a 1099-C cancellation of debt form and had to file to pay tax on $3,119 of forgiven/cancelled debt. They show the balance as $3,710 on my credit report. I have disputed this but Chase keeps saying the balance in $3,710 despite the cancellation of debt. So instead of 28% of my revolving debt limit, this old account puts me at %65 of my limit with FICO’s scoring model. So is there a way to get this removed. It seems Chase is being dishonest in that they tell the IRS they forgave the debt when in reality they haven’t. I am willing to pay the $591 difference between the old balance and cancelled amount if they would remove it. Any advice?
Chase can both forgive the debt through a 1099c and credit report, or at least that is pretty common today. I know where you are coming from, and I share your frustrations (as do many who have contact me about the same thing). But in order to get to the bottom of it you would likely have to litigate the issue, and that cost time and money most don’t have.
The debt can be settle with Chase still. You may have to pay in full. You could adjust or amend your taxes to account for this, and Chase is supposed to as well.
Hi Mike, I have been on payment terms with Chase for a while now, I believe 5 years or so, I have a $7k and a $10k debt with them and the account has been closed for years. If I am able to collect some funds, what settlement agreement would one in my position ask for. It is really putting a hurt on my family and we would like to reach a settlement price for both cards with them. What suggestions do you have for me.
How quickly can you raise 5 to 6 thousand dollars?
Realize that Chase does not settle for less, or typically allow for the best savings to be negotiated, when you are current. You generally have to fall behind several months with payments.
I have almost 5K in debt with chase. I lost my job 3 years ago and it has been difficult to get back on track, hence the debt has followed me since August 2013. I am currently in graduate school and I do not make enough money to pay for my monthly expenses. I currently lost my living situation and this will increase my monthly debt. I would like to get rid of this debt and be able to breath a little more.
Thank you for your time.
Is it that you can no longer afford your monthly minimum payment to your Chase credit card, or that you have not paid Chase for those 3 years?
If you are current, what the interest rate Chase is charging?
If you are in collections already, how long until you can pull together about $1,500.00?
I had a payment plan with Chase for 60 months – Laid off in September – called every month to let them know what was happening – I just found out they charged off my account and it went to ARS. I freaked out and asked for a settlement of 50% (1st Timer) of the $5549 due. Now I’m reading that they would go lower … can I call/email them back and ask for a lower amount? I really don’t have the $2775 for am I stuck with this? The payments are: $694 July 31; $694 Aug 31 and remaining balance $280 until paid off. I am still behind on bills like my house – 45 days every month … help please
If it were me I would call in to cancel the settlement if no payments have been taken yet. I would get other bills, like my home caught up, and then circle back with the next debt collector Chase sends this account to and settle with them for a better savings.
If you have any trouble let me know. We can help.
I called to cancel because they never replied to email, he made it seem like I would not be able to settle later, is that correct?
What happens next?
No. You will have opportunities to settle later.
What’s next is post an update, or call in for a quick consult, when you are ready with the funds to pay the settlement.
Hi Michael,
I have a balance of 22k (5-6 months past due) on a Chase Card that I am currently trying to settle. They had me talk to a credit counselor and we discussed my budget. I talked to Chase and they went to 10k and I requested 7k. They put me on hold and said that the settlement is off the table and that I only qualify for a payment plan due to activity in the last 6 months (My car died and I bought one 6 months ago). They said I have to pay $300 in 30 days or my account will go to the next phase of collections. The $300 will delay the process. I don’t want to pay the $300 and what next phase is there…..charge off? or my purchase of the car is past 6 months and I can settle then?
My wife settled with chase 9 months ago for 35%, so I was looking for the same deal. What do you recommend I do?…..wait it out or pay the $300?
Call me for a consult Jonah. The issue with pulling back any offer can sometimes extend into collections later on too. I am at 800-939-8357, ext 2. You can also fill in the “Talk to Michael” form in the right rail.
Hi Mike,
I have been following this discussion and it has been very helpful.
I have once chase business with 7k and one chase personal account with 19k. Charge off will occur in the next two weeks. About a month ago I attempted to settle for 20 percent down and they offered 30 percent which I declined. I have 5,200 to settle/
My questions are 1. Should I just wait for charge off in the hopes of a better result? 2. has chase resumed selling accounts? 3. if I can come up with another 1,000 will chase agree to remove the accounts from my credit report now or is there a better chance they will agree after the charge off?
Thanks!
You have no shot at Chase removing the accounts from your credit reports. You cannot pay them 3 times the balances owed and get that result. You can expect them to update your credit reports when the debts are resolved though.
You have a decent shot at settling for between 20 and 30 percent with the first collection agency Chase sends the account to if you do it right, and your situation suggests they go that low.
It sounds like you have to wait to get a better outcome because you are limited with the amount of money you can come up with. If that is the case, the decision to let this go to a third party has already been made.
I have been following up on a couple of things that suggest Chase will be selling debt again soon. I have seen some debts last paid in late 2013 show up with Midland Funding and Portfolio Recovery Associates, the two largest debt buyers in the country. Chase stopped all debt sales in 2013.
Hi Michael! I have a charged off balance of $2,233 on my Chase Rewards card. It was charged off July 2014. I received a collections letter a few wks ago from Client Services on chase behalf. I wrote them back a debt validation letter in which Chase responded that they own the account and confirmed the info provided was accurate. So i assume Client Services was assigned to collect the debt? I would like to settle the balance @ 25%. What are my chances of them accepting my offer?
Most debt collectors are not debt buyers. Chase paused selling accounts for a while now, but I expect them to start up again.
I do see Chase accounts settled for 25%. The balance is pretty small compared to the files I see get that type of deal. You have a shot at it, but a better shot at something between 30 and 40 percent.
Hi! Could gambling be a reason to give for settlement as well as overspending?
I’m trying to settle me chase. Thanks so much for your time!
How long has it been since you stopped paying your Chase accounts? Because I often encourage settling with a third party collection agency Chase uses in order to get the best outcome, the hardship, or lack of self discipline, may not become as much a part of the settlement process.
I do see Chase credit cards settle for less even when there were instances of card use at a casino. It is a rare file type, but I have worked a couple over the years.
I have about $8000.00 of credit card debt that is eating up my fixed income. Never have been late had cards over 2o years. just ready to closed them. I called a credit debt company but it doesn’t seem right. they will save me $1700. and I will have to pay $233 every month. for 27 months. they say I have to have an account balance savings of $4000. befor they will start speaking to my creditors, and not to answer my phone. it that the way it works?
That is how a debt settlement company would work with you, but is that really what you need?
Post answers to the following questions:
What are your balances and who are they owed to?
What are your interest rates on your credit cards?
Hi Mike,
Im trying to settle debt with chase bank and I can offer them a settlement of %30 only but they dont want..Supervisor said that is a rule they can do minimum only %50 ,I was very frustrated its my first time and very hard time. I am happy I searched and find your website with this. I cant afford %50 and I dont know what to do. I thinking about bankruptcy or collection but I have mortgage. I just herd from friends that the collection agency will sell my house . My question is this is true they can sell my house to pay debt? and how I can achieve from chase %30 settle not %50 . Thank you so much.
When did you make your last Chase payment?
What is the balance owed on the card?
It is unlikely in the extreme that your house would be sold to pay a credit card collection debt (involuntary foreclosure).
I will have more feedback about how to possibly get your Chase account settled for a better deal when you post your reply to my questions.
Hi Mike,
I’ve spoken with you a few times now and you’ve been very helpful in getting me through these rough times. I’ve now settled 3 cards before charge off and the last one is Chase. It’s set to charge off on 01/31/2016 and they aren’t offering me a settlement other than bringing the account current. My guess is once it charges off it will go to their internal recovery department. My last offer to them was for 40% and they didn’t even counter it. My question to you is should i just get the account current as to avoid the charge off and possible collection showing up on my credit report? My number one concern now is to repair my credit and allowing this to charge off and a collection showing up concerns me. Or, am I worrying too much about those two items showing up as the damage of the late payments is already there?
Thanks,
Dave
The credit report damage is pretty much done. And I am seeing settlements get done with the first collection agency Chase sends your account to that are often much better than what can be accomplished with Chase directly. I would hold out to settle your Chase account with the debt collector.
It is a bit odd that there is no settlement on the table with Chase this close to charge off. Were there balance transfers of size in the last 12 months? How about cash advances or a large purchase pattern? Check out my video about the challenges account use has on settling with banks.
I looked back 2 years and most of the purchases were gas or groceries. The balance with them is $6,600 the smallest of all my cards and the most difficult by far to deal with. My other balances and settlements were as follows:
Bank of America $19,460 – $4900
Citibank 29,940 – 10,455
Barclay’s 41,970 10,738
The second figure is the settled amount just giving this for the viewers that are wondering what others are settling for.
I will try again on the 29th one last time with them but really wanted to avoid having a charge off and collection on my report.
I would not get hung up on the way Chase shows up on your credit at all. Your credit got clobbered in a short period of time, and in my experience, is going to bounce back the same at this point regardless of whether Chase shows as a charge off. Given the situation I would target the best settlement result.
Hi Mike,
I settled the Chase account today, the last day before charge off for 50%. Finally the process is over and you were very helpful throughout and I’m grateful. This site and the knowledge I gained from it kept me from bankruptcy and using a debt settlement company.
Dave
Nicely done Dave! How would you rank your creditors for ease and simplicity to work with during the negotiations? If you don’t mind, read that article and let me know.
Bank of America and Barclay’s were extremely easy to deal with. By month 4 of being late they offered settlements of 40% and when I said I couldn’t come up with that much they said to try again after the next statement closing date. Those two account were settled for 25% and pretty much stress free. Citibank offered 40% at 90 days late then sent it immediately to collections which took me by surprise. It took two phone calls with UCB and I settled for 35%. Chase as you know was a struggle the whole way. They never even offered anything until the last day before charge off and that was for 50%. I probably would have done better with a debt collector but really didn’t want the charge off or collections on my report.
I was current on all of my account through June of 2015 and never made a late payment in my life. I burnt through all of my savings to keep everything current and when that was gone panic set in. To anyone out there reading this don’t believe everything you hear from attorneys about bankruptcy or debt relief agencies as there main objective is to make you a client for a substantial fee. Had I listened to the attorney I was dealing with I would have filed a Chapter 13 and had 5 years of frustration. She immediately discounted debt negotiation and settlement as I’d be responsible for paying taxes on the discharged amount which of course is true. However, she didn’t make mention that if you’re still insolvent there wouldn’t be any taxes. The debt relief agencies didn’t say I’d most likely be sued or have my wages garnished. The point of my rambling is due some research before you make a decision. Had I not of found this site I probably would have ended up in Chapter 13 paying back thousands more than I did.
Michael, not only did you and this site hep me through the most stressful time in my life, you helped me make life better for myself and my children and for that I thank you.
Lastly, if debt settlement is your option I talked to many and my choice would be through Michael’s network if you go that route.
Hi Michael,
My Chase account was charged off on 12/31/2015. I received my first letter from Nationwide asking to dispute or not dispute the debt that includes the entire balance of $21k. I’m assuming that I should respond to verify the debt first. Any other suggestions in how to deal with Nationwide would be helpful. Thank you.
James
What is your ultimate goal for your Chase account? Knowing that will help me answer your question about what to send (or not send) to Nationwide Credit and Collection.
I would like to settle the account, however I do not have the 30% right now. Before it was charged off, Chase would not go below 60%. In addition to Chase, I also have 3k with Bank of America that will charge off on March 1, and Capitalone 9k charge off on March 20. I need more time and only have 5k right now saved up. I’m still working on CapitalOne and BAC to see if they will settle for less. I told them my hardship before, but I have not brought up anything about settlement since I’m waiting for 150+ days to bring it up which will be in February. From what I read, I should probably take care of Capitalone first. I hope Nationwide is easy to deal with.
At what rate are you able to save up money to settle your debts? In other words, how much money will you have added to the 5k you have now by March 20th?
You do not need to send a validation or dispute letter to Nationwide. It would not serve a purpose, and could complicate things later (though not in the way it can with some banks since Chase is not a risk to sue you currently). But you could end up kicking the account out from Nationwide early, which I would not if I were in your situation?
I agree with not sending a validation letter.
At this time, I’m only able to save $600 a month. I’ll only have $6200 by March 20.
Do I continue to ignore calls and only answer when I’m ready to settle? But if I ignore them for a long time, they might call my family. I’m just trying to find the right balance.
I would pick up one call and let them know you are simply unable to pay, and are not sure when or if you will be able to. You are working on some things that could improve your situation and will be back in touch when something shakes loose for you.
Debt collectors calling your family, friends, and neighbors is done for location purposes. They will have no reason to do that if they already know how to locate you. Be sure to confirm your current mailing address and phone number with them. I would then reach back out to them when you are ready to settle for between 25 and 40 percent.
If Nationwide credit and collection no longer has your account when you call you can call Chase directly and they will tell you who they placed your account with after that.
It all makes sense and will do that. Thank you!
Just updating you on this. BAC settled for 45% and I took it. Chase was charged off to Nationwide – they offered 30% from 21k, but don’t have the money because of Capitalone. Capitalone will charge off in a few weeks. They would not budge. They said they will transfer to their internal recovery department after chargeoff and they may be able to work with me then. I will wait for them. I do have another issue though with US Bank private student loans. I owe 26k and I cannot afford the monthly and have asked for a foreberance last year for 2 months. I was late a few times. They don’t qualify for IBR or any other options.
Give me a call to talk about your student loan options if you like. You can reach me at 800-939-8357, option 2 rings to me.
How much are you prepared to pay Capital One to settle? What kind of cash flow will you have after that, or can you pull together in the next30 to 60 days?
You may be able to get a decent term settlement out of Nationwide on your Chase account.
I will call you sometime about the student loan.
I have half for Capitalone now.
Nationwide offered $6400, but I don’t have it. I told them $3500. They said no. So I’m just waiting if they will send another letter. They only had the account since earlier this year in January.
Thanks!
You will not get Nationwide to go much lower, if at all, on the Chase account. But you could potentially get them to approve the amount paid over several months.
Capital One is the bank at most risk to sue, so they would be my priority to settle first over Chase too.
There are options for settling private student loans that are often worth talking about.
HI Michael
I have about $30,000 debts across 4 chase accounts, including $9,000 transfer checks I recently took out because I am unemployed now. I am unable to make monthly minum payments anymore. Will they likely to sue me because of these transfer checks? I am considering stop payment now and getting debt settlement with them following your 150-180 day timeline.
Thank you.
Call me so I can dig deeper into the account usage issue Simon. You may be just fine, or at least good to go on some accounts. I can be reached at 800-939-8357, option 2. If you get my voice mail (I am on the phone a lot), be sure to leave a message and I will return the call.
About 7 years ago we had to settle our credit card debt with Chase due to circumstances beyond our control. My question is this: Will Chase ever offer credit to us again if we were to apply now that our credit has improved greatly?
Whether not a bank will approve new credit and financing when you settled with them in the past is usually a case by case scenario. I have seen Chase do mortgages and refinancing with people who settle credit cards with them in the past.
What type of credit are you interested in? What is it that Chase is offering that is so competitive?
Hey Michael,
Thank you for your informative site. Quick question,
I have a 14k debt with one chase card and nothing else. All my other credit cards (2) are zero balance. They have offered me 40% settlement and also a 0% interest debt liquidation program. I’m confident I can get them to 30% closer to charge off time…but I’m reluctant….because I want to buy a home next year…..and I think my credit will be damaged even more.
My credit is damaged right now…because of the 4 months late reporting….but if i do the debt liquidation….they will ‘re-age’ it after 3 months of successful payments….
What do you think is a better route in my case? Debt Liquidation or Settlement?
You can often weather the credit damage that would result from settling your single collection account with Chase in a years time. And just because Chase will re-age your account, the 4 months of nonpayment do not go away.
If it were me, and depending on some other factors (savings for a down payment on the home a year from now, FHA loans, ability to pay rules), I would go with negotiating the best settlement result with Chase. If you need 30% out of Chase in order to make the deal work, you should know you may have to get that with a third party collection agency just after charge off (I am seeing that more and more).
Hello Michael,
I just wanted to share with some of your readers that I have had some success with Nationwide Credit on settling $10,400 and change Chase account for a whopping $1040.00
When this account first got charged off it went to ARS. They wouldn’t play ball so neither would I. I vaguely remember getting a $7000 settlement offer which I balked at. Told them I will continue to work with serious people who are will to actually help. Months went by then nothing. Finally heard from Nationwide; First letter was $3500 offer which I wanted to take badly but didn’t have the funds. I let it slip by without talking to them and they finally came back with a $1040. offer which they also offered to let me break the payments down to 4 months. December 23rd will be my last payment to them.
Regards,
Jim N
Forgot to mention it took me 2+ years to get to this point. So hang in there folks…
Michael, I am unemployed and owe Chase $5000 down from $8000 this past summer when I had work.. I missed payment twice in the last 5 months, the first they forgave after I agreed to pay. The second missed payment was this week. Both times I spoke with their settlement dept and was offered nothing, except to continue to make the minimum monthly payment. With no income, they can’t offer me a restructured monthly plan either. So, with family help, I really want to negotiate a fair settlement (20-30%) and move on.
(I owe Citi $6400, which I am seeking settlement as well. Bank of America I owe $3700, on zero percent interest till fall 2016, so I’m not concerned with that one yet.)
Bankruptcy is not an option for my credit card debt because I have a non qualified annuity the courts can go after. My only other debt is a car lease.
Michael, going forward, what can you recommend I do with Chase?
You are way to early to discuss settlement with Chase. I highly recommend you start reading my series about settling debts with your original creditors.
Once you read understand how debt negotiation in the first stage of collection works, be sure to read the last several reports where I cover key things to prepare for and ways debt settlement can impact you.
Everything you review will apply to early efforts to settle with virtually all of your credit cards.
Hi Mike,
I’ve spoke with you a few times if the name rings a bell. I spoke with Chase today and they weren’t willing to offer anything except full payment and I’m 100 days late. They refused to even talk to me about it until I gave them the name of a debt counseling agency I spoke to in the past. Once I gave them that info she asked a bunch of questions and I offered $1600 for a $6400 card. What do you think will happen next?
Thanks,
Dave
Not much is going to happen next if you are only 100 days late. You are way to early to be talking about settling with Chase. There are some banks where you can have a productive settlement dialogue this early, but Chase is not one of them at the time I am commenting. You should reach back to them in roughly 50 to 60 days and start that discussion again.
I am not seeing 25% settlements when negotiating with Chase. Unless their is a trend change, I do not think there is a realistic shot of them approving that. You have a better chance of getting that low a settlement on a Chase credit card when you are dealing with a contingency collection agency later on (after you are late more than 180 to 210 days).
The reaction they had when demanding to know the debt counseling agency you consulted with is odd. Did you try and qualify for debt consolidation through a non profit counseling agency in the recent past? Did you hire a debt settlement firm? Were they playing off of something you said?
They said it was their policy not to talk about settlement or hardships unless I’d spoken with a counseling agency first.
That’s different, but likely due to how early you are in the process. I too think most folks with a predictable and consistent income should start their debt relief due diligence by talking with a non profit credit counseling agency too (if accounts have not charged off yet).
Hi Michael,
I have a Chase credit card with $4500 balance. I have read a few of your articles and followed the advice to wait for 150+ days out in order for a settlement. I’m currently at 176 days late.
The debt has been assigned to Allied Interstate to collect for the last few months.
I have brought up settlement with them (@150 days late), and the lowest offer is at 70% which they say will last until Charge off date. My ideal settlement would be 30 – 40% of the debt and this is an amount that I can pay within 90 days– split into 3 payments. I asked for 30% and was turned down.
One thing that was mentioned on the call which is confusing is it seems that the Charge Off date is not 180 days but 210 days. They have acknowledge the days late is the same number as I have but charge off date is set for Nov 30 instead of Oct 30.
Do you have any advice for getting them to settle for lower settlement agreement at this point?
And should I be concerned that charge off date is more than the standard 180 days out according to Allied.Interstate?
I cover how some accounts can appear to charge off at 210 days instead of 180 in other parts of the site. I believe the 30 day anomaly has to do with the interpretation of OCC regulatory guidance called 7 zero billing cycles. I would not be concerned about this other than from a timing perspective.
As far as targeting the settlement amount you can afford, it is what it is with Allied Interstate. They may soften up prior to November 30th, but if they do not, Chase will likely place the account with a different debt collector (either just after charge off, or not too long after), and that can lead to your ability to negotiate the settlement amount you need.
There are instances where it can help to have a pro do the negotiations. If you want to learn more about that you can call me at 800-939-8357, option 2 rings to me.
Do you know how long Allied Interstate has had your Chase debt?
This makes sense about the Charge off date.
Also, if an agreement is not reached before charge off– will that impact my ability to have the debt shown as “Paid in Full/Paid as Agreed” on my credit report?
And the first notification from Allied that I received was end of June ’15.
There would be no paid in full or paid as agreed. You will typically see paid for less and a zero balance owed, and that is really all you need. There is no reason to get hung up on paid in full language.
With Chase having the account with Allied that long, I think your account is going to be replaced at charge off, which is fine, and likely when you will be able to hit your goals.
I have a chase credit card with a 10,000 balance — it has been sent to Nationwide Credit Inc. I have been trying to make payment arrangements- and they keep telling me that I have to pay the entire balance with 3500 down and 900 dollars a month or a one time settlement of 7200. What can I do to get a more reasonable payment plan-what is the best I can hope for. Thanks for your help.
I am not sure what you have already discussed with Nationwide, or how collection worthy they view you, but lump sum settlement offers are often much better than 70 percent on Chase accounts. There are reasons why a debt collector will hold out to get you to pay more, but I can talk to you more about that on the phone (I see your contact form in my email box).
Hi Michael,
I am recent graduate with my MFA in fine arts, last spring. During graduate school I went through a divorce and prior to that had been paying my credit card in full each month. I recently relocated to CA and have just started a job that is starting to help me pay my bills. I am only receiving my third check since arriving here and logged onto my accounts yesterday to find that I missed my mark by 3 days and Chase has just sold my debt to the United Corrections Bureau.
I checked my credit report and my score in extremely low, I have this debt, the balance was at $4985.00 on my credit card, as well as having $60,000.00 in student loan debt from undergrad and grad school. I just found your website last night and have been reading through the stories about settling after being charged off. I just got off the phone with Chase and before I called the United Collections Bureau I wondered if you have any advice for me about what to say when talking to them?
Having not been in this situation before I don’t have saved money right now to do a lump sum to give them right now. I don’t want them to call my work and begin harassing me there at my new job, as I have read about having happened to others before. Do I call today as soon as I just found out and tell them I cannot pay a sum but try and work out terms for repayment or should I try and ignore calls until I have a lump sum?
Please help, I just want to get back on my feet after so many changes the past two years.
How long will it take you to save up, say 30 percent of the balance United Collection Bureau? The answer would help me answer your primary question.
Hi Mike,
I am currently paying $1460/month on three credit cards in a debt management program. The $1460 pays monthly payments for:
Chase: $27,000
Chase: $8.950
BoA: $27,000
GE Capital: $6,000
I am so tight on my budget that I am considering just stopping the payments altogether in the DMP (where my rates are around 2-3%) so I can save up money and settle in 4-6 months for about 40% (~33k).
We make around $160k/year so I can save the money up pretty quickly. We already have cars and a house, so I’m not really worried about the adverse affect on our credit score since we won’t really need any credit ever if I can get this $82k in debt off my back.
What are our thoughts? What might be a good strategy?
Give me a call for consult Barry. There are benefits and drawbacks to settling your debts versus the credit counseling approach you are on right now. You can reach me at 800-939-8357, choose option 2. You can also fill out the short “Talk with Michael” form in the right side bar nearer the top of this page. Those all come directly to me.
Hello Mike,
I am in the process of negotiating with MCM. They represent Midland Funding. Their original offer at 40% discount. I would like them to go lower. I did talk to MCM and said that I am not even close to where they want me to be, but I am doing my best do have funds available and settle. In return they offered slightly lower % but wanted me to send symbolic amount(good faith). Should I send money order$25 like they ask or rather not because it will extend statues of limitation time? I told them that I have currently 20% available to settle.
I would not send any money unless I had an agreement in place if it were me. That could be a settlement for less, or a payment plan.
20% is not all that realistic a settlement target with MCM. I have seen those deals get done in the past when the hardship situation calls for it, but not much of that recently. You may need to save up more before you are able to settle this one.
Hi Mike
I have pretty much reached the end game with Chase, as my cc account charges off August 31.
CC Debt: $17k. Chase offer to settle: $6,800.
Problem is they will not send a settlement letter until AFTER they receive the $6,800. I had reservations about this and told them so. They said that was their policy, however as soon as they receive the 6,800 they would send the account settled letter out to me.
I told them that I need something in writing ahead of sending them the check. No dice!
Where do I go from here?
An alternative to getting the settlement letter prior to making the payment to Chase would be:
1. Record the call with the Chase rep where you cover all the details about the deal you negotiated. They do send the letter out, but that recording will protect you if something goes wrong. You can hold onto the recording after you get the letter. Tell the Chase collection agent that you are recording and why.
2. Set the payment date in their system out far enough for the letter to be received before the settlement payment draft (if making an auto draft). 10 days will often work.
If it were me, I would both record the negotiation call with Chase and set the payment date out.
Hi Michael,
I am 60 days past due with Chase. I have been talking to the same customer representative who is handling my account. She said after 90 days, their in-house General Collections department will be taking over. When I spoke to her, Chase can only offer 60% from 20k which I do not have that kind of money. I understand that timing is important and around 150 days or right before charge off is good to wait. I can only save about 30% by then. If they keep calling me before then, I am not sure what to say. Do I keep bringing up what settlement can afford? Or do I wait for an offer in the mail if I do not answer my phone? Or do I call them once a month to ask if I have not heard of any offers?
Thank you!
I encourage people to stay in touch with your bank about once a month. You do not have to pick up every one of the collection calls you get from Chase. In fact, you do not have to pick up their calls at all. I prefer to make the outgoing call. The purpose for the next 2 to 3 months is to let them know you are still unable to pay, but working on gathering resources. That is all there is to say until you cross over the 5 month late mark. It is then that you can bring up settlement for the amounts you can afford, and have a shot at getting Chase to agree to accept it.
You may hear a Chase collections agent bring up settling, and it is not unheard of to get a great offer approved prior to crossing over the 150 day mark. If that happens, and you can pay, it is nice to get these things done earlier than expected.
If you have any difficulty, or there is any curve ball thrown your way, give me a call at 800-939-8357, choose option 2.
Thank you, Michael.
Does the 150-180 days waiting period also work for Capitalone, Bank of America, and Discover? Or are they more aggressive? If I can settle within this window, are they less likely to sue especially if I keep in touch with them once a month? The balances in those cards are 9k and less. Thanks again.
Call me for a consult Joseph. The more accounts you have, the more strategy will become a factor.
If you have the ability to fund all settlements with Chase, and the other banks you list, prior to charge off, than yes, settling inside that 150 to 180 day window can often be ideal.
But if some are going to have to wait to be settled after 6 months of nonpayment, Chase may be one that you put off.
You can reach me at 800-939-8357, choose option 2.
February – March 2016 are 150-180 days for the other accounts. I will be able to have 50% for Capitalone, 30% for Bank of America, and 40% for Discover. If these accounts are less than a year old, you mentioned in another page, they may not settle in a hurry and that I would need to wait longer to be in second or third stage. It just makes me worried.
I also just found this page you have after I posted the earlier comment today: https://consumerrecoverynetwork.com/how-call-bank-negotiate-credit-card-yourself/
Very helpful. Thanks again!
Settling in the first stage of collection, and directly with your creditors, is often ideal. The strategy and priority you give each account can change from one file to the next.
I can offer more details with the consult, but you can post your situation and cash flow in more detail when you are 5 months late with Chase and the other accounts. My feedback will be more specific.
I am still in that waiting period. I have a quick question. Can the original credit contact my work and family before charge off? You mentioned that I should call them once a month so that I don’t ignore them and they know that I am in contact with them. I’m only a few days late with Discover and have had maybe 8 missed calls of the same number without a voicemail. I’m just wondering at what point or when would they call my work or family. Is it a good idea just to have an alternative number if the calls are becoming annoying. Thanks.
Hi Michael,
Thanks for your help.
My credit report shows that my (huge) debt was never sold to a collection agency after the original write off. The original write off took place in March 2014, and then continued to show on my report until February 2015. They haven’t reported anything since February 2015 – not charge off, collections, nothing.. just a blank space on all my reports. It shows that the account was “Account closed at credit grantor’s request,” and that the original 5 figure sum was written off. None of my three credit reports show that this debt was sold.
I came across this article:
https://www.bankrate.com/financing/credit-cards/chase-fined-216m-over-debt-collection/
“The bank also must cease collecting on 528,000 accounts that were sent to collections litigation between Jan. 1, 2009, and June 30, 2014.”
They never went after me in court, as far as I know. But I was charged off and had been called and called during the later part of that time.
Which discusses how Chase isn’t pursuing debts from a certain time period. Mine was originally charged off in that time period.
I find it hard to believe, but does it sound like I am in the clear from being sued? I don’t see any evidence to the contrary, but this is all new to me. It hasn’t been reported on my credit report since Feb and they never sent it to collections. Am I the luckiest guy alive?
You could very well be part of the Chase accounts that will likely not be sued for collection.
Do you have any potential credit and financing goals in the next 6 years?
Hi Michael!
I just started looking into credit card lump-sum settlement and was wondering how to go about it. Basically I have 2 credit cards that I need to settle, BofA 15k, and Discover 8k. Never had a late payment. I’m single, and make about 3500 a month before tax. My total monthly bills keep exceeding above my monthly income for the last 2 years or so hence the credit card bills. I have 3k in a BofA checking just fyi. Right now my house is on the market, after the sell I should have about 140k cash. But I will need to use about 100k down payment on another house in a few months. The sole purpose of buying the new house is for better school district for my kid. So that leaves me with about 40k. Would creditors settle knowing that I have 40k? And can I call them offering lump-sum settlement without having missed a payment ever? What is the correct process?
Thanks so much!!
You cannot call banks and get them to settle with you for less than the balances you owe while you are current.
Settling with banks like Chase or Discover will often be best timed for when you are between 150 and 18 days late. I would encourage you start reading my article series starting with the piece about settling with banks prior to charge off.
Because you have other financing goals (new home financing after the current home sells), and would not want late payments to interfere, settling, or falling behind with payments, is not a good idea (unless you have no choice).
I have a 14,500 debt with Chase. It is almost 6 months over due. I spoke with the representative in Feb. and told him I own no assets, have several injuries and no income and am unable to pay it.
I told him I was looking into bankruptcy, but that I would also like to be able to settle if I could find some money. He told me that we could settle, but not to look for anything like 20% etc. He said if I have the name of my attorney I should call him back and let him know. He was very kind – which I appreciated! (and I didn’t start to cry, which was also very nice!!)
I have done nothing else since then. I asked for the phone calls to stop and my mail has been forwarded since December and held, so I haven’t received it yet. (I told him I’d have trouble getting mail – no address!)
Now it is very close to 6 months past due. I have $2,000 which I can use for this. I saw a bankruptcy attorney costs almost that much. My bill is about currently about $14,500. I don’t know if it’s worth it to do bankruptcy for just this one credit card. And it’s harder to have to think of going to court, etc because of my injuries and mobility issues!
I wish in instances such as this, Chase would just settle with someone like me!
Chase will settle the credit card debt with you, but perhaps not for the money you have available.
Bankruptcy is an option right now, and in the future. What amount of money can you come up with if given more time? I see Chase debts settle with debt collectors too, and sometimes for better than what can be negotiated directly with Chase. Can you come up with another one to two thousand dollars given a little time?
Hi Michael, I found your site by trying to see if I could get hardship help with my chase card (4300.00 that is not late)I call the chase proactive solutions and talked with a rep and let her know that we are struggling and that there is a 95% chance my husbands job will be gone come October. And that I was trying to stay in good faith but we have other credit cards (that I’m trying to do the same with) the rep asked a bunch of questions to then tell me that we don’t have enough income to qualify for any of there programs. I know that we got our self into to this mess but I’m trying to fix it, what can I do, you would think I was a prime candidate since I’m trying to do the right thing, please help
Thank you
Rhonda
Before you set yourself up on any of the different payment plans your credit card banks may offer, you may want to consider grouping them all up to consolidate them into one payment.
How many accounts are there, and what do all of them combined add up to?
Michael, Appreciate your web site. My wife and I are both on Social Security and are in trouble with our two Chase credit cards. We owe 24,159 on one and 49,750 on the other. We quit paying on them about seven months ago. The 24K card has been turned over to Nationwide Credit and after talking to them they have offered a 7500 complete pay off (31%) or to extend the original with no more interest or penalties for 50.00 a month at this time. and we can re-negotiate later for a pay-off. I told them I may be able to do this as long as they would hold the pay-off to 31% of the balance owing. They said it would be a new negotiation at that time. I told them I may consider it if I could get the 49,000 collector (Client Services whom have not contacted me) to go along with the same program. There is a decent chance that I may come into a couple of 5-15,000 pay days this year. Your thoughts?
Are there other collection debts out there besides these two Chase accounts? If so, how much and with whom?
How soon would you be able to raise the first $7,500.00?
All other bills are paid on time. The 7500 probably I wouldn’t have for 6 months and I am only about 80% sure of that. It is not a certainty.
It would be good to know the other debts in order to establish a baseline for settling vs filing bankruptcy.
Nationwide will likely not have your Chase account in 6 months. And the same thing applies to client Services.
You can make really small monthly payments and see if that allows Nationwide to hold onto your account long enough to later settle with them. I do not see that succeeding with your larger balance Chase account.
Have you looked into bankruptcy at all?
I was with a debt settlement company for several years and settled 6 out of 7 credit cards. The 1 that is left is with chase bank. I had 2 Chase cards and 1 got settled and 1 didn’t. I believe Chase still owns that account and it hasn’t been paid since 2009. I have never received anything from them. No phone calls or letters. It has been 6 years now. I would like to settle with them, but right now I don’t have a lump sum. Do credit card companies ever forgive the full amount after 6 years? I live in NY. Do you think they w0uld accept half in monthly affordable payments? I think it is up to $14,000 by now. What should I do?
I am not a huge fan of monthly payments, especially if the SOL to sue is now passed. What is your motivation for trying to resolve this account?
Is Chase reporting a balance still owed to them on your credit reports, or does it say zero?
Yes, lenders can and do completely forgive defaulted debts, and you can be taxed on that. Chase may do that with your file, and should if all collection efforts have been abandoned for 3 years, though there is pending guidance changes from the IRS on the issue of abandoned debt.
Hi! I’m sorry it took me so long to get back to you. I got 2 of the 3 credit reports and the amount is $10,485.00 that is still owed to Chase and it does say it was charged off. When I was with the debt settlement company they contacted eachother once and chase said they would take $4,200.00, but we were paying off other bills at the time and that was the end of it. I never heard from them again, which I think is wierd. It says my last payment to them was 2/2009. Now you said the SOL to sue has passed, so I don’t have to worry about them garnishing our wages, right? I did not receive a 1099 this year. I am hoping they will forget and forgive me, so I would only pay the tax on that amount. It says it will stay on my credit report until 3/2016. Will it really go off if it still has a $10.485.00 balance? What do think will happen to this account. I just keep thinking about it.
Now that the account is passed the SOL to file a legitimate suit, you are not at risk for garnishment, lien, or bank account levy. If for some reason someone were to file a suit, your defense is simply that the debt is time barred.
This Chase account will still fall off your credit reports regardless of whether the 10k plus balance is unpaid or not.
Nothing will really happen with this last remaining account. You may hear from one or more a third party debt collectors over the course of time, as the debt did not really just disappear that we know of. If that happens, post an update and lets go from there.
Ok Thanks!
I owe Wells Fargo over $20,000.00 on a debit platinum checking account card. It mostly built up over time due to the overdraft protection option. I am going to sell some land and would like to settle with Wells. It would be nice if they would take $10,000 to settle the debt. I am only one month beind in my payments. I have got to the point where I cannot make the monthly payment of $600 +. I do not want any type of hardship payment plan. I only want a one time settlement. What is my best course of action to reach a settlement? I am worried that this is tied into my checking account. I have two aut0matic draws for mortgages. The two mortgages total $28,000. I have other draws for loans. I also have three automatic deposits for my retirement check, disability check, and a Navy Reserve retirement check. If they settle, are they going to close my checking account? This could be a disaster. Also, might they just close the overdraft protection? I need to keep this going. I also owe about $5000 total on other credit cards.
It may be a brief hassle to set up a new checking account at another bank, and to reset up your automatic deposits and withdrawals, but it will set your mind at more ease, and may improve your ability to settle the account too. Read more about bank account separation when settling debts, and other critical issues when negotiating bills.
Hello,
Please advise on my crazy debt problems that have come about due to business problems.
Chase CC (1) 105,000
Chase CC (2) 16,000
American Express (1) 22,000
American Express (2) 5,000
Kabbage 86,000
I am currently only behind on the 22,000 from Amex but will be behind on all within the next week. I have the ability to borrow 100k from a relative. How would you recommend I proceed to get a settlement with the institutions for less than 100k?
I see that you submitted a request for a consultation Joe. I sent that on to a CRN specialist who will reach out to you and get into the details and approach you can take.
Is this a business that you plan to keep open?
Yes, I have alot of business assets but business has took a terrible turn. I plan to exit the business but that could take some time to sale the assets.
Okay. That could add some complexity to the process of negotiating and settling some of your accounts. Look for a specialist to connect with you, if that has not happened already.
Hi Michael
With your help I was able to reach settlements with four different financial institutions in 2014. I expect to be hit with a very large 1099C. I am really counting on the insolvency provision to help me out of this mess but I had a few questions
Can my full mortgage be included in the insolvency calculation ?
Is Publication 4681 still the current one for tax year 2014 (file 2015) everything I found said 2013 and the IRS website is confusing ?
Is form 982 the correct form for tax year 2014 and is there a separate worksheet ?
Any websites or references you can provide would also be greatly appreciated. I do use a CPA for my return but I need to be an educated tax payer (especially given the situation)
Thanks
Nice work resolving your credit card debts John! Would you mind sharing what you owed to who, and the result you negotiated? It helps readers better identify realistic targets, and solutions for their own bills.
Not being a tax professional, I would defer all of those questions to the one you are working with, or perhaps an expert tax blogger like Jim Buttonow.
Generally speaking, your mortgage amount does not stand alone. You know what you owe on your mortgage, now you need comps for what your home is worth, so you can calculate your homes value. If you have equity, that amount of equity, and other net worth calculations (401k for example) needs to be offset by what you owe (credit cards and other debts).
If you owe more on your mortgage than the home can be sold for, which is still the case for many, the amount you are upside down is included in with the credit card balances as negative worth.
Form 982 is still the go to form to my knowledge, and the worksheet is something I link to in this post covering the topic of taxes on forgiven debt and insolvency.
Sure … let me type up my experience and submit . It was really interesting on who was willing to do what and how they went about it
I am struggling with whether to do bankruptcy or settlement. My income will not change much and I am struggling putting off home repairs etc to pay my minimum payments as is. I was able to get on a hardship program with the other credit cards but synchrony bank is horrendous to deal with. At this point I have decided to record my conversations with them. They told me I was 90 days late, then that I had not been but now I was. They told me no program was available to me. I called them repeatedly finally, after they had already closed my card and after I talked to the lady for a long and kept telling her I knew there had to be something she said o yeah you could make three payments for the next three months of X dollars and will be caught up. She could not tell me the interest rate, no one can. I called to make sure they got the payment about a week later and asked why they did not have a hardship program and the lady told me they did. It was at a lower interest than the rate of my original card, locked in for a year but I could not get it because I was already in the program. AND she said it was for a limited time only. There is more. It makes me want to do the bankruptcy and get it over with. I dont care if I can get a credit card anymore I am worried about getting jobs. I also like to sell on ebay and I think they don’t allow it if you have a bankruptcy. any help appreciate. Synchrony is a scary bank
Depending on the situation (how many creditors, which cards, etc.), it can be better to get set up on lower payments with your credit cards through a credit counseling agency. Your one off approach can hit the snags you refer to, and other ones too.
It may no longer be an option because your other accounts are on temporary or long term hardship repayment plans, but credit counseling organizations can help with Synchrony credit cards (formerly GEMB). Look up an agency, or call 888-326-8026 to speak to one now about whether they can help get your payments down to where they are more affordable.
As far as making the payments compared to bankruptcy, what are your total debts? What state do you live in?
Michael,
My situation with Chase is about the same as the others here. Tried to get them to lower my interest rate to no avail. Stopped paying and it instantly was lowered. It was kinda to late and it was to the point I couldn’t pay at all, so I didn’t. Of course they called….I didn’t answer. Charged off and the very next day GC Services started calling. Got the dunning letter and did not answer. They called daily from one number and after the 30 days……started calling from a different number. Today I got a settlement letter from GC Services. It’s strange though because the letter was in a regular everyday envelope and was handwritten?? Not in a business envelope. The return address has a name with manager after it?? Strange!! Inside the letter shows GCS logo on top.
My Balance is $4,414.28
Settlement offer is $3,134.14 by Nov. 28th and that they will report as ‘settled’
I don’t have that much due to job loss. In your opinion should I just reply and offer a lower amount?
Can you swing a 30%-ish settlement on the Chase debt with GC Services?
I would be comfortable with that. I have been saving to take care of it but wasn’t sure how to reply to the GCS offer. Also not being comfortable with the fact the envelope as hand written……just thought that was strange.
One more thing….the letter said they would report to Chase as ‘Settled’. Is that the wording i’m looking for?? Thanks so much for the help!
GC Services can agree to settle as an agent for Chase. When they mark your account as settled, Chase reflects that on your credit reports within a couple weeks to months. You want that wording in the letter, or some other variation. Here is an article dedicated to the topic: https://consumerrecoverynetwork.com/credit-card-debt-to-include-in-settlement-plan/
You can call GC Services in response to their settlement letter and make a counter offer. If it were me, I would probably start at something like 20%, and telling them there is no way you can come up with the money they offered.
GC Services is not likely going to take 20% of the balance you owe to Chase, and they may not even come down close to 30% right then (or ever). But you are not trying to get everything negotiated in the first call. Hang up politely, letting them know you will see what you can do and get back to them. I would call a few days later and offer a rounded figure that is close to 30% and stick to it from there, unless GC counters with something close that you are willing to accept.
Get the deal in writing from them before you pay.
Hand written envelopes from a collection agency like GC Services, or any collector for that matter, is strange. I think it is smart though, as I believe more people would open those letters than the printed ones.
You can call Chase directly to verify with them that they sent your credit card to GC Services for collection.
I just wanted to let you know that I finally settled my Chase credit card for 26% of the total amount owed. Thank you so much for this website and all your help. I was over 180 days past due and basically ignored the calls but checked in every so often to see what they were willing to do. If I couldn’t pay it I’d basically tell them that and check back in a month or so later. I think doing that may have helped me keep them from selling my debt because I was willing to pay something and was offering 15-20% of my balance which is more than a debt collector would have paid. You and your website helped ease the stress of this process by educating us on what to expect. Thank you!
Brooke, how much did you owe Chase?
Thanks for the update and great feedback Brooke. And congratulations on that great settlement!
Hi Michael,
I gave 3 cards with Chase 2 for $6000 and 1 for $4500. I am currently up to date on payments but am not making any head way. My student loans are coming due in a few months and I know I will not be able to afford both. A few questions. My goal is to pay around 40% and be done with them. How long is the statute of limitations to sue in Texas? Shoud I just stop paying and wait for a deal with collections? Should I cancel them?
A million thanks!!!
Are all the Chase cards you want to settle more than a year or two new (when you opened the accounts)?
Assuming you need 40% to settle, how long will it take for you to pull together the money?
Texas has a 4 year SOL to legitimately sue for these debts.
You cannot settle while current. Stopping paying now, or when your student loans become the higher priority, and force the issue, is up to you. But depending on when you have funds available to start negotiating settlements (the earlier the better), you will either be dealing with Chase directly, or collection agencies. Chase is doing more and more pre charge off placement with collection agencies than before. This means debt collectors could have the accounts before you have missed 6 months of payments, which is a bit of a departure from Chase recovery and collection trends of the last decade or so.
With debt settlement, whether you call in to cancel accounts, or Chase cancels your credit cards after your first missed billing cycles, the end result is the same. If you were going for credit counseling with Chase cards, or their internal balance liquidation hardship plans that go 6o months, it is possible that “closed by customer” as opposed to “closed by credit grantor” on your credit reports could be meaningful to some.
Hi Michael
I have a delinquent credit card with a credit union which they refused to settle for less than 80%. At that time I was in the process of negotiating three other settlements so I could not agree. The card was subsequently sent to collections and they have had the debt for about 8 weeks. The collections company actually hasn’t been too pushy “yet” but the last time we spoke they said I was running out of time and that I would need to get on a payment plan of 300 or 400 per month. They also started to insinuate a lawsuit could be coming if I didn’t start to address the debt. The balance on the card was at 15,600 before it transferred but is more likely around 16K now. I am not sure what to do. I don’t think they will settle. I can try again but they appear stuck on the 70% or 80% mark. I can start to make monthly payments or wait to see if they sue me.
If they do file a lawsuit would the collections company still be involved or would it go to yet another third party? If I make payments should I settle back on the original amount of 15,600 and demand they waive/stop any additional interest and penalties?
I have successfully negotiated three other cards (Chase, Bank of America and Discover) so only have limited funds left. I have a 401K that I could dip into to address the debt but that brings its own set of issues
Can you let me know what you think? I am worried about getting sued and not knowing what could happen. If I get sued will the judge likely just make me pay the amount owed and put me on a plan similar to what the collections company is suggesting
Thanks for your help
What is the name of the collection agency contacting you now?
Smaller local and regional banks are not nearly as forgiving when it comes to settling. But you can sometimes get interest and penalties stopped/lowered, and get a monthly payment plan close to what you could have gotten through a credit counseling agency.
Unless you are borrowing from your 401k, I would not touch it to settle this debt. I probably wouldn’t even if I was loaning myself the money. But I would look at the performance aggregate, and maybe I could make it make sense.
When it comes to what the payment or settlement would look like post judgment, they can levy, lien and garnish in most states, and it will be the collection attorneys job to see that happen unless you do work something out.
Hi Michael
The name of the collection agency is https://www.grantweber.com/ . So if I can’t reach a settlement then it sounds like I should try to come up with some type of payment plan. What provisions should be spelled out in the payment plan ? I assume we need a written agreement before even going down this path.
• The total amount of the debt
• The monthly payment amount
• The term
• Something defining how this debt will be reported the credit agencies. Can I ask that it gets updated to report the payment plan during the process or will it simply show delinquent until the debt is paid as agreed
Anything else ?
Thanks
That about covers it, and no, you do not typically see charge off accounts with collectors get updated monthly on your credit reports. It is one of the reasons settlement will often make more sense once in collections. But that requires resources, and yours are depleted.
You do want the correct account identified.
Hello Michael,
I’ve been trying to find info about falling behind on Chase business card payments and haven’t been successful yet. I have one Chase biz card with about $5,000 balance and a Chase United explore card with about $9,000. Plus 2 business and 1 personal checking accounts with Chase. A few months ago, I went into a limbo with my finances and couldn’t pay my Citibank cards. They’re now in collection as of Sep 25th. This is only the beginning. I have other cards with WF, Cap1, Firstbank and they will have the same end as with the Citibank cards. My main concern is my Chase cards, esp the business card. Does chase treat business credit cards any different than the personal cards? Should I do my utmost and try to pay these cards on time as I have checking accounts? If I do give up and not be able to pay either card, what happens to my checking accounts? Will Chase close them as well? In the even of default on a business card, does it get reported to the firms like D&B? Or does Chase offer any hardship programs on business cards? And if I do give up on the personal Chase card, yet try my best on keeping up with the business, does it still affect the business card and the business checking accounts? I hope I didn’t go overboard with so many questions. Any advice at this hard times will be greatly appreciated.
Thank you
Do you know for certain that you are not a personal guarantor on the Chase business credit cards?
You can often manage your personal and business accounts separate of each other. But I would hate for you to let all of your Chase personal credit cards and accounts go south, trying to hold on to your Chase business credit cards (I assume for operational purposes), wasting resources trying to hang on, only to let all that fold later on too.
Can you be specific with what happened to lower your income, or demand more of your resources, and also a realistic perspective of your earnings with the business moving forward (you are not bringing enough in to pay bills now, how is that going to change i.e. seasonal business and these are the best months for you coming up)?
Thank you Michael for the reply.
First of all I am not 100% sure if I’m a personal guarantor but most likely I am. At this point,
my personal finances and credit profile had a major downfall, my credit score went down to
500 from 740 (which was in early 2013),
so I thought at least I could try and save the company credit status and name, in case I can manage to
make a come-back financially in a few years somehow.
I am now wondering if I default on the Chase business card, or even go to a settlement with Chase,
will this impact my business name, as far as D&B, inter-banks CHECK system and similar institutions go?
Can Chase put a lien on any money in my personal or business checking accounts while I’m within the 180
days limit? What is the worst case scenario with a Chase business card going default and end up in
settlement, if not at the hands of a CA?
This all started when I lost a major customer in the beginning of 2014 who’d be paying certain amount
every month which would cover most of my operational costs. Other than that, handful of customers
that I had reduced their spendings and I couldn’t manage to find new ones and come up with
other sources of income.
Thank you again…
Yes, defaulting on Chase business credit cards, and other loans and accounts in the business name, can sully the name with Dunn and Bradstreet, and prevent future credit opportunities for the business.
The question about liens and/or cross collateral from one Chase account or loan product to another, would have to be outlined in the loan and account terms. This is something you do not see as much with the major banks like Chase, BofA, etc., unless we are talking about larger commercial accounts. You see that type of thing happen with credit unions, and smaller dollars.
Worst case scenario is the business is sued for collection, or you are sued as a guarantor. But Chase is not suing much on consumer debts these days, so it is more likely that court collections would come from a debt buyer who may end up purchasing some of your Chase accounts.
There are options to consider when dealing with collections in the court, or with collection agencies and debt buyers in general. And you can settle with Chase, a debt collection company working for Chase, or anyone collecting on these debts during their life cycle, including if sued.
I would encourage you to run through all of your personal and business finances now. Be realistic about your options and ability to turn this around. If you have a shot at righting the ship in a 48 month time frame, that is great. You just have to navigate the mine field well. If turning this all around, or the majority of it, cannot realistically be achieved in a few years time (financial hole is just to deep), look at your options with chapter 7 bankruptcy, as the fresh start you can get from that process would allow you to focus on rebuilding the current business, or starting a new one, much sooner and for less cost.
Hi Michael, I have a chase card balance of $22,000. The money was used in 2013 to fix an emergency water issue at a building I own. I have made payments consistently for over a year now @ zero %. That has run out and the interest is now at 19+%. My business is having a very disappointing year and it’s all I can do to pay the mortgage. I cannot pay chase any longer. My credit score is very high (excellent), I own my home and have no other debts. I do not ever intend on buying a mortgage again and I pay cash for everything else. To keep my business running at the rate it’s going today, I need every dollar. What can I expect in the upcoming year from chase? Thank you.
When will/were payments to Chase stopped?
Is this a scenario where if your interest rates were again close to zero, you would still be able to pay Chase?
What is your goal for this account, and why the interest in a years time (why be so specific to one year)?
I can help you get a firm understanding of what is going to happen between now and 12 months away, but answers to those questions will help me offer more than just generalizations.
Payments just stopped with last month. Even if I had a low interest rate, business is so grim that I cannot pay anything. My goal is to let it go —
Chase will make some efforts to get you to pay through recovery department phone calls, and with collection notices in the mail. You will continue to receive normal billing statements for several months.
Chase will charge off the account in compliance with generally accepted accounting principles and office of the comptroller of the currency (OCC) guidance. That means after no later than 180 days of nonpayment your account will get dropped into the Chase collection pipeline. Chase can subject your account to outside collections efforts sooner than 180 days, but few major credit card issuers currently do that.
Chase will decide, generally at charge off, whether to assign, sue, or sell. All of these options will involve outside collectors.
Chase may send your account out to a contingency debt collector who will call and write to you in an effort to get you to pay. The collection agency in this scenario is paid only when they get you to pay. If they are unable to do that (get you to pay), after a set period of time, Chase gets the account back and will again decide to assign, sue, sell.
Chase stopped suing their account holders for unpaid credit card debts a couple years ago. They had some issues to clean up, and I believe those are mostly passed them as of right now. But I do not expect them to restart the collection litigation any time soon, as they shuttered their entire department that was built for the purpose.
When Chase sells accounts off to debt buyers, those debt buyers may make collection calls and send you collection notices, and perhaps even offers to settle. These debt buyers will be where your risk of being sued exist (based on current trends).
All along the way, and at every stage of collection, with whomever is doing the collecting, you have options to settle for less than the balance owed.
Once your states SOL to legitimately sue has expired, the collection teeth are removed. You then wait out credit reporting time limits.
Hello Michael first of all thank you so much for this space.
I have a credit card debt with Chase and I want to low my interest … my debt is now $7300 I want to pay it as soon as possible but i called over there to try to settle a payment, I offered $5000 to set off the balance but they said to me NO. They said id I want to pay off and cancel the credit card, I need to pay the whole amount $7300. Any ideas? Thank you
hayat – Are your payments with Chase up to date? Chase is typically only going to consider settling with their account holders when payments are missed. If you have already missed payments, by how many months?
Michael we are up to date ! Then … nothing that we can do ?
There is nothing you can do about settling with Chase for less than what you owe when you are up to date with payments. Chase settlement policies do not kick in until you miss your payment, and often at least 3 payments. After you miss your first payment, Chase will first try to reestablish monthly payments with you, and they will often make good lower payment offers in order to work with your budget.
What is it that you are trying to accomplish with your pay off strategy? What is prompting your offer to Chase?
Hello,
I have a credit card with Chase with a balance now of 3538.00. I have tried to settle with them for $800. They would not agree. They offered $1400 as their lowest offer. I just can not do more than $800. So now I just got a letter from GC Services. It just says what I owe and says to make a payment. Will this company settle with me for what I can afford? Should I try to call them and make an offer?
Any info or advice will be greatly appreciated.
Melissa
1400.00 may be as good as it gets when settling credit card debts with Chase. That is roughly 40% of your balance, and a fairly consistent target with them. Having said that, there are debt collection companies that Chase sends accounts out to who have settled for as low as 25-ish percent, which is more in line with what you say you can get your hands on. Those settlements were in the last few months, but were not with GC Services, and I am skeptical you will get that with them, but you should try.
Please post an update with how you progress.
Thanks for the fast response. It is very much appreciated.
When should I try to settle with GC? I know Chase was still trying to collect as of a week or 10 days ago. Should I wait any particular amount of time? Also, should I be overly concerned of a lawsuit? I’m not really in a position to be collected from. What I mean is I don’t own anything and I’m not employed. Still, I would want to avoid being sued if at all possible.
If it makes any difference I had 3 other credit cards that I have settled with in the past 3 – 4 months. BofA settled 5000 for $1400, Citi settled $1900 for $800, and Discover settled $1600 for $800.
Thanks again,
Melissa
Getting sued for a debt does not always have rhyme or reason. You and I would think some one not very target-able would get passed over, but that is unfortunately not the case. Yes, you should be concerned about being sued. No, not overly concerned yet, as GC Services has the account. Hold onto overly concerned for when you get a collection notice from an attorney licensed in your state.
When negotiating debt with contingency collectors, there are timing elements you can look to capitalize on. Watch this video, and read through the article and the comments, for more on strategy and timing tips: https://consumerrecoverynetwork.com/my-credit-card-account-just-charged-off-and-a-debt-collector-keeps-calling-me/.
It does make a difference that you settled with those other creditors, and prevented them from going out to debt collectors. You can take that confidence into resolving your Chase account with GC Services. Are there any other unpaid bills on your credit reports? You can sometimes leverage the fact that any money you have available can just as easily go to a different bill, and because debt collectors can see your credit reports, other unpaid bills can even be targeted by name when on the telephone.
Great Video !! Thanks.
Hello Michael!
I am glad that I came across your website. I desperately need help and I have been doing research about my credit problem and I am hoping you could help me out. This is my situation: I have an outstanding balance of $41,000 from Chase at the moment. I have always paid my monthly on time and never missed a payment. However, about over a year ago, I lost my job and I have had financial difficulties till now. I got into the Chase hardship program that same year. I am basically paying $694 every month for 60months. I still don’t have a stable job till now and I really don’t know what to do anymore. I have a friend who is also an American who lives in Korea now. She offered me to go there and start a new life. I am considering of doing this since I am still single anyway. I don’t think I’d still be able to pay $694 every month since I am sure I won’t be earning as much. What would happen if I cant afford to pay anymore? I am already on the hardship program and I am still paying $694. If ever I decide to go and live in Korea, I dont plan on going back here in the US unless only to visit my family. I don’t have any assets here as well. What would you suggest I do? What are my options? I am really confused and do not know what to do. Thank you so much for any help or advice you have for me, Michael!
Have you looked in to chapter 7 bankruptcy? Are there other debts than the Chase credit card in hardship?
Chapter 7 would cost you less than 2k more than likely (maybe less than 1500). You could be done with the debt for 2 to 3 months of the payments you make to Chase right now.
If you stop paying, the normal collection cycles will start. And if you were out of country for a long stretch, or permanently, there is not much that will occur. I doubt you would even get collection calls.
yes, I already called for a free consultation regarding chapter 7 and they said that it would take at least 6 months for the whole process and that I would have to be here in the states. The thing is I have to leave by December of this year if ever I decide to go. There is a time limit to the contract I would have for work in Korea. Although I am thinking that maybe I could wait till another contract next year so I could file for chapter 7? but there will be no guarantee that I could be given another contract if I wait for another year.
You mentioned that there is not much that will occur if I were out of country for a long stretch or permanently. My main concern about it if ever is that do you think Chase or the debt collection agencies will have the right or power to garnish my wages outside the US? Will they take away any assets I could possibly have in the country I would be living in? I’m aware that if someone goes on default for a period of time, they could be sued. and since I might not be here anymore when that happens and I wont be able to go to court for it, I believe a judgement against me can be given. and with that, I am just afraid that they could follow me wherever I go and would have the power to take my money or any assets I would have. Is that possible? I have asked this to many people and no one has given me a straight answer. I am afraid and uncertain of what could happen.
Thank you so much Michael! I really appreciate your response, so much.
I have worked with many people to resolve debts originated in the United States, but where they were abroad long term (employment, missions, thought would be permanent, etc). Some of those files had judgments where garnishment, bank levy, and property liens are real risks. But those typically apply in the state the judgment is issued. You do not have a judgment, and would not be worried about property anywhere in one of the states.
There has been a big problem with people being sued for debts without proper legal notice being given. This type of scenario is a concern, but not as high of one as it has been in the past. Not that my saying this means much. If it were to happen to you, you could give a rip about whether it happens to less people today than in 2005.
You could change your address to a mail drop that will scan all of your mail and email it to you. This would prevent some of this concern. You could go on notice with Chase that you are moving to Korea, and ask that your address change to your friends place in Korea, or another address. This would make it hard for Chase, or a later debt buyer that may end up with your Chase account, to say they legitimately served you (they couldn’t have).
I hope that helps. At the end of the day, while your concerns are valid ones, the debt is affordable to maintain, or it isn’t. You have the lowest payment possible with Chase now, and that is not doing it. Chase does not have a strong 60/60 plan like Discover Card. You are limited to the solutions available.
You can always look at settling this debt down the road, and likely less than half of what is owed to Chase today.
So is it safe to assume then that neither Chase nor a collection agency will have the power to take any of my possible assets or money in the new country I would live in?
And yes, I do feel bad that I am still having difficulty even with the lowest possible payment I have with Chase and the thought of not being able to pay anymore. But I guess I have to do what I have to do to survive. And like what you mentioned, I could always settle the debt down the road anyway and most likely half of what is owed to Chase.
I suppose I could have finished my prior thought on this better. In all files working with people overseas, and when judgments were involved, never has there been a file where risks to money or property in other countries were part of the motivation for resolving the debts. It just does not happen with debts like we are discussing.
Is it possible theoretically? I suppose, but possible in the realm of reality today, not so much. And there would be many early warning signs that would allow you to plan and prevent.
I got your reply on my email but it doesn’t seem to show here when I clicked on the link. Anyway, I just wanted to take the time to thank you for responding to all my questions. I will take everything you said into considerations, at least now I have an idea of what I am or will be dealing with if ever. Again, THANK YOU SO MUCH, Michael! 🙂
My Credit is in shambles right now with a score of 534 . I am in the process of settling 3 credit cards (only one of which is completed). Its probably still too early to have the creditors report back to the agencies that the debt was “settled for less than the amount owed” . I do have accounts on time but those are a mortgage payment and student loans ..basically those debts that you would expect to take priority. I find it curious that they have not contacted me yet. Do you think this is the research phase where they try to dig into my personal financial situation ?
Who were the other two accounts with? Do you know who is collecting on them now? Who did you settle the one account with, and how long ago?
Hi Michael
I was able to successfully settle a few different credit cards but unfortunately one that I had through a credit union was charged off. They sold the debt to Grant and Webber. Everything I have found regarding this collection agency seems to be negative. I understand that they have to follow certain guidelines but it doesn’t give me the warmest feeling. The strange part was that the collection agency has yet to contact me and it has been 30 days. I even contacted the original creditor and they have twice directed me to the collection agency. I am concerned that this collection agency is gearing up to file a law suit. Wouldn’t they at least try to negotiate a settlement first or work out a payment plan ? Do you think they would take a lump sum payment for 50% +/- of the debt… Anything is better than going to court. I am not experienced in dealing with collections agencies and wonder what they would be willing to accept on a 16K debt
Thanks
My experience is that the majority of debts that are sold off, or placed immediately with attorneys, will still result in at least one collection notice being mailed out, and at least one phone call attempt. I have seen first contact be service of a lawsuit.
If your collection profile meets the criteria, you can settle for 50% or less of the balance. What kind of shape is your credit report in? Do you have other accounts in collection on their? How many? Do you have accounts showing as being paid on time? If so, what types of accounts?
I spoke with I think it was Allied One who is working for Chase. They offered me the 60 month payment plan which only changes the payment by $10/mo what I’m supposed to pay now. I basically said if I could afford to pay that I would be. They didn’t seem easy at all to work with. After some time on the phone they offered to submit to Citibank an offer for about 45% which is more than I have at the moment. What kinds of settlements do you typically see with Chase. I was thinking of offering 20% to start but they didn’t seem interested. I think I’m close to 180 days past due which I’m concerned they would sell my account. If that is the case wouldn’t 20% be a good deal for them?
Try not to think of this process so much from what we think would make sense for banks like Chase to agree to. Unless, of course, you want to constantly be frustrated.
Selling freshly charge off debt to a debt buyer for, say, 11 cents on the dollar, when you are able to pull together 22 cents on the dollar as a settlement – does make sense mathematically. But not for Chase as a policy, and not at a level they want to scale, or at least not since peak credit card defaults during the recent recession.
I have seen better settlements with the first agency to get Chase debt right after charge off, than when negotiating with Chase recovery directly just before 180 days late. That is a change this year. But does not apply to all accounts, and Chase appears to be actively selling debts now, where they had put all that on hold during some recent regulatory scrutiny of their practices.
30 to 35 percent has a shot pre charge off, but if you don’t have it, is just is what it is.
What is the 45% Citi settlement reference about? Is that Allied, Alliance One?
I also have a Chase rewards that I got 3 months ago with 0 percent interest. I charged 289.00 & quickly paid it off. My husband said cancel the card he only wants one. I called and cancelled & it and 20 minutes later I called back to reinstate it because of the debt to availability for you credit. They said no. It was because I was 180 days late on a card. I said no way we don’t have any more cards except for one. They said we claimed bankruptcy 14 years ago and it was their card from back then. I asked why they issued me this most recent one and they couldn’t tell me. They said they would have to pull a detailed credit report and see if I could get it reinstated. I told them never mind and told them what they could do with the card. My husband wants to pull everything from them. We only have a small savings and checking and a car loan, but they don’t seem to care. Is it legal to go back that far with our bankruptcy. It killed us to claim bankruptcy, because we always paid our bills.
We owe 6,700 to a chase credit card. The interest is 26%. We have had this card for approximately 10 years and the interest has always stayed the same. We have paid on time every month except for a couple of months but then it was only by one or two days. We have called and begged for a lower interest rate and they said they review their accounts every 6 months and then they would let us know. We do owe this debt, but I could no longer work because of back surgery. We called and asked if we could pay them a lump sum to settle and they said our file was not eligible at this time. We offered them $5000, from a life ins. policy from my father and they said they would only accept 6356.74. My husband says screw them. We are older and we are so sick of being judged by our credit score, we just don’t care anymore. What do you suggest we do? Thanks for your help
You can settle with Chase for a much better savings by making the effort to resolve the account at a much more predictable time frame. I would recommend you read through the first stage debt negotiation section of the debt relief guide. You will find that you are about 5 months too early to settle if you are still current with payments to Chase. Start reading here: https://consumerrecoverynetwork.com/best-debt-settlement-timing/ – click to the next section at the bottom of each article, and post questions or concerns in the comments of each page as they come up.
I have 4 credit card companies that I’m trying to apply your advise to when attempting settlement for less than the balance. Chase has kept me on the phone more than an hour twice talking to me about “options” and then encouraged me to call a non-profit CCC. I did that. Stayed on the phone with him for an hour and he said it looked like I didn’t have the ability to pay my bills. So, I called Chase back and they wanted to walk me though the same hour long phone call template before they would discuss any options. How do I get to someone with the authority to simply give consideration to a settlement amount that I can pay?
I owe $7800 and a family member is willing to pay it for me but only have about 5,000 to give but would do that. But I cannot get to anyone that will let me talk about it and not go though the hand holding process. I appreciate their help concern but I know what I can do. I’m very frustrated.
Help? What am I doing wrong. I’m 2 1/2 months behind in payments.
You are too early to get a settlement, or anything like a decent one. You want your account to be in the lap of a Chase recovery department employee, and you often want to be between 150 and 180 days of delinquency before settling up your settlements. There are exceptions to this time line, but are either account specific, or broadly economic related (such as the recent recession and record high credit card defaults).
Said another way… you have to be patient.
Read through the section of our online guide dealing with pre-charge off settlements and you will be better prepared for the what to’s and when to’s. Jump ahead to this page: https://consumerrecoverynetwork.com/settling-credit-card-debt-is-a-race/
Hi Michael,
I have 9 cards I want to try and settle with. 2 are with Chase, 2 with Citi, 2 with Capital One. The rest are Discover, Walmart, and Elan. All these total about 20,000. My cards are currently all up to date, I have not stopped payments yet. I plan to take a loan out of a Federal Credit Union for $10,000 (if it is granted) to pay off my cards in lump sum, provided I can get them all to settle low enough. I would like to keep one card for emergencies however, and if there were one card to keep open and pay on which would you recommend?
It is best to keep an account open that you want to continue to use later, and that also has a zero balance owed on it currently, or that has a low enough balance for you to pay down to zero balance a few months before any of your settlements would occur. If that does not narrow your choices to just one credit card to keep, it is better to keep an account that has been open the longest.
Be sure to review these two critical reports about the topic:
https://consumerrecoverynetwork.com/credit-card-debt-to-include-in-settlement-plan/
https://consumerrecoverynetwork.com/keep-credit-card-open-when-settling-debt/
Which is a better end result on your credit report, a short sale or a deed in lieu of foreclosure? Is it true that within two years after deed in lieu you can apply and possibly secure a mortgage loan? We were told that it only stays on report for two years as opposed to a short sale that supposedly stays on the credit report from seven to ten years.
Currently, short sales could prevent you from passing some underwriting standards for a new home loan for 3 years. This was a 2 year timeline, then a 3 year timeline, and I would not be surprised if it was reduced again. But I would not expect it to go more than three years.
A short sale may stay on your credit report for 7 years, but that does not mean it prevents you from having access to certain types of financing for that full amount of time. Read this basic outline about credit reporting and unpaid debt: https://consumerrecoverynetwork.com/credit-report-score-rating-debt-relief-programs/
Have been trying to settle two accounts thru meyer and njus. One is target, (TD bank), the other is jcp,(GE Capital Retail Bank, now Synchrony). Literally cannot afford more than 30%. They started off at 50% then went up to 75%. Now at 60%. They have had the accounts since 4/28/14. Charged off with OC in April/2014. Have been categorized by many other accounts that we have settled with as a permanent hardship because of our situation. Also settled two other accounts with GE Capital Retail Bank at 20%. Anyone have any info on percentages of settlements thru this firm representing these creditors? Trying desperately to avoid bankruptcy. Your thoughts?
I am skeptical that you will get Target to 30%. Target/TD Bank rarely approves that amount of reduction. You were fortunate to have gotten 20% settlement deals negotiated on those other two GE Capital accounts. The targets tend to be closer to 40% on those, so lower than where you are at now, but not where you need to be. And when you add the fact that you are dealing with collection attorneys at Meyer and Njus, you may not get the deals you need.
What are your current hardships in brief?
What are the amounts owed on these accounts?
What is the total of all of your debts?
Thanks Michael !! I am so glad I found this website. I marginally increased my offer to 22% . They declined but did come back with a settlement offer of 35% split into 4 payments not to exceed 90 days. Even at 35% it is a lot of money but I am not sure that it will get any better. I had them put the offer in the notes so I can call back and accept it if necessary. The other options are to pay the minimum amount (roughly 2%) and “buy” another 30 days to negotiate or let it charge off and deal with the credit collection agency they appoint. Another consideration is how annoying a collection company likely will be to deal with. What do you think ? Should I accept the 35% offer or maybe hold out another day and counter at 28 or 30%. I would think Chase would prefer to settle rather than let it charge off . So strange that BofA gladly took 20% right before Charge Off but not Chase. Like you said probably because of success through collection
Each bank can be a bit different. 35% is a much more common settlement than the 20%-ers,even with BofA. If you can afford to take the 35% now, it may be worth the time and frustration savings if the account is sold. And you may actually be saving an extra 5% compared to a collector who gets the account (though some settle for less than 35 percent as you suggest).
There is little benefit to making one payment to stave off the charge off and collection placement unless you are doing it to buy the extra time to settle in full.
I have been trying to settle a credit card with Chase. It will charge off in 4 days. The last 3 times I have spoken to them in consecutive weeks they give me this big song and dance about settling and then after being on the phone for about 30 minutes they tell me its not eligible or the settlement offer was declined. I am running out of time and I can’t believe they won’t settle for 20 cents on the dollar. Do you think they will ultimately settle or let it charge off ??
At four days before charge off, and being told that your account is not eligible for settlement, I am not confident you will get this deal done with Chase. That is okay, as Chase credit cards are currently seeing better settlements with debt collection companies, than when dealing directly with Chase.
Why is it you are thinking they will settle at 20 percent?
Thanks , I appreciate the feedback. I didn’t necessarily think they would accept 20% but I would have expected them to come back with something that would be more palatable to them. My understanding is that if the account charges off then Chase will sell this debt for less than 10 cents on the dollar to a third party. Should I go back and offer them a higher amount albeit one that I can afford. So far all of the creditors seem willing to allow settlement in 4 equal payments not to exceed 90 days. This is the second card I am settling. B of A settled easily for around 20% but Chase has been quite a challenge. I guess that I can deal with the debt collector if necessary but I had heard that they are more difficult to deal with and it will end up costing me more
Chase does not sell all of their defaulted credit card accounts right at charge off. Far from it. In fact, you would have a tougher time settling with the debt buyer than you would a contingency debt collector. You could up the amount you are offering Chase. I would not go higher than 40% if it were me. If you cannot get there, your account may just be flagged for some reason (there are some reasons why creditors opt to not settle accounts), and you then play your hand with the debt collector that gets the account.
Michael, thanks for all the info!
– What number at Chase I should call to try to workout a hardship repayment plan? I am current with my minimum payments, but probably won’t be the next month unless something changes.
– Is there a magic ratio of monthly income/monthly expenses (including settlement monthly payment) to qualify for zero interest for 60 months? I am afraid that they might say that my income is not enough to justify this option, or that is too high to qualify me the best option/zero interest.
Thanks!
Call the number you normally do for customer service that you find on the back of your Chase credit card, or on your monthly billing statements or emails.
Every bank does have there own metrics for deciding which hardship plan you qualify for (interest rate reductions), if any. And there are banks that start ans stop offering the 60month repayment plans. The magic number from Chase is probably somewhere in the vicinity of 200 dollars of discretionary income left over each month after all essentials and other bills are met. If you fall short in their monthly budget analysis you can sometimes over come suitability objections if you have a family member that has agreed to help you with some supplemental income/loan/gift.
…I DID IT! 60 months no interest! very, very pleasant and helpful Chase rep …I couldn’t believe. Now I have to do the same thing with BofA; any advice on dealing with BofA? is there a separate blog?
Thanks Michael and thanks Chase!!!
Nice job accomplishing your goal Alan!
The process for trying to qualify for the 60 month repayment plan with BOA is virtually identical to what you did with Chase. Call and go over your hardship and financials. You may or may not qualify for zero interest with BOA, but having gotten Chase to 0% suggests you would have a good shot at zero, or at least a much lower interest on your other card.
Last I knew, BofA did not allow as much discretionary income as Chase (money left over after all monthly bills and expenses are accounted for). Post an update about your results on the hardship plan page: https://consumerrecoverynetwork.com/hardship-payment-plans/ – or in reply on this page.
Good luck!
I did not click on the notify me of comments via email, so I am posting again. Thanks!
I also got your reader question submission earlier, and sent you an email to the hardship payment plan resource pages on the site.
Michael,
I currently have about $25K debt on a Chase Disney card. Recently divorced, etc. I am struggling to make my payments, but can’t let it interfere with my mortgage. I am current on payments, but only making the minimum required. I do not have a lump sum to try to make a settlement. The interest every month is killing me, making minimum monthly payments will keep me in this debt forever. What do you suggest?
Can you afford to pay roughly 525 a month to your Chase Disney card?
Do you have other unsecured debts you are paying? If so, what are the totals on those cards?
I’m asking a question on behalf of my mother. She currently has about 18000.00 in credit card debt. She She is current on her payments and other bills too. But no savings. At this time she still works a full time job and receives social security benefits. Mom is 78 and we don’t expect her to keep working too much longer. She’ll be running about 700 short at that time. We calculated she pay around 1800.00 in payments to credit cards each month. The balances range from lowest 160.00 to the highest at 3200.00 My question is this should she try to negotiate a settlement to pay off one card each month while making the minimum payment on the others ? If so should she do the negotiating or hire a service to do it?, Well thanks in advance for your insight and advice,
sincerely,Terry
It sounds like the interest rates she is paying on some, or all of her credit cards, are way too high. Paying 1800 dollars a month on 18k of total balances suggests something isn’t right to me.
If your mom can afford to pay about 370.00 a month on these bills, call 888-317-8770 for a free consult with a credit counselor and get an exact monthly payment quote.
Post an update with the result of that consult if necessary, and if the lower monthly payment plan is not feasible, I can offer more feedback on the settlement option .
Hi Michael,
Finding you has given me some hope. My situation: I am in DEEP debt – approx 62k. I lost my well-paying job in 2010 due to disability and am currently collecting SSDI ($1900/mo).
I met with an attorney for a bankruptcy consultation this past Friday and while I am considering this option, I’m also considering the strategies you have posted on.
I rec’d a settlement offer from Chase yesterday for THREE cards as follows:
$8792 > $5980; $6281 > $4272; and, $12822 > $8720 (68%).
I cannot afford $18,972, so I wanted your opinion on whether they will settle for less? I have a lump sum of $9,700 (roughly 35% of what I owe) BUT, I have add’l CC debt w/Capital One (2 mos. behind), Discover (1 mo.) and BofA (2 cards on which I cannot make pmt this month). Any advice would be appreciated. Thank you.
Denise – How far behind on payments to your Chase credit cards are you? If you use all available funds you have now to settle the Chase debts, how much will you be saving up each month to settle the other debts over time? What are the balances owed on your other accounts?
The 3 Chase Cards were last paid in Oct 2013.
I’ll be able to save $1,700/mo by not paying my mortgage (attorney advised it would take approx 2 yrs to foreclose here in NJ) – the “kicker” is that my fiance & I own a house in FL, which is rented — we want to keep it… we are moving there in 3 yrs (son graduates HS)
The other balances are:
Capital One – $7,355 (2 mos. behind),
Discover – $6,694 (1 mo.behind)
BofA – $7,896 and $13,577 (due end of May)
The attorney advised that since there is approx 140k equity in FL, the court will force a sale. The FL mortgage is in my fiance’s name, but the deed is in both names. The house in NJ is only in my name, approx 20k equity…
I forgot to add that my tentative plan is to save the $1,700/mo from not paying the NJ mortgage plus an add’l $300/mo; and use it to pay-off the other cards at reduced rates. I’m figuring that in 6 mos I’ll have 10k saved – does this make sense?
My estimate is needing roughly 10k to settle the 3 Chase credit card debts. That figure is based on the accounts being and the early part of second stage collections, or about to enter stage 2 (where debt collection agencies working for Chase call and write to you).
I estimate needing about 7500 to settle with Capital One and Discover in the next 4 months.
I estimate settling the two Bank of America credit cards for between 8 and 9 k in about 6 months.
So far, given the information you have shared, I like your odds of settling all the debts and avoiding more complicated solutions.
Michael,
I’ve now read the entire “debt settling course” offered here plus many other posts re specific CC Co.’s & I have some ques (I’m repeating details to make it easier for you) My situation/plan has changed. First, my BF (fiance) made the mo. pmts on Disc & the 2 BofA accts in May (to buy me more time?) after I explained the “settling options”.
Right now I have 3 Chase cards last pmt 12/2013 ($27,897); Cap One last pmt 3/2014 ($7,355); & Wells Fargo last pmt 4/2014 ($1,200).
My BF does not want to foreclose our home as he’s been paying mtg for 4 yrs – Equity appx. 45k (My plan was to use the mtg $) Plus we SHARE ownership of house in FL which we want to keep (Equity appx. 148k).
I have $9,700 saved plus mo. DI of $1,900 (ex. for next 4 mos. its $1,450 due to payback of an over-payment) and net Rental Income $575. In 6 mos I’ll have $15,133 saved, assuming Chase will settle for $9,700. The other issue is the TAXES on the settled debt – considering the Equity I have (I just removed my name from the Deed & the mtg is in HIS name only) I’m kinda desperate for help as I’m so afraid my fiance is going to walk-out and I can’t say I blame him. I would truly appreciate your help as I think I’m stretched way too tight to afford prof. help.
Based on your comments and circumstances I would encourage you to talk with one of the specialists I refer to on the site. You can get through this and negotiate settlements on your own, but with the one on one guidance of a professional. Fill in the little form to the right in the side bar. I will receive that and forward it to Steve or Paul for them to schedule a consultation with you.
Additionally, won’t that result in paying taxes on the amounts forgiven?
Even if through Sherman?
Yes and no. Settling your old Chase account with LVNV, if you save more than 600 dollars, can result in a 1099c being sent to you and the IRS. Whether you owe income taxes on the amount you saved will depend on whether you are technically insolvent. Many people I work with over the years do not end up owing taxes. You can learn more about this issue here: https://consumerrecoverynetwork.com/debt-forgiveness-taxes-settled-credit-card/
Thank you.
I checked and the last payment was no later than Dec., 2009.
Today I received a voicemail with the same phone # — this time they identified themselves as Vetnrue (?). It was hard to understand. Not a real person.
The last dollar amount owed was $7,200. Yet on my credit report it says $11,000.
My concern is, if I settle for let’s say $5,000, I will still have to pay taxes on the forgiven amount which would be $6,000.
That would be Van Rue, and established debt collection agency.
You could actually end up with a 1099c filed for the whole balance, even when not settling. The number they report will be the one that you work with via tax computations. Talk with a tax pro about the implications here for you.
The thing about this credit card debt having gone unpaid since 2009… it is typically considered to be beyond the SOL of 4 years to legitimately sue you for collections. This will put you in a better bargaining position, if you proceed to settle this account.
I appreciate your input.
… So, how does LVNV – Sherman turn into Van Rue?
And, I have never received a “letter” they said they sent me
Already they don’t seem trustworthy.
LVNV Funding is a large debt buyer, but does not necessarily do their own internal collections. They consistently place accounts they buy out for collections from other companies. That is why Van Rue is involved. You can negotiate the deal with them, get it documented, and then pay, if that is the route you want to take. If you have any concerns about who is legitimately collecting, you can contact the debt owner and confirm that over the phone too.
I received a voicemail today from a debt collector.
I looked at my credit report and found that my Chase account is in collections with LNV Funding.
I am just beginning to get my head above water from financial woos that happened 4 years ago.
The voicemail did not say “who” they were nor the debt they were trying to recover, only that they sent me a letter (which I have not received) and I needed to call them back.
Everything I have read about LNV is not positive… even a possibility that paying them will not clear the debt nor make them go away.
How should I handle this?
LVNV is not hard to deal with.
What state do you live in?
Do you recall the precise month and year you last made a payment on this Chase credit card?
What is your goal with this account?
Do you have other debts out that that have gone unpaid for as long, or less time? If so, how many, and what are the balances?
I live in Nebraska.
Originally debt was $9,000 now it is $11,000.
I will have to check but I believe I last made payment in 2010, however my credit report says
Jan., 2011.
I would like to pay it, but it would have to be over a period of time – I do not have $11,000 to pay at once.
Discover – $4,000
Walmart – $1,500
Capitol One – $5,000
I have not heard a word from anyone for about 4 years.
At which time, I paid 4 accounts via settlements.
I don’t even know how to contact these accounts … don’t know if the debts have been sold
or not. How do I know?
When you last paid is going to be important at this point. If for example, you last paid your Chase credit card that LVNV Funding is now trying to collect from you, in February of 2010, the SOL for them to legitimately sue you in court to collect has passed. You can still negotiate a settlement with LVNV, but you would be in a better position to do that with that leverage removed.
That same thing would apply to negotiating a reduced payoff amount with all of your creditors. If those debts are all passed the SOL, I would target 40% or less in your negotiations to settle all of them. And if you are not concerned about your credit score, or how your credit reports are viewed, you could manage your way through collection calls and notices for the next 3 to 4 years, and not settle with debt collectors (if the SOL is passed for all of them).
If you confirm through bank records that your last payments were in fact in 2011, you could be at high risk of being sued from now until the 4 year SOL expires.
Verify when you last paid and post an update.
Chase did sell your account to LVNV Funding, or Sherman Acquisitions (same family of companies). As for whether the others have been sold, what are the names of any debt collection companies appearing on your credit reports, including ones who have made inquiries?
No other names appear on my credit report for those accounts.
First, I will check to see ‘when’ a last payment was made to them.
If it were in 2011, and I return their call, what can I expect?
Use some of the tips and timing when negotiating with debt collectors in this article: https://consumerrecoverynetwork.com/question/settling-charged-off-credit-card-debts-with-collection-company/ and in this video: https://www.youtube.com/watch?v=NpuAUvjtzKo
We had a $20,000 balance with Chase and got into a 60 month hardship payment plan at 0% interest. We paid each month faithfully – it was automatically taken from our checking account. Last summer we paid the remaining balance. (Keep in mind – we did not have them settle, as far as knocking off any of the balance, only lowering our interest rate and monthly payment). Now that they have the $20,000 we paid, I looked at our credit report and it says we missed 39 payments. I called Chase and they were no help. Seems that if my credit was going to be ruined anyway – why bother paying them all the money back. They are very difficult to deal with and this just doesn’t seem right. Paid it all back and got screwed in the end anyway. My husband says he can sleep better knowing that we paid it all off on our own – I do not share the same opinion!
Tina – Can you tell the impacts of how Chase is showing the late pays to your credit score? Was this the only account that got the hardship treatment? Was there an reference to Chase agreeing to reage your account way back when you set up the payment plan?
Hello Michael,
i have 2 chase credit cards :
1)Chase Slate – Current balance is $4,732.34 [i use it over a year]
2)Chase Disney – current balance is $5,287.07 [is a new card and is not eligible for a settlement ]
and i am about 3 months late. I closed both accounts 2 months ago. I spoke 4-5 times already with Chase representatives and explained them that i am going through hardship: t my husband is a bipolar and during the manic state he bought lots of things on my credit cards for almost 10,000 dollars. After that he was admitted to a mental ward. Later my financials situation even got worse: the place where we lived was on fire. So Chase offered me a hardship payment plan and we were discussing the amount of $100 for both cards. BUT i can’t enroll the plan until i have a steady income. I currently do not work. I am a full time student. Both cards are on my name. My husband gets SSDi = $744.
Michael, how low can i go with the monthly payment? Can i go lower than $100?
Can i use my husband’s money for monthly payments?
Do i have any other options?
Thank you, Natasha
Natasha – The lowest you can get on these repayment plans, at least that are long term, is about 1.7% of the balances as a monthly payment. Here that would mean 170 a month. Anything you talk about with Chase for 100 a month that is covering both cards would either:
Not be long term, so maybe lasting 3 to 6 months or so.
Part of a new pilot program they are testing (this kind of thing happens from creditor to creditor).
If the household income is 744.00 a month (is that correct), I would not spend any money on the Chase credit cards. You can navigate this debt with debt collectors down the road, and if the collections escalate to being sued in order to get paid before you can put a plan together (negotiate settlements), you have options to consider then too.
If it were me, I would stand pat (pay nothing) unless your income is more than what is suggested in your comment above. Pay nothing until you have more to work with, even if that means dealing with collectors etc.
Michael,
I have never missed a payment of any type, and am 33 years old. I got a job promotion and salary raise, which lead me to apply for new credit based on my salary and made some expenditures after doing so. I was fired shortly after and had no salary for 6 months before getting a new position at a much lower rate of pay. My balances are not “big” in the general sense, but they’re big to me in comparison with my salary.
Basically, I’m making headway on my other cards, but the Chase card with a $10,000 balance increases in debt even after my minimum payments.
My question is if I call Chase and try to workout a hardship plan such as the 0% interest for 60 months, and I pay it off (let’s say I pay it off in 18 months), will they let me keep the account usually or is the card gone the minute I accept a plan to pay it. It is my only good limit card, and I’d like to keep it moving forward.
Dan – The most realistic expectation is that accounts enrolled into long term hardship payment plans (more than the 6 to 12 month variety) will be closed. I do know of a couple of instances where banks did not close self enrolled accounts into 60 month plans – that were not already delinquent 30/60 days – but it has been a while.
You can call Chase and ask about that, but be aware that you are telegraphing to them that you are an increased credit risk when you do that. So, even if you decide not to try for any hardship or payment adjustments, you could still see your credit limit decreased. Make that call when you are confident of the path you are going to take.
Hi i have 2 chase cc i would like to settle and ,also ,i have two checking accounts with Chase. what do i do/ Is that going to affect my mortgage /i have that with Chase/ thank you
marina – I have never seen a situation (out of many thousands) where settling credit cards with Chase has any impact on your mortgage. Chase may only be the services of your mortgage. Just keep payments up.
What you will have a problem with, in my experience, is the checking accounts with Chase. What are the rough balances on the Chase credit cards? How many months late are you with paying?
Hi,
I am about 4 months late on payments to Chase. I currently have a balance of approximately 22,000. Each time I have requested a settlement I am told that my account was not eligible at this time for a settlement, Earlier this week when I was again turned down for a settlement, I accepted a payment plan with a lower monthly payment and 0% interest. It was made clear that if I fulfill my side of the plan, I would not be able to enroll in any future plan, but it wasn’t clear whether that also precluded settlement in the future. My financial situation has changed dramatically in the few days since I accepted the plan. There is no way now that I will be able to pay the $337 a month I agreed to pay monthly. I should be able to borrow some money down the line or get a better paying jobs, get roommates etc., but I am concerned that between the interest rate and penalties, if I am not able to settle because I breached this agreement, I will be in a very bad situation. I don’t want to ask Chase because I’m sure they will tell me that settlement in the future was forfeited when I entered into the payment plan, leaving me no choice but to try to come up with money, but I very much doubt that I will be able to make more than a couple of payments. She did mention that after a while (12 months???) after I have payed down my principle, I may be able to settle, but it was an off hand remark. Any advice on my situation?
Thanks, Lucy
Lucy – Generally speaking, consistently calling into a bank like Chase and bringing up settlement, before the optimal time they trend with offering to settle (after the 5th month of missed payments usually), can result in what you described their responses to be.
It sounds like Chase offered you their best hardship repayment plan (zero interest for 60 months). Banks like Chase do have some latitude in offering other repayment options, but they have regulators that set policy too. Some of that policy includes limiting repayment plans like you were offered.
Settling with Chase is different than the payment plans and hardship programs. Once Chase charges off the credit card debt, all settlement options will likely be on the table, in my experience to date.
You can only do what you can do. If you cannot meet the payment commitment now, or lack confidence you would be able to in the near future, its not a good option to pursue. The opportunity to settle will come, or you may need to consider alternatives if your situation doe not improve. Are there other unsecured debts that this one?
I am trying to settle the debt I have with Chase Bank and the balance is 14.000.00. Chase has placed the debt with a collection company called Management Services Incorporated.
I am trying to contact them and see if i can reach a settlement. I have called them a couple of times and left a messege but I never got a call back. I can offer them a settlement of 30 % at this time and I am able to pay them in a lump sum payment. However, the other day I received form 1099C, Cancelation of Debt from Chase. I am confused because I thought that I can only get a 1099C on the debt that has been forgiven, but as I mentioned above I haven’t even been able to get in touch with them. I don’t know what to do because I am planning to file taxes pretty soon and I don’t know if I have to file 1099C for this debt. I am really confused right now. Does this happen or is this a mistake on their part?
Also, I managed to settle three of my credit cards late last year, but i have not received 1099C for neither one of them. Should I contact them and ask for it or should I just wait?
Thank you,
Adie
Hi Michael,
I lately settled with three of my credit cards. I managed to save for about a year and offered to pay them a lump sum of money. Two of them were settled at 50% (Bank of America) one at 30% (Dicover Card). I have another credit card that I want to settle but to tell you the truth I do not have the money to pay them now. The debt is from Chase Bank and the balance is 14.000.00. Chase has placed the debt with a collection company called Management Services Incorporated.
I was thinking about calling them and trying to offer them monthly payments. I know from past experience that they prefer lump sums of money rather than monthly payments but I just can’t do that right now.
To tell you the truth, I don’t want to wait too long before I settle with Chase because I am afraid they are going to sue me and it gets harder to settle for less at that stage.
Do you think I should call them and ask for a settlement and monthly payments or should I wait until I have a lump sum of money and make them an offer then?
If I can target a settlement of 30 % I can probably spread it over three payments. If it is 40% it has to be spread over 4 maybe 5 payments.
Thank you
Adie – Thanks for moving the discussion over to a Chase credit card settlement and payment page. I mentioned on the other page that Chase may not have sold the debt off to a buyer, but may have your account out with an assignment debt collector. I had asked if you could come up with a settlement of 30 to 40% if the settling and agreeing to pay that percentage were able to be spread out over a few months.
When your Chase credit card debt had not been charged off you would have been limited to 3 roughly 90 payment terms on the settlement with Chase due to guidance Chase must follow that from their primary regulator the OCC.
After the account has charged off, the 3 month payment term with the settlement are not a regulatory concern, but can still be a factor. The reason being is often due to this line of thinking – If you can pay xxx.xx amount for several months toward a settlement, why can’t you pay xxx.xx amount for many more months?
It is best if you are prepared for this line of reasoning from the collection side, whether settling your credit card debt with Chase after charge off, a debt collector Chase placed the account with, or when dealing with a debt buyer.
I do consistently see 30 to 40% settlements with Chase accounts as of the date I am commenting. I do like you chances of getting this stretched out to 4 or 5 payments with Management Services. Is the name of the debt collector Resource Management Services Inc?
In answer to your question about waiting for a lump sum:
It is optimal to settle with Chase and most major credit cards with a lump sum payment – no matter what stage of collection you are in. The reason is two fold:
1. If you only settle for a lump sum you can manage at the time, you remove the risk of having made one or two payments toward a settlement, but them having a bump in the road where you are not able to make the next scheduled payment. Missing payments on a settlement agreement often means losing the deal, the money you made in payments already being applied to the full balance, and negotiating all over again.
2. You have a set amount to settle using funds from whatever source and remove the line of thinking I mentioned above that collectors drift toward when longer term payments on a settlements are asked for.
When getting a settlement from a debt collection agency with more than a couple of payments involved, it is best not to leave an impression that the monthly payment is what you can afford from your monthly income.
Hi Michael,
I need advice. I went bankrupt 11 years ago and I though Chase Credit was one of the cards charged off. I don’t even remember having a credit card it’s been so long. I received a letter from Midland Financial that they were taking me to small claims court for the debt owed. I haven’t had any communication from any of my debtors since the bankruptcy until now. I live in Maine if that helps, but I am very confused why this is happening. Also, if I am liable for paying off a debt after bankruptcy, can I still do this and avoid going to small claims court? Thank you
Was the bankruptcy chapter 13 or 7?
Is the Chase account on your credit reports?
It was Chapter 7 and this account is on my credit report as a closed account, but it was not part of my bankrupsy
When was the last payment made on this account? What state are you in? I want to determine if the SOL for you to be sued has passed.
You can pay off, or negotiate and settle your Chase account with Midland Funding and avoid court. I would want to make sure the collection is valid first though.
Hi Michael, I went ahead an settled with them a couple weeks ago. I received a letter that this was paid off, now I just got home today and received a new letter from the Maine Small Claims Court that the Plaintiff (Chase) is requesting a continuance and that I need to appear on 2/25 – this can’t be correct seeing they accepted my payoff right?
Call Midland Funding directly, and also the attorney handling the account. Make sure the records all reflect this was settled and get them to withdraw from court. If you have not been able to do that to your satisfaction be sure to show up in court on your hearing day with your settlement agreement and proof that you paid. I have seen too many cases still get rubber stamped even though the settlement was completed. You avoid that by being there.
Thank you Michael, I called Midland but they would not speak with me, they referred me to the atty, I will call them today. Thank you so very much.
I have a balance of $6400 with chase. The last four months I have been sending them between $400 to $700 a month to get my balance down because I am needed to relocate to take care of my mom and will not be able to work. I asked them to do a one lump settlement and offered $4000. They would not settle. The best they could do was give me 92% and wanted a lump sum of $5900. I explained that I sold my car for $3300 and had only $700 in my savings. They did not care. I think my mistake was that I have been paying consistently and have no late payments.
You will not get Chase to settle with you for the most favorable rates until you are typically 5 months or more behind. That means your credit score takes a hit. That is the trade off.
Are thinking of waiting them out to settle down the road? Do you have any credit or finance goals for while you are moving,or in the next 6 to 12 months?
Hi I currently have $11,000 in credit card debit from chase bank. I recently lost my job and my income has dropped dramatically. I currently only make 1500 per month after taxes. I am also a sngle mother of 2 kids. I am current on my payments as of now. I wanted to if i could do a debit settlement or if there was something that you recommend that I do
What is the interest Chase is charging on your credit card?
Do you have other credit cards with balances on them, and if so, how much do those add up to?
I do recommend settling debt when necessary, but not as a first resort.
Post your answers in a comment reply and lets go from there.