Attempting to Settle an Unsecured Debt with Chase Bank

I had a client who had two lines of credit with Chase Bank. The lines of credit had a balance in the hundreds of thousands of dollars and related to the client’s business. The client had never been late on the lines of credit and had paid on time for several years. The type of loan the client had with the bank was commercial.  There was a personal guarantee attached and Chase Bank had the ability to accelerate or call the loan.  Chase Bank chose to do so. The client asked for several extensions and modifications but the Bank kept attempting to call the loan and eventually demanded payment for the balance. The client had nearly a 800 credit score and was forced to default on the loan. The Bank went through the process of attempting to collect with ever increasing letters and calls to the client. I had thought the case would either end in bankruptcy or some sort of settlement with Chase Bank. The client had little to fear from the bankrupcty court but wanted to pay the bank what he could and so I kept attempting to settle the account. Eventually Chase Bank sent the account to a law firm that specializes in collecting and settling.  The client made numerous offers.  I was able to eventually settle the account for 25% of the loan balance and the client did not have to file for bankruptcy. The client was pleased to finally be through with the issue and said, “I just wanted them to let me keep paying on the account but they refused and said I had to pay in full.”

The actions of banks don’t always make sense.  This client ended up paying the creditor by negotiating the account but the client preferred that route to filing for bankruptcy.

Call my office to set up your consultation today.   Todd Courser 810-245-0813