PostHeaderIcon 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!

3 Responses to “Do debt consolidation companies pay off credit cards that are already in the hands of a law firm/collector?”

  • blcohen529 says:

    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).

  • mister ed says:

    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!!!

  • waldenconnor says:

    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.

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