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How to Settle Credit Card Debt with Chase

Sarah Edwards | March 29, 2024

Sarah Edwards
Legal Expert
Sarah Edwards, BS

Sarah Edwards is a professional researcher and writer specializing in legal content. An Emerson College alumna, she holds a Bachelor of Science in Communication from the prestigious Boston institution.

Edited by Hannah Locklear

Hannah Locklear
Editor at SoloSuit
Hannah Locklear, BA

Hannah Locklear is SoloSuit’s Marketing and Impact Manager. With an educational background in Linguistics, Spanish, and International Development from Brigham Young University, Hannah has also worked as a legal support specialist for several years.

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?

Wrong.

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.

Settle debt with Chase.

You can negotiate debt settlement at any stage of the collections process. SoloSettle makes it easy.

Settle with SoloSettle

Will Chase settle for less than I owe?

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.

You can save money by settling with Chase

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.

Settling a debt with Chase will affect your credit

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?

How to settle credit card debt with Chase

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.

Know your audience

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.

Know your rights

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.

Settle a debt with Chase using these steps

Once you have a better understanding of Follow these three steps to settle your debt with Chase:

  1. Respond to any pending lawsuits against Chase.
  2. Send a settlement offer to kickstart negotiations.
  3. Get the settlement agreement in writing.

Below, we’ll break down each step in detail. You can also watch this video to learn more:

Follow these three steps to settle a debt with Chase

Step 1: Respond to any pending lawsuits against Chase

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.

Draft and file your Answer online in minutes, no matter where you live.

Step 2: Send a settlement offer to kickstart negotiations

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.

SoloSettle handles the settlement negotiation process for you.

Step 3: Get the settlement agreement in writing

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.


Settle your debt with SoloSettle’s help

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.

Settle your credit card debt with Chase today.

Settle with SoloSettle

Make an Offer

What is SoloSuit?

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.

>>Read the FastCompany article: Debt Lawsuits Are Complicated: This Website Makes Them Simpler To Navigate

>>Read the NPR story on SoloSuit. (We can help you in all 50 states.)

Negotiate a Chase credit card settlement

Hiring a debt settlement attorney can be expensive. Luckily, you don't need an attorney to be able to settle your debt.

We wanted to learn more about how to negotiate Chase credit card settlement yourself, so we asked a debt lawyer to share some tips and tricks on how to settle with creditors and debt collectors. Here's what attorney, John Skiba, had to say:

  • Avoid threatening bankruptcy if you don't mean it, as this empty threat is often ineffective.
  • Paint a picture of your financial hardship to the creditors or their lawyers.
  • Show proof of your limited ability to pay, like being on Social Security, facing multiple debts, or having wage garnishments.
  • Make a realistic offer, considering they will likely counteroffer.
  • For junk debt buyers, settlements of 10-35% of the total debt are typical, while original creditors may accept 50-75%.
  • If you propose a payment plan, ensure it's realistic for your budget.
  • Be truthful about your financial situation, as creditors often have detailed information about you.

Watch this video for the full interview with a debt lawyer on debt settlement tips and tricks and to learn more about how to negotiate debt settlement on your own:

How to Answer a Summons for debt collection in all 50 states

Here's a list of guides on how to respond to a debt collection lawsuit in each state:

The Ultimate 50 State Guide

Guides on how to resolve debt with every debt collector

Are you being sued by a debt collector? We’re making guides on how to resolve debt with each one.

Resolve your debt with your creditor

Some creditors, banks, and lenders have an internal collections department. If they come after you for a debt, Solosuit can still help you respond and resolve the debt. Here’s a list of guides on how to resolve debt with different creditors.

Settle your medical debt

Having a health challenge is stressful, but dealing medical debt on top of it is overwhelming. Here are some resources on how to manage medical debt.

Guides on arbitration

If the thought of going to court stresses you out, you’re not alone. Many Americans who are sued for credit card debt utilize a Motion to Compel Arbitration to push their case out of court and into arbitration.

Below are some resources on how to use an arbitration clause to your advantage and win a debt lawsuit.

Stop calls from debt collectors

Do you keep getting calls from an unknown number, only to realize that it’s a debt collector on the other line? If you’ve been called by any of the following numbers, chances are you have collectors coming after you, and we’ll tell you how to stop them.

Federal debt collection laws can protect you

Knowing your rights makes it easier to stand up for your rights. Below, we’ve compiled all our articles on federal debt collection laws that protect you from unfair practices.

Get debt relief in your state

We’ve created a specialized guide on how to find debt relief in all 50 states, complete with steps to take to find relief, state-specific resources, and more.

Debt collection laws in all 50 states

Debt collection laws vary by state, so we have compiled a guide to each state’s debt collection laws to make it easier for you to stand up for your rights—no matter where you live.

Statute of limitations on debt state guides

Like all debt collection laws, the statute of limitations on debt varies by state. So, we wrote a guide on each state’s statutes. Check it out below.

Statute of Limitations on Debt Collection by State (Best Guide)

Check the status of your court case

Don’t have time to go to your local courthouse to check the status of your case? We’ve created a guide on how to check the status of your case in every state, complete with online search tools and court directories.

How to stop wage garnishment in your state

Forgot to respond to your debt lawsuit? The judge may have ordered a default judgment against you, and with a default judgment, debt collectors can garnish your wages. Here are our guides on how to stop wage garnishment in all 50 states.

Other wage garnishment resources

How to settle a debt in your state

Debt settlement is one of the most effective ways to resolve a debt and save money. We’ve created a guide on how to settle your debt in all 50 states. Find out how to settle in your state with a simple click and explore other debt settlement resources below.

How to settle with every debt collector

Not sure how to negotiate a debt settlement with a debt collector? We are creating guides to help you know how to start the settlement conversation and increase your chances of coming to an agreement with every debt collector.

Other debt settlement resources

Personal loan and debt relief reviews

We give a factual review of the following debt consolidation, debt settlement, and loan organizations and companies to help you make an informed decision before you take on a debt.

How to repair and improve your credit score

Debt has a big impact on your credit. Below is a list of guides on how to repair and improve your credit, even while managing major debt.

How to resolve student loan debt

Struggling with student debt? SoloSuit’s got you covered. Below are resources on handling student loan debt.

Civil law legal definitions

You can represent yourself in court. Save yourself the time and cost of finding an attorney, and use the following resources to understand legal definitions better and how they may apply to your case.

Get answers to these FAQs on debt collection

How-to debt guides

Learn more with these additional debt resources

Not sued yet?

Use our Debt Validation Letter.


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