Chase Settlement help

[Burci]

I have a bit of a unique problem, or at least I haven't seen anyone else with similar comments. I have recently divorced. I "won" all of the debt in the divorce, including a card that is only under my x-wife's name. I soon thereafter lost my job and my income was cut by 2/3. The debt under my name totals about $45k. The debt on my x's card was $17k. I have stopped paying everything that was in my name and am probably looking at bankruptcy. I can't afford to pay the card in my x's name either. She did negotiate a lowered monthly payment and closed the account, which would be helpful, but I still can't afford to pay it. I have found a family member willing to give me $12k, if I can talk Chase into settling the account, but isn't willing to simply pay the amount and have me still paying monthly installments. My x is threatening to sue me and try to get me held in contempt of court for not paying the monthly payments. I contacted Chase and requested a settlement. A few days later, they told me that the request was denied and that this account would "never, never, never be eligible for a settlement". I was told that due to the account agreement and credit history, it was bank policy that this account not be eligible for settlement. I want to get this card taken care of and not have it hanging over my head (or my x's), but Chase is refusing to work with me. My x would rather pay the account's monthly payments and have me held in contempt, than allow the card to be delinquent, giving me more ammunition to work with. Anyone have any thoughts on how to deal with Chase? If the card is not delinquent, is it worth continuing to call to try to get someone else to work with? I recorded the phone call and am going to put it on youtube. The lady made no sense in her reasoning. Will bad publicity help at all? I just don't understand why they would not take $12k now, vs $175/month for 8 years... That's bad business sense, in my opinion. Please help.

[flyinbroke]

Because if you were just paying 175 a month it would be 16.8K. However that 175 covers interest and principle, and the interest is slapped back on the following month. So ultimately they will get way more than 16.8K. Subtract the finance charges from the payment; this is a far better estimate of what you are actually paying every month.

I guess I am wondering how you got stuck with a CC that you don't have your name on. Why isn't XW paying for her own damages?

[helpmeout]

You aren't the one that Chase will come after if the cc isn't paid. It isn't your credit rating that will be tanked if you don't pay. Your ex is the one who will have to deal with this particular creditor.

And you may not be able to get out of paying your ex's credit card. Even by declaring bankruptcy. It's going to depend on the wording of your divorce decree. In mine there is a section that addresses bankruptcy on either part. Had my ex's name still been on my mortgage, they would go after him after I file. And he would be able to go after me in family court and get an order for me to pay it.

[Burci]

Flyinbroke: Accepting all of the debt, including hers, got me out of paying alimony, which probably would have been more than the monthly fee on her card. I was also trying to be the good guy (she had not worked in 10 years) and help her stay out of debt. My atty recommended against it, but I did it anyways.

helpmeout: Yeah, I know she'll be responsible for the payment, but then she will file contempt of court charges against me and I can't afford a lawyer either. She's already threatening to do so through her atty. No, I can't bring the debt with me to bk, because the card is completely in her name. I want to pay the card with the $12k that has been offered to me and get out from under it completely. Chase won't even consider a settlement though, likely because it's not behind on payments. The account manager said it would "never, never, never be eligible", but I imagine that's only to scare me into keep paying. If I could somehow talk my x into allowing the payments to be delinquent, then I would be better off and have some room for negotiation. She won't consider that though at this point. She'd rather see me in jail and unable to even pay child support then endanger her credit score.

[brokenymom]

chase will consider a settlement... trust me i know this is what i do for a living. they are settling accounts at about 30% depending on account history. did you speak to customer service? recoveries? and what did you say? what was the reason for settling? i have been in collections for many years all bvanks are willing to settle . please contact me if you have any questions happy to help

[DebtHater]

Chase telling you they will never settle the account is a scare tactic. The problem is that if it's not in arrears then they won't. The account will need to be 90 days past due for them to even hint at a settlement. That is about how long it took before they offered me a settlement. Unfortunately they refused to put any settlement offers in writing.

If you were to file BK that debt to the card can not be BK'd. But the debt to her may be able to be BK'd since it's not alimony. That is something a BK lawyer would need to answer based on your divorce decree and the applicable laws.

[Burci]

Brokenymom: Thanks for your response. I think they will settle to, but my x-wife is refusing to let it go delinquent. That's causing Chase to have no reason to work with me. I may want to talk with you more, depending on what feedback I get from the x, the bk atty and the bank. Thanks for offering!

DebtHater: I don't neccessarily want to file it in my bk, but I really had never even considered it. I didn't even think it an option. At the very least though, I might be able to convince the x to allow it to go delinquent, or threaten that I'm just putting it in to my bk. I'm sending the decree and the question to my bk atty now. Thanks for the suggestion. Maybe this way, she'll let it go, they will work with me to lower the settlement and other the blemish on her report, we will all win. If she refuses, then bk to her may be the only way around it.

[AMISLANDER]

If you're that far gone, don't take a settlement, it will be 1099'd onto your income and you will pay taxes on it.

File BK & get the ball rolling.

[Burci]

Amislander: The problem with not accepting the settlement is that even if I am able to bk it personally, the bank will not let the x out of it. They will still make her pay it, since it's only in her name. I'm having both divorce and bk attorneys check in to see if I can even bk it, since it's in the divorce decree.

If it is possible, since the x will still have to pay it, I would rather just settle it and not put that burden on her. She can't afford it either. I just want to be able to get it far enough delinquent that the bank will consider a settlement. The peronsal BK would be more of a threat to the x, trying to force her hand to allow me get the debt delinquent enough to make the offer. So far, she's refused to let me do anything on the account except pay it. If she thought I might be able to escape it all together, she's going to be a lot more likely to let me control how we proceed with Chase.

[nerves]

If you manage to settle this debt, keep in mind this may be considered a preferencial payment if you file bk. Timing will be key filing your bk.

[helpmeout]

If you're that far gone, don't take a settlement, it will be 1099'd onto your income and you will pay taxes on it.

File BK & get the ball rolling.

He won't be the one who gets the 1099, his ex will.

And if there is a clause in the decree that indemnifies her (and any decent attorney would get that in there) in case he declares bankruptcy on this particular debt (or any other debt that has her name on it), then he's not going to be able to get out of it. Even if he lists her as a creditor.

Another thing to consider, if the wording of the divorce decree states that his taking on the debt is in place of spousal support. She's going to be able to go after him for spousal support if he is able to BK this particular debt. He probably should consult with a family law attorney to see just what his risks are for backing out (and that is what he is doing) of his agreement.

[Shuganon]

Sounds to me like Chase should not be talking to you at all. You do not have an obligation with chase unless Chase was a party to your divorce settlement. If Chase is talking to a party outside of a debt agreement, your wife should be going after Chase, not you.

If the payment is really in lieu of alimony and not a part of your property settlement, you are paying alimony. Alimony is any payment in cash or kind for a fixed amount for a fixed number of years.

When I was divorced my papers did not speak to alimony, but I had to pay for my EW health insurance for three years. This was not a payment directly to her, but an addition on my health policy for the time period in question. It was considered alimony (though not stated). By the way, it was deductible on my tax return and taxable to her.