Sarah Edwards | December 27, 2022
Summary: Chase is one of the easiest creditors to settle a debt with. If you’ve been sued for credit card debt with Chase, you must file an Answer to the lawsuit. Then, you can reach out to negotiate a debt settlement and get the agreement in writing when reached. SoloSettle can help you settle your debt on your own, putting you in a better financial position to pay off other debts and improve your credit.
Credit card debt can haunt you. So can debt collectors. But if you try not to think about it, the problem will eventually go away, right?
Unfortunately, if you’ve been receiving phone calls or letters from Chase Bank, or someone claiming to represent them, you’ll need to formulate a game plan before things get worse.
Your best bet is to settle your debt for a lower amount, which can save you money as well as prevent you from going to court. Here’s how the process works.
Ideally, you’ll want to settle your debt with Chase directly. But if you’ve already been receiving phone calls from a debt collector, it’s likely that Chase has sold your debt to a collection agency that hopes to recoup the losses directly from you.
Chase typically sends your debt to collections when the account has reached 120-180 days of non-payment.
Regardless of who you’re dealing with, you may be able to settle your debt for a lower amount. After all, it’s in Chase’s best interests to accept a lower payment than to spend time pursuing you for the full amount that you may not be able to pay.
This is not a guarantee, however. If it’s clear that you can afford to pay most or all of the debt, for example, Chase or the collection agency probably won’t be willing to work with you. Still, settling is your best bet and can save you money as well as the hassle of dealing with the bank or collectors further.
In most circumstances, settling your debt will save you money. According to some data, roughly 95% of consumers save money by settling, even after paying attendant legal fees. In fact, the average debt settlement is 50% lower than the original amount, showing that it pays to pursue settlement whenever possible.
Unfortunately, there’s no way to avoid a hit on your credit score when you settle your debt. The major credit bureaus would rather see the words “paid in full” on your debts than “settled.”
But paying your debt in full isn’t always an option. Settling is a great way to eliminate your debt quickly, which then allows you to start repairing your credit.
Keep in mind that debt settlement will have less of an impact on your credit score than paying nothing at all. To learn more about debt settlement’s impact on credit, check out our guide: If I Settle with a Collection Agency, Will It Hurt My Credit?
If you’re buried by credit card debt with Chase, your best option is to settle as quickly as possible. Here’s how to settle your credit card debt quickly and reasonably.
Before you try to reach a settlement, here are a couple of things to consider.
Who are you actually dealing with? Are you dealing with Chase directly, or are you facing a debt collection agency? This is important, as it can influence the process, particularly when it comes to sending a legal answer and making a settlement offer.
You have legal rights that protect you from frequent, unwanted debt collection phone calls. For example, your creditor has a narrow window of time in which to attempt to collect the debt. This statute of limitations varies by state, but if your debt exists outside of this window, your creditor cannot target you for old debt.
Additionally, the Fair Debt Collection Practices Act (FDCPA) protects you from unsavory debt collection practices, such as improperly serving you or violating the statute of limitations.
If your debt is the result of identity theft, the Fair Credit Reporting Act (FCRA) should protect you and prevent you from being held responsible for that debt.
Knowing these rights will help you in the event that you get sued, and in some cases may prevent you from having to settle in the first place.
Once you have a better understanding of Follow these three steps to settle your debt with Chase:
Below, we’ll break down each step in detail. You can also watch this video to learn more:
If you’ve been sued for a debt with Chase, you must always act fast.
After being notified of a lawsuit, you’ll have to file an Answer document with the court as well as with Chase, Chase’s attorney, or the debt collection agency. You’ll have to respond before your state’s deadline or you will lose the case automatically.
The court may render a default judgment, which means that you’ll be responsible for the full amount of the debt. Once this judgment is rendered, you won’t have the same ability to negotiate a settlement.
File your Answer document even if you’ve been in contact with Chase or the debt collection agency. It’s not uncommon for debt collectors to reach a verbal settlement, then sneakily request a default judgment behind your back.
A formal Answer ensures that you’ve put your response into writing and communicated to the court that you intend to try to settle.
Once you’ve file an Answer to any pending lawsuits, you’re ready to reach out with a settlement offer.
Your first offer should be around 60% of your total debt. For example, if you owe $6,000, offer to pay $3,600 ($6,000 x 0.6).
Use the following template for your preliminary settlement offer via email:
“I see you’re suing me for $6,000 for [case number]. I don’t have that kind of money and I don’t agree with the amount. But I do have $3,600 that I can pay within 30 days to settle the debt in full. Let me know if you accept.”
Typically, companies like Chase (and the collection agencies they hire) will present a counteroffer, which you can accept or reject. You may go through several rounds of negotiations before reaching an agreement.
If you can’t afford to pay off as much as 60%, you still have options.
Chase will ask you about your budget, income, and expenses. If you can demonstrate financial hardship, like unexpected medical expenses, job loss, or a reduction of work hours, Chase will be more likely to settle for a smaller percentage of the debt.
The older the debt, the less questions you’ll be asked.
Insist on getting the final settlement agreement in writing to ensure that the debt collectors can’t renege on the agreement.
Typically, Chase or the collection agency will draft the settlement agreement for you. Be sure to review the document closely before signing. If you aren’t confident that you’ll be able to abide by the rules of the contract, don’t sign.
Only submit your settlement payment once you have this agreement in writing. Agencies like SoloSettle can assist in this process by helping you make secure payments without divulging your personal information.
Here is a debt settlement agreement example, for your reference.
Now, let’s take a look at an example of how to settle a credit card debt with Chase.
Example: Chris, who lives in Illinois, is being sued by Chase for an old credit card debt. He hasn’t made payments on the account for a few years, and the debt collectors hired by Chase won’t leave him alone about it. Chris uses SoloSuit to draft and file an Answer to the lawsuit. In his Answer document, Chris denies many of the claims and lists his affirmative defenses. Next, he uses SoloSettle to reach out to the Chase debt collectors and negotiate a debt settlement. He sends an initial offer of 50% of the debt, and after a few rounds of negotiating, they reach an agreement. Chris must pay off 70% of the debt over the next three months to abide by the settlement agreement, which is signed and filed into the case. The case gets dismissed, and Chris is in a better place to pay off his debt and move on with his life.
SoloSettle empowers you to negotiate and reach a debt settlement on your own.
SoloSettle, powered by SoloSuit, makes negotiating easy by providing a structured process with our settlement software, which sends and receives offers from collectors on your behalf. It will draft offers for you and protect you from the potential lies and bullying of debt collectors.
Most importantly, we’ve made sure all of the proper legal language is included to protect your rights when communicating with the creditor or debt collector. When a settlement agreement is reached, SoloSettle manages the settlement agreement documentation for you and protects your sensitive financial information from the collectors, preventing them from over-charging you.
Check out this review from a real SoloSettle customer:
“I'm very thankful for SoloSettle.. Having a third party negotiate the settlement was instrumental in resolving this case and saved me from two giant headaches: 1) I didn't have to deal with the plaintiff's lawyer and 2) I didn't have to go to court. I also love that the payment was processed through SoloSettle. I was nervous about sharing my personal financial data with the other side, but SoloSettle protected that for me. I hope I never get sued again, but if I do, I would use SoloSettle again in a heartbeat.
SoloSettle really saved me a ton of time and heartburn and kept me from having to be my own lawyer in court.”
The sooner you respond, the better your outcome will be. You’ll lift the debt from your shoulders and start working toward rebuilding your credit.
SoloSuit makes it easy to fight debt collectors.
You can use SoloSuit to respond to a debt lawsuit, to send letters to collectors, and even to settle a debt.
SoloSuit's Answer service is a step-by-step web-app that asks you all the necessary questions to complete your Answer. Upon completion, we'll have an attorney review your document and we'll file it for you.
Here's a list of guides for other states.
Being sued by a different debt collector? Were making guides on how to beat each one.
You can ask your questions on the SoloSuit forum and the community will help you out. Whether you need help now are are just look for support, we're here for you.
Is your credit card company suing you? Learn how you can beat each one.
Need more info on statutes of limitations? Read our 50-state guide.
Need help managing your finances? Check out these resources.
Out Debt Validation Letter is the best way to respond to a collection letter. Many debt collectors will simply give up after receiving it.
"Finding yourself on the wrong side of the law unexpectedly is kinda scary. I started researching on YouTube and found SoloSuit's channel. The videos were so helpful, easy to understand and encouraging. When I reached out to SoloSuit they were on it. Very professional, impeccably prompt. Thanks for the service!" - Heather