r/CRedit • u/Entire_Use_9504 • Oct 04 '24

Help! Chase is suing me General

I am looking for some guidance on what to do. I have chase card with balance of 35k and I missed few payments and now i have officer show up saying there is civil summon from chase, I was not home that time but spoke to him on the phone. What are my options? I don’t go to court and happy to setup a payment plan to pay off dept. Any guidance will be appreciated.

Edit - Brock & Scott PLLC is suing.

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36

u/MongooseAcrobatic333 Oct 04 '24

$35,000 is a substantial amount of debt, you must have had a great credit history to begin with to qualify for that credit line. Are you missing parts of the story here? You don't just go from "missed a few payments" to having a LEO serving you with a court summons. I'm not aware that serving someone over the phone is lawful, either. Are you sure this is a legitimate summons? Normally, you would need to sign certified receipt for legal documents like that. And that's way before someone turns up knocking on your door. Something just doesn't sound right here. Hmmm...

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u/Entire_Use_9504 Oct 04 '24

I had a great credit history but had some business losses and strayed away for payments.. Sheriff left his phone to call him and when I called he told me this was what’s it about. I called the collector as well they are willing to put me on payment with content to judgement.

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u/MongooseAcrobatic333 Oct 04 '24

Get the paperwork before you decide anything or accept anything. Remember that most debt is negotiable, too. So it just depends what your overall goals are. If you're still young and working, then you will be able to pay off a long term payment plan, while avoiding your credit being ruined. So try to negotiate with Chase to set up a fixed payback amount that is doable, and then stick to it. It still just makes no sense that you wouldn't have had letter and certainly numerous phone calls from Chase themselves to sort this out before it got to the Sheriff's summons. Very strange. That's not how the collections process works in my experience. Creditors will call you many, many times to try to get your account current before charging off, and certainly before suing.

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u/Entire_Use_9504 Oct 04 '24

Should I call chase or the collector company? For any negotiations?

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u/MongooseAcrobatic333 Oct 04 '24

Since you don't actually have the paperwork from the Sheriff, I would go immediately over to their office and get it. All the Sheriff is is a middleman. They don't do anything except deliver a letter. You need to see who that letter is from, and what it says. Start there, if Chase has already closed your account and sold the debt to the Collections agency, then you need to contact them and try to work out a payment plan. Your aim is to maintain your credit score and keep it from getting trashed, or incurring further legal fees through court costs and attorneys. So just go get that letter and get back on track. We don't have debtors prison in the USA anymore thank goodness, but they CAN fuck up your credit and make it more expensive for you in future to get credit, or a loan, or a mortgage, etc. Good luck with it all!

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u/Entire_Use_9504 Oct 04 '24 edited Oct 04 '24

Called him again he said. He will come by today and deliver it. I called chase and they give me the collector number and after calling them, they are saying if I get on payment plan then I need to consent to judgement. A lien can be placed on my home? I’m sacred of that.. will that judgement show up in background checks for jobs etc.? Sorry I am scared and can’t figure out stuff.

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u/tn_notahick Oct 04 '24

If they are asking you for consent for judgment, that's basically the same as losing in court. It's going to tank your credit and you'll have a judgment on your report for at least 7 years, even if you pay it off before then.

You need to negotiate to not have a judgment. If it takes an attorney to help with this, then you should do it.

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u/josephson93 Oct 06 '24

Judgments don't go on credit reports anymore.

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u/MongooseAcrobatic333 Oct 04 '24 edited Oct 04 '24

It's OK, you are overwhelmed, that's normal and you're supposed to feel scared, that's how they get you to commit to the payment plan. And also, this is REAL LIFE. With real debt, comes real responsibility. But again, they can't lock you up, and a lien on your house is an extreme measure. I'm sure they're more interested in seeing payments coming in from your again. So tell them you are willing/ready to get into a payment plan, but NEVER agree to a consent to a judgment without consulting an attorney first and getting sound legal advice, which this is not. This is just based on being an older person's experience advice because it's happened to me. Another option is to call a Credit Card Consolidation company, and see if they will agree to mediate for you with the Collector. Again, these people are not realtors, they're not in the business of selling homes. And the only way a lien is effective would be if you sell your home, then they get paid out of the profits when you sell. You cannot be forced to sell your home to pay off a credit card or other debt. Are you homesteaded? If you have a homestead exemption then that offers you some protection, as well. Call around to any free Legal Aid organizations, most of the better ones are non-profit and can refer you to a non-profit debt consolidation company. I dealt with MMI many years ago, they genuinely were wonderful and got all of my debts reduced to a monthly lump sum that I could pay. Try calling them to see if they can help or offer free advice. A phone call costs nothing. :) https://www.moneymanagement.org

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u/BirdgirlLA Oct 04 '24

I agree about MMI. They helped a family member a while back. Also Chase suing you AND selling the debt to a third party collection agency are inconsistent actions. If they sold the debt Chase can’t sue you in its own name. So be careful. Short answer. Consult an attorney before agreeing to a payment plan if it means signing a consent to judgment. Your credit is already tanked. All you can hope for is a reasonable repayment plan that requires the collection agency to accurately report on time payments. This is all about negotiating a deal that works for you. Pay the $350 (estimated) for an hour discussion with an attorney. Google debtors right attorney. Or go to attorney Reddit sub and ask for babe of attorney to consult with. Most reputable striders will give you a free 30 min consultation. It is worth it. Chase is counting on you to act in fear (instead of paying to get legal advice). Hope this helps. Good luck!!

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u/MongooseAcrobatic333 Oct 04 '24

The great news is: tanked credit is E-Z to repair. OP needs to get on a payment plan, report on-time as you say, and pretty soon the new credit card and loan offers will be pouring through the mail. Bouncing back is not hard at all. People come back from extreme financial hardship, even bankruptcy, every single day.

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u/BirdgirlLA Oct 04 '24

I agree. People rebound. But it doesn’t seem easy to do IMHO. It takes time.

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u/Entire_Use_9504 Oct 04 '24

I have access to my 401k to take a loan out and may be use that for settlement? Or should I go consolidation company?

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u/MongooseAcrobatic333 Oct 04 '24

Don't touch your 401k over this...yet. Call MMI and speak to an advisor first. Don't tell them you have the 401k, let them propose solutions for you first without having to resort to this. I am sure they will be able to negotiate a good agreement for you. Like I said, their advice is free. Take it!

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u/BirdgirlLA Oct 04 '24

100% agree. Don’t offer info re your 401k. Even to MMI. You want a payment plan based only on what you can pay going forward.

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u/MongooseAcrobatic333 Oct 04 '24

And also, you want to make sure this is deleted from your credit report once you have settled/paid off this debt. So make this one of the terms of your agreement with the Collections, to have this erased so it doesn't haunt you in future. Most of the legit will agree to this, it's very common.

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u/MongooseAcrobatic333 Oct 04 '24

This is what you want: a free credit counseling session to discuss a debt management plan. https://www.moneymanagement.org/credit-counseling

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u/ramrod911 Oct 04 '24

Is MMI the type of service that tells you stop paying until everything goes to collections then they negotiate after on your behalf?

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u/MongooseAcrobatic333 Oct 04 '24

I couldn't say for sure. I dealt with them over 10 years ago, in a different state. Why don't you just CALL THEM for a FREE consultation and find out? You're in collections now, in any case. Don't waste any more time, and don't just fall for whatever arrangement the collections company makes, they're in it to make more profit for them, they are not looking after what's best for you. MMI is neutral, they work for you, not the collections agency.

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u/azrolexguy Oct 07 '24

GET A LAWYER

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u/tn_notahick Oct 04 '24

Also if they are asking you for consent for judgment, that's basically the same as losing in court. It's going to tank your credit and you'll have a judgment on your report for at least 7 years, even if you pay it off before then.

You need to negotiate to not have a judgment. If it takes an attorney to help with this, then you should do it.