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TJ, Esq.
TJ, Esq., Attorney
Category: Bankruptcy Law
Satisfied Customers: 11652
Experience:  JD, MBA
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Chase bank sent me a letter threatening to take action against

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Chase bank sent me a letter threatening to take action against me regarding 20k of unsecured credit card debt. I have 2 other cards with them totaling 50k. I have not wanted to file chapter 13 bankruptcy and had hoped to work with Chase directly but they won't work with me where I can afford a payment monthly. I spoke to Preferred Financial Services (debt settlement) company but I am concerned they won't be ablet to work with Chase in time and my wages may be garnished. Am I better off filing bankruptcy? I own my car and I know I will have to work with a trustee and that will add more to my bill and including attorney's fees will add to my debt.
Hello and thank you for allowing me the opportunity to assist you.

I would try to work with Chase until it definitely proves to be pointless. In other words, I'd wait until you're finally at the point of wages being garnished. Bankruptcy is a last resort option since it does more damage to your credit than any other single thing that you can do. Also, a bankruptcy will cause you more trouble in terms of getting a loan, an apartment, or a job than a situation where you're repaying part of what you owe via a settlement. Lenders are generally open to negotiations at all times, so you can still try to use Preferred Financial Services. Even if you're sued and lose, Chase would probably be open to a settlement at that time as well since a judgment does not guarantee payment by a long shot.

If you can never come to an agreement with Chase, and you're at the point of being garnished, then you may want to file for bankruptcy.

Have I satisfactorily addressed your concerns? If not, then please feel free to ask for clarification.

If the information that I provided is helpful, then please remember to click the green accept button so that I will receive credit and compensation for my time. Positive feedback is always appreciated as well. Thank you and good luck!

Customer: replied 5 years ago.
So if I recieve a summons to appear in court and lose I can still file bankruptcy?
Hi again.

Yes, you can file for bankruptcy at any time. Bankruptcy can discharge judgments just as it can discharge debts that have not yet been reduced to judgment. It's nice that you always have that in your back pocket ... and creditors like Chase know that. That's why I wrote that negotiations are always a any stage. If Chase is finally at the point of garnishing your wages, then you can file at that time and immediately stop all garnishments.

I hope that helps. Please remember to click "accept."
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