strange thing with my chase card?

[AfraidOfBK]

My chase visa sent me a letter (after ONE missed oayment and NO communication with them since then- i block hteir calls).

THey said they were lowering my credit limit to 8600. the balance is close to 8200. Obviously, i am not charging on the card anymore and they gave me a bunch of boloni reasons why they were doing this - but my wuestion is- what happens when late fees/interest pile up and exceed the credit limit? If i have to wait to file until july or august (or maybe even longer) is this a possibility?

And if it is - i was hoping for a somewhat uncomplicated bk....surrendering a home and three credit cards and some medical bills. I was going to easily list all these creditors since NONE of the accts have been sold to some third party collections agency (YET). Once they are, do you have to list the credit card acct, and the collection acct to cover all of your bases? I would NEVER want to miss a creditor and have it come back to haunt me...i have heard on this forum about people getting calls from collection agencies even though they discharged the cc debt in bk, but the acct was apparantly sold before they knew it..

this kind of freaks me out...i am filing ch 7 by the way....anyone experience this?

[WillinVT]

My chase visa sent me a letter (after ONE missed oayment and NO communication with them since then- i block hteir calls).

THey said they were lowering my credit limit to 8600. the balance is close to 8200. Obviously, i am not charging on the card anymore and they gave me a bunch of boloni reasons why they were doing this - but my wuestion is- what happens when late fees/interest pile up and exceed the credit limit? If i have to wait to file until july or august (or maybe even longer) is this a possibility?

And if it is - i was hoping for a somewhat uncomplicated bk....surrendering a home and three credit cards and some medical bills. I was going to easily list all these creditors since NONE of the accts have been sold to some third party collections agency (YET). Once they are, do you have to list the credit card acct, and the collection acct to cover all of your bases? I would NEVER want to miss a creditor and have it come back to haunt me...i have heard on this forum about people getting calls from collection agencies even though they discharged the cc debt in bk, but the acct was apparantly sold before they knew it..

this kind of freaks me out...i am filing ch 7 by the way....anyone experience this?

From what I have been hearing, a lot of credit card companies are lowering credit limits even on accounts where people aren't behind on there payments.

As far as interest and late fee's piling up, that will happen. Once it reaches the $8600 limit you have, it will continue to grow on that. I am in that boat right now. When I stopped paying on my cards back in March, I was already maxed out and since then, the fees keep coming and coming.

If you are worried about your accounts going to collections after you file, if for some reason you do receive a call or letter from a CA after you file, definitely let your attorney know ASAP if you are using one so this can be taken care of.

[LuciluS]

We stopped paying our credit cards in late Sept. and will not be filing until 9/30/09 as we need some income to drop off.

I've received several collection agency form letters. When I got my first one, I faxed it to our Attorney. He emailed me back and said to keep CA letter, but we didn't need to respond.

First off, the CC or CA, would have to file suit in Your County of your State and pay a lot of fees. If you have retained an Attorney, make sure you let every CC company know. Then, you can ignore the rest of the phone calls.
They know if you are filing bankruptcy, the lawsuit should automatically be discharged. Our Attorney said we only needed to be concerned if we receive something Certified by Mail, UPS or FedEx as he will file something in Court to delay any lawsuits until we get are bankruptcy filed.

I think legally after 180 days of no payment, CC companies either have to write off your balance (which they won't do) or sell your CC in a batch with other late filers to a Collection Agency. I've answered a few of the CA calls and given them our Attorney's info. Of course, they want to know what Chapter you are filing and why you quit paying. I just tell them Our Attorney will answer your questions.

They can also pull your Credit Report and see you are not paying any CCs' and know you are in the process of 'doing something' with your Credit Cards.

In completing the Credit Matrix, I am listing the Credit Card first with the Silly balances as of 8/30/09 (which include all those late fees, penalties & higher interest rate) and their address & Account Number. I honestly could care less what the balances are. I know what they were when we stopped paying. If they want to jack them up more, so be it. Trustees know CCs' are doing such. My next line is the Collection Ageny. I'm just listing their name and address and leaving the Balance entry blank. Some of the CAs have listed a New Account #. I'm not listing it...only the original Account Number.

Haen't asked my Attorney if this is Acceptable, but I'm sure it would be. Even though, some have said, all debts whether listed or Not, are discharged in a Chapter 7. This ole gal doesn't want any suprises, so for our Bankruptcy I'm covering all bases or in layman's terms, covering our arses

Luci

[liz417]

Hi,
Yes, that happened to me with Chase (BEFORE I even considered BK), they were first to reduced my limit to about $200 above my balance and I had NEVER missed or been late on a payment and most months I would pay more than the minimum payment! They continued to do reductions/lower my creidit limit each month when I made a payment and because it looked like I was at "my limit" on this card (one of my biggest balances), my other cards followed suit by reducing their limits and increasing my interest rates from 4%-9.99% to 28% and 30%!!! Mind you, I WAS NEVER LATE! When I called and spoke to Chase, they told me that have a dept that monitors people's cards and looks for "trends" to reduce loss for their company...I guess they were right...I'm filing BK now... It pisses me off because, yes I had debt, but it wasn't until the 1st cc company (Chase) reduced my limit thus causing my credit score to drop, then all my other credit card companies followed suit by increase my interest rates using the "excuse" that my score was dropping and I was at MY LIMIT! Well, duh! I couldn't afford the $1,400 min payments (total) after that....

[albacore44]

Hi,
Yes, that happened to me with Chase (BEFORE I even considered BK), they were first to reduced my limit to about $200 above my balance and I had NEVER missed or been late on a payment and most months I would pay more than the minimum payment! They continued to do reductions/lower my creidit limit each month when I made a payment and because it looked like I was at "my limit" on this card (one of my biggest balances), my other cards followed suit by reducing their limits and increasing my interest rates from 4%-9.99% to 28% and 30%!!! Mind you, I WAS NEVER LATE! When I called and spoke to Chase, they told me that have a dept that monitors people's cards and looks for "trends" to reduce loss for their company...I guess they were right...I'm filing BK now... It pisses me off because, yes I had debt, but it wasn't until the 1st cc company (Chase) reduced my limit thus causing my credit score to drop, then all my other credit card companies followed suit by increase my interest rates using the "excuse" that my score was dropping and I was at MY LIMIT! Well, duh! I couldn't afford the $1,400 min payments (total) after that....

yep, Chase was the first to do it to me in October. it was my oldest card. took 5K off my credit limit, left it $200 above the balance. no late pays, good credit score.......sorry guys, guess you will be gettin nothin now.

[thereshope]

Chase lowered my account limit $4000 while I was current on my account. Had never missed any payments. The moment I missed a payment they added monthly late fees and increase the interest rate to like 30%. Once I became over the limit they also started charging monthly over limit fees.