How nice of Chase

[Regrets]

I have an several accounts with Chase, but one of them is for over $20,000. They were already told of my intention to file BK, and they have my attorney's number. They called me this week on my cell phone. The lady acknowledged having my attorney's number at the beginning of the call, but said she wanted to offer me a settlement amount of $3,100. I said that they could speak with my attorney, and she said that once she speaks with my attorney, she can't discuss the account with me anymore. I replied that since she had spoken with my attorney already, she shouldn't be calling me now. She acted all shocked, like she called to give me a huge present or something. Yeah, like if I had $3100 sitting around I would be in this shape in the first place. And like I am gonna put myself on the hook for the income taxes on the $17,000 they would be forgiving.

[OhioFiler]

15% isn't too of bad of an offer.

[Pizza]

15% isn't too of bad of an offer.

If OP was already planning to file BK, 0% would be the better offer.

[OhioFiler]

If OP was already planning to file BK, 0% would be the better offer.

Concur.

[backtoschool]

Wow 15% settlement from Chase is really a good offer. I know that 0% in a chapter 7 bankruptcy is a better offer, but when I was still at my formerly high income and was trying to settle, Chase never came close to 15%.

Times have changed, it seems like for many high income filers that will end up in a 100% pay back chapter 13, (like I would have been in at my former salary), settlement might be more of a genuine alternative now than it used to be.

[Pizza]

That is a good offer. The sad part is they are only offering it because it's better than nothing, which a BK will provide them with. Try talking to a creditor without mentioning BK and see if you can settle that low. I don't see it happening. The banks are in business to make their money back with interest and without dropping the BK bomb, they will go for the throat to do so.

[treehugger1]

I also think there is some 'reason' as to why you can get such settlements but they generally want them in 1-3 payments. If they suspect you could file for BK in the future, they certainly want their money before they run the risk of having to give money back to a Trustee, under preferential payment rules.

[Regrets]

Yes, before this, their best offer was a lower payment for 12 months. I tried and tried to keep that deal, but would have lost my house if I did. All I asked them for in the past was a lower interest rate, but they couldn't talk to me because it was my husbamds account. Amazing how they will talk to me now that they aren't getting a dime.

[Regrets]

Also since it was OC calling, the fact you have an attorney means nothing. They can call you till the day your provide them with a case number. Remember the FDCPA does not apply to OC creditors (unless your state laws allow for something different).

California is different. She gave me her extension, because she said she can't call me again.

[catleg]

I think most of the major national banks are reluctant to have it known that they have settled accounts for below 50% because it sets a bad precedent for them. I suspect that in cases where they're willing to take less than half, the offer is usually made through a collection agency who takes enough padding for themselves so that the consumer is still paying close to half. BofA has been the one known exception to this, and Advanta has also been known to settle, but they're mostly off the stage now.

I'm about 1 year late now on about 30-40 cards and have 8 lawsuits by 10 card accounts to show for it, and only got offered a good settlement once by BofA on a business card, but decided to let it go since it wouldn't have kept me out of bankruptcy eventually anyway.

My most recent offer was from Citi on an Exxon gas card, balance about 1300 now, was originally 1000, they're offering to settle for 800, which is either 500 or 200 off depending on how you look at it.

[treehugger1]

I'm about 1 year late now on about 30-40 cards and have 8 lawsuits by 10 card accounts to show for it, and only got offered a good settlement once by BofA on a business card, but decided to let it go since it wouldn't have kept me out of bankruptcy eventually anyway.

My most recent offer was from Citi on an Exxon gas card, balance about 1300 now, was originally 1000, they're offering to settle for 800, which is either 500 or 200 off depending on how you look at it.

30-40 cards?!

Before I let everything go, I had offers of 0% for a year from Citi at reduced payments. Of course this was after about 120 - 180 days of late fees and 29.9% interest. C1's, BOA's and FIA's (old MBNA) hardship department will also work with folks, but again my experience was close to chargeoff and after hundreds of dollars in late fees and 30% interest. Financially, it doesn't seem ot make good sense.

In particular, the amount written down under settlement could show up in a 1099 and you could owe taxes on accumulated interest written off. I have heard that the 1099 is supposed to contain a breakdown of principle and interest, but if not, then this makes even less sense. I've heard a few stories related to JDB's sending a 1099 for settlement, where they bought the debt along with all added on interest, fees etc. and failed to provide any breakdown of principle, fees, and interest.

[albacore44]

Yeah, i got a lot too, but not 40. I just got done totaling outstanding unsecured CC debt from my credit report, had not done it in a while, with all the fee's etc. its up to $195K..........I have a headache

[Regrets]

I'm not taking their ridiculous offer, but I will at least talk to them and act like I am trying to get the funds, so that maybe it will buy me some extra time.

[ChaseBites]

Its a trap. Dont call, or talk to them. They will use this to object in 341 meeting. They will argue that if you could settle for $3K then why need to file BK?

[JimKutkowski]

Its a trap. Dont call, or talk to them. They will use this to object in 341 meeting. They will argue that if you could settle for $3K then why need to file BK?

If you have determined to file bankruptcy, just hang up the phone, don't give them any information they can use against you.

These are great topics guys, I came here looking for ideas for my blog and now I have a few.