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How to Settle Credit Card Debt with Chase

Written by Sarah Edwards · Edited by Hannah Locklear
Last updated on May 21, 2026

Summary: Chase is one of the easiest creditors to settle a debt with. If you’ve been sued for credit card debt with Chase, you must file an Answer to the lawsuit. Then, you can reach out to negotiate a debt settlement and get the agreement in writing when reached. SoloSettle can help you settle your debt on your own, putting you in a better financial position to pay off other debts and improve your credit.

Credit card debt can haunt you. So can debt collectors. But if you try not to think about it, the problem will eventually go away, right?

Wrong.

Unfortunately, if you’ve been receiving phone calls or letters from Chase Bank, or someone claiming to represent them, you’ll need to formulate a game plan before things get worse.

Your best bet is to settle your debt for a lower amount, which can save you money as well as prevent you from going to court. Here’s how the process works.


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Will Chase settle for less than I owe?

Ideally, you’ll want to settle your debt with Chase directly. But if you’ve already been receiving phone calls from a debt collector, it’s likely that Chase has sold your debt to a collection agency that hopes to recoup the losses directly from you.

Chase typically sends your debt to collections when the account has reached 120-180 days of non-payment.

Regardless of who you’re dealing with, you may be able to settle your debt for a lower amount. After all, it’s in Chase’s best interests to accept a lower payment than to spend time pursuing you for the full amount that you may not be able to pay.

This is not a guarantee, however. If it’s clear that you can afford to pay most or all of the debt, for example, Chase or the collection agency probably won’t be willing to work with you. Still, settling is your best bet and can save you money as well as the hassle of dealing with the bank or collectors further.

You can save money by settling with Chase

In most circumstances, settling your debt will save you money. According to some data, roughly 95% of consumers save money by settling, even after paying attendant legal fees. In fact, the average debt settlement is 50% lower than the original amount, showing that it pays to pursue settlement whenever possible.

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Credit card payment estimated at 24.99% APR over 60 months. Settlement estimate based on industry averages. Actual results vary.

Settling a debt with Chase will affect your credit

Unfortunately, there’s no way to avoid a hit on your credit score when you settle your debt. The major credit bureaus would rather see the words “paid in full” on your debts than “settled.”

But paying your debt in full isn’t always an option. Settling is a great way to eliminate your debt quickly, which then allows you to start repairing your credit.

Keep in mind that debt settlement will have less of an impact on your credit score than paying nothing at all. To learn more about debt settlement’s impact on credit, check out our guide: If I Settle with a Collection Agency, Will It Hurt My Credit?

How to settle credit card debt with Chase

If you’re buried by credit card debt with Chase, your best option is to settle as quickly as possible. Here’s how to settle your credit card debt quickly and reasonably.

Before you try to reach a settlement, here are a couple of things to consider.

Know your audience

Who are you actually dealing with? Are you dealing with Chase directly, or are you facing a debt collection agency? This is important, as it can influence the process, particularly when it comes to sending a legal answer and making a settlement offer.

Know your rights

You have legal rights that protect you from frequent, unwanted debt collection phone calls. For example, your creditor has a narrow window of time in which to attempt to collect the debt. This statute of limitations varies by state, but if your debt exists outside of this window, your creditor cannot target you for old debt.

Additionally, the Fair Debt Collection Practices Act (FDCPA) protects you from unsavory debt collection practices, such as improperly serving you or violating the statute of limitations.

If your debt is the result of identity theft, the Fair Credit Reporting Act (FCRA) should protect you and prevent you from being held responsible for that debt.

Knowing these rights will help you in the event that you get sued, and in some cases may prevent you from having to settle in the first place.

Settle a debt with Chase using these steps

Once you have a better understanding of Follow these three steps to settle your debt with Chase:

  1. Respond to any pending lawsuits against Chase.
  2. Send a settlement offer to kickstart negotiations.
  3. Get the settlement agreement in writing.

Below, we’ll break down each step in detail. You can also watch this video to learn more:

Follow these three steps to settle a debt with Chase

Step 1: Respond to any pending lawsuits against Chase

If you’ve been sued for a debt with Chase, you must always act fast.

After being notified of a lawsuit, you’ll have to file an Answer document with the court as well as with Chase, Chase’s attorney, or the debt collection agency. You’ll have to respond before your state’s deadline or you will lose the case automatically.

The court may render a default judgment, which means that you’ll be responsible for the full amount of the debt. Once this judgment is rendered, you won’t have the same ability to negotiate a settlement.

File your Answer document even if you’ve been in contact with Chase or the debt collection agency. It’s not uncommon for debt collectors to reach a verbal settlement, then sneakily request a default judgment behind your back.

A formal Answer ensures that you’ve put your response into writing and communicated to the court that you intend to try to settle.

Draft and file your Answer online in minutes, no matter where you live.

Step 2: Send a settlement offer to kickstart negotiations

Once you’ve file an Answer to any pending lawsuits, you’re ready to reach out with a settlement offer.

Your first offer should be around 60% of your total debt. For example, if you owe $6,000, offer to pay $3,600 ($6,000 x 0.6).

Use the following template for your preliminary settlement offer via email:

“I see you’re suing me for $6,000 for [case number]. I don’t have that kind of money and I don’t agree with the amount. But I do have $3,600 that I can pay within 30 days to settle the debt in full. Let me know if you accept.”

Typically, companies like Chase (and the collection agencies they hire) will present a counteroffer, which you can accept or reject. You may go through several rounds of negotiations before reaching an agreement.

If you can’t afford to pay off as much as 60%, you still have options.

Chase will ask you about your budget, income, and expenses. If you can demonstrate financial hardship, like unexpected medical expenses, job loss, or a reduction of work hours, Chase will be more likely to settle for a smaller percentage of the debt.

The older the debt, the less questions you’ll be asked.

SoloSettle handles the settlement negotiation process for you.

Step 3: Get the settlement agreement in writing

Insist on getting the final settlement agreement in writing to ensure that the debt collectors can’t renege on the agreement.

Typically, Chase or the collection agency will draft the settlement agreement for you. Be sure to review the document closely before signing. If you aren’t confident that you’ll be able to abide by the rules of the contract, don’t sign.

Only submit your settlement payment once you have this agreement in writing. Agencies like SoloSettle can assist in this process by helping you make secure payments without divulging your personal information.

Here is a debt settlement agreement example, for your reference.

Now, let’s take a look at an example of how to settle a credit card debt with Chase.

Example: Chris, who lives in Illinois, is being sued by Chase for an old credit card debt. He hasn’t made payments on the account for a few years, and the debt collectors hired by Chase won’t leave him alone about it. Chris uses SoloSuit to draft and file an Answer to the lawsuit. In his Answer document, Chris denies many of the claims and lists his affirmative defenses. Next, he uses SoloSettle to reach out to the Chase debt collectors and negotiate a debt settlement. He sends an initial offer of 50% of the debt, and after a few rounds of negotiating, they reach an agreement. Chris must pay off 70% of the debt over the next three months to abide by the settlement agreement, which is signed and filed into the case. The case gets dismissed, and Chris is in a better place to pay off his debt and move on with his life.


Settle your debt with SoloSettle’s help

SoloSettle empowers you to negotiate and reach a debt settlement on your own.

SoloSettle, powered by SoloSuit, makes negotiating easy by providing a structured process with our settlement software, which sends and receives offers from collectors on your behalf. It will draft offers for you and protect you from the potential lies and bullying of debt collectors.

Most importantly, we’ve made sure all of the proper legal language is included to protect your rights when communicating with the creditor or debt collector. When a settlement agreement is reached, SoloSettle manages the settlement agreement documentation for you and protects your sensitive financial information from the collectors, preventing them from over-charging you.

Settle your credit card debt with Chase today.


What is Solo?

Solo makes it easy to resolve debt with debt collectors.

You can use SoloSuit to respond to a debt lawsuit, to send letters to collectors, and even to settle a debt. SoloSuit's Answer service is a step-by-step web-app that asks you all the necessary questions to complete your Answer. Upon completion, we'll have an attorney review your document and we'll file it for you.

SoloSettle can help you contact your debt collector or creditor and negotiate the debt to settle for less, all online. It simplifies and streamlines the process to settling your debt.

No matter where you find yourself in the debt collection process, Solo is here to help you resolve your debt.

>>Read the FastCompany article: Debt Lawsuits Are Complicated: This Website Makes Them Simpler To Navigate

>>Read the NPR story on SoloSuit. (We can help you in all 50 states.)

Negotiate a Chase credit card settlement

Hiring a debt settlement attorney can be expensive. Luckily, you don't need an attorney to be able to settle your debt.

We wanted to learn more about how to negotiate Chase credit card settlement yourself, so we asked a debt lawyer to share some tips and tricks on how to settle with creditors and debt collectors. Here's what attorney, John Skiba, had to say:

  • Avoid threatening bankruptcy if you don't mean it, as this empty threat is often ineffective.
  • Paint a picture of your financial hardship to the creditors or their lawyers.
  • Show proof of your limited ability to pay, like being on Social Security, facing multiple debts, or having wage garnishments.
  • Make a realistic offer, considering they will likely counteroffer.
  • For junk debt buyers, settlements of 10-35% of the total debt are typical, while original creditors may accept 50-75%.
  • If you propose a payment plan, ensure it's realistic for your budget.
  • Be truthful about your financial situation, as creditors often have detailed information about you.

Watch this video for the full interview with a debt lawyer on debt settlement tips and tricks and to learn more about how to negotiate debt settlement on your own:



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Frequently asked questions about Chase credit card debt

Does Chase sue for credit card debt?

Yes, Chase regularly sues customers for unpaid credit card debt, typically once an account reaches 180 days of non-payment and has been charged off. Chase may file the lawsuit directly through its in-house collections team or hire third-party law firms to file on its behalf. The lawsuit will name JPMorgan Chase Bank, N.A. or a debt buyer if the account has been sold.

When does Chase send my credit card debt to collections?

Chase typically sends overdue credit card debt to collections after 120 to 180 days of non-payment. At 180 days, federal regulations require Chase to charge off the account, which removes it from active accounts and either transfers it to internal collections or sells it to a third-party debt buyer such as Portfolio Recovery Associates, Midland Funding, or Cavalry SPV.

Will Chase settle credit card debt for less than I owe?

Yes, Chase frequently settles credit card debt for less than the full balance to avoid the cost and uncertainty of a lawsuit. Settling is in Chase's financial interest because pursuing the full amount through litigation often costs more than accepting a partial payment. The likelihood of settlement increases with the age of the debt and your documented financial hardship.

What percentage will Chase accept as a settlement?

Chase, as an original creditor, typically accepts settlement offers between 50% and 75% of the original credit card balance. If your debt has been sold to a third-party debt buyer, settlement offers as low as 10% to 35% may be accepted. Older charged-off accounts settle for lower percentages because debt buyers purchased them for pennies on the dollar.

What is the Chase Hardship Program?

The Chase Hardship Program is a temporary debt relief option for cardholders facing documented financial hardship such as job loss, medical emergencies, or military deployment. Approved participants may receive reduced interest rates, lowered minimum payments, or paused payments for a set period, typically 3 to 12 months. The program does not forgive the principal balance owed on the account.

How do I apply for Chase's Hardship Program?

To apply for the Chase Hardship Program, call Chase customer service at 1-800-432-3117 and request to speak with the financial hardship or assistance team. You will need to document your hardship with proof such as termination paperwork, medical bills, or military orders. Chase reviews applications case-by-case and does not guarantee approval for every applicant.

How do I contact Chase about my credit card debt?

Chase customer service can be reached at 1-800-432-3117. For debt-related issues specifically, request a transfer to the financial assistance or collections department. If your account has already been charged off and sold, contact the listed debt buyer instead, since Chase no longer owns the debt. Always communicate in writing for settlement negotiations to keep a paper trail.

Will Chase forgive credit card debt?

Chase does not typically forgive credit card debt outright, but it does negotiate settlements that effectively reduce the balance owed by 25% to 50% in many cases. The Chase Hardship Program offers temporary relief through reduced interest rates and lowered payments, but the principal balance remains owed. Forgiven debt amounts above $600 may be reported as taxable income on Form 1099-C.

Does Chase sell credit card debt to collection agencies?

Yes, Chase regularly sells charged-off credit card debt to third-party debt buyers including Portfolio Recovery Associates, Cavalry SPV, Midland Funding, and LVNV Funding. Chase typically sells accounts after 180 days of non-payment for pennies on the dollar. Once sold, the debt buyer becomes the legal owner of the debt and is the party authorized to collect or sue.

What should I do if Chase is suing me for credit card debt?

If Chase has filed a lawsuit against you, file a written Answer with the court before your state's deadline, which is typically 14 to 30 days from the date of service. In your Answer, respond to each numbered claim, raise affirmative defenses such as expired statute of limitations, and serve a copy on Chase or its attorney to prevent a default judgment.

What is the statute of limitations on Chase credit card debt?

The statute of limitations on Chase credit card debt varies by state, ranging from 3 to 10 years, with most states between 4 and 6 years. The clock begins on the date of your last payment or account activity. Once expired, Chase or any debt buyer who purchased the debt can be barred from suing to collect, though they may still attempt to.

How does settling credit card debt with Chase affect my credit score?

Settling credit card debt with Chase will negatively impact your credit score because credit bureaus prefer to see accounts marked "paid in full" rather than "settled for less than full balance." However, settlement causes less damage than continued non-payment or a default judgment. Settled accounts remain on your credit report for 7 years from the original delinquency date.

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