Do debt consolidation companies pay off credit cards that are already in the hands of a law firm/collector?
Chase filed a law suit against my husband for a delinquent credit card. He never had to go to court but they (the law firm) wanted $300/mt until the card was paid off. We’re still paying on it and it’s a huge budget buster! We only have a few other outstanding/low amount bills. I was wondering if debt consolidation companies would consolidate this Chase bill as well so we can get these people out of our lives!
waldenconnor on Sat, 20th Mar 2010 3:05 pm
The truth is: no.
You have 2 options: First, a loan (either a personal loan or refinance a mortgage if you are a home-owner) and you will not qualify based on credit in your situation.
Second, a debt resolution program like credit counseling or debt settlement. Neither would be ideal since you don’t have a lump sum contribution to settle and the account is already in a stipulated judgment status.
You are best off just calling the law firm and negotiating for a one time settlement directly with them. Assume it will be somewhere between 80%-100% of what you owe.
mister ed on Sat, 20th Mar 2010 3:53 pm
well you could borrow the money from some other source the source would make a check payable to chase and the other folks you owe money to — but do not fall in the trap a lot of folks do!!! the are out of debt except for this one big debt and than they take there credit cards and go on a spending junket!!!
blcohen529 on Sat, 20th Mar 2010 5:11 pm
You do not necessarily need a debt consolidation company to make deals with creditors. Contact Chase with a reasonable offer.
Tell them if they and a few others do not make respond favorably, you will file bankruptcy (threat not to carry out).