It is possible to get out of your “mess”, but it won’t be without some pain. You need a financial shield in place to protect yourself from the impact of creditor lawsuits once you stop paying them. This will put you in control and allow for a negotiated settlement of as little as 10 cents on the dollar. Further you’ll demand no 1099 on any forgiven debt and your account listed as paid in full. Most creditors are willing to accept this in lieu of nothing. Of course your credit will suffer, but it can be repaired and rebuilt.
Thanks for the responses. We contacted Chase with a 50% offer, but they said they wanted 85%. I believe we will counter with 65% and hope they take it. Although the original debt was with Chase 4 years ago, when the int rate went up I switched it to Advanta; and when that one went up I switched back to Chase (last May). So, they said they want more of the principle paid. We can’t sell the business until this is cleared, so we may lose the buyers. I really don’t want to file bankruptcy for this business.
Right now, I called a few of our other cc cos and lowered the int rate, albeit only 2%, but they said I can call back in a couple of months to see if they will lower it again. I’m going to contact a few more and see what they say.
I really don’t want to not pay my cc bills and have them calling me, so I will have to work to pay them back as best I can. However, we may have to go to a credit counselor and have them deal with lowering the rates even more. We were unable to achieve a settlement with Chase as we had hoped. I haven’t paid last month’s statement, and, of course, the rate went up and now the payments are even higher. They called a couple of weeks ago, and I said I would see what we had in the bank. Business is terrible, and now my husband is having health issues. If they had accepted our offer, he probably wouldn’t be having these problems.
Can someone please explain what is involved in this? …”You need a financial shield in place to protect yourself from the impact of creditor lawsuits once you stop paying them”. Will they actually sue us? Or, offer a settlement? They are now calling multiple times a day, however, I’m not taking the calls. They actually called 5 times on July 4th!!!
Call the executive offices of chase at 1800chase99 and see what they will do for you or file a complaint with the better business bureau.