The only way to determine your options is to have a consultation with a qualified bankruptcy attorney. Bankruptcy is one option, but if your total debts are $2,000 it likely wouldn't make sense. You need to explore all your options and a bankruptcy attorney can help guide you on that.

Answer Applies to: California
Replied: 7/30/2012

Disclaimer: The response above does not form an attorney-client relationship. This answer may or may not apply to you and should not be relied upon as legal advice. LawQA does not make any representation as to the expertise or qualifications of this attorney. This attorney may or may not be admitted to state bar of your state.

Filing Bankruptcy is an option, but not one to be taken lightly. It will depend on your income and how much total debt you have. You can also file an answer to the complaint offering breach of contract on Chase's part as a defense, if they indeed offered to reinstate your credit card and then failed to do so upon receipt of your payment. You should, however, have that in writing to make a valid defense out of it.

Answer Applies to: California
Replied: 7/30/2012

Disclaimer: The response above does not form an attorney-client relationship. This answer may or may not apply to you and should not be relied upon as legal advice. LawQA does not make any representation as to the expertise or qualifications of this attorney. This attorney may or may not be admitted to state bar of your state.

Bankruptcy would discharge the debt, but if that is your only debt ($1600), it would cost you approximately that same amount to file a chapter 7. If you have other non-priority, unsecured debt, then bankruptcy could benefit you and stop the civil lawsuit. If you don't have other unsecured debt, then, I believe, your best bet is to try to settle the debt or pay the amount. But you must get the signed settlement agreement prior to or concurrent with your payment.

Answer Applies to: California
Replied: 7/30/2012

Disclaimer: The response above does not form an attorney-client relationship. This answer may or may not apply to you and should not be relied upon as legal advice. LawQA does not make any representation as to the expertise or qualifications of this attorney. This attorney may or may not be admitted to state bar of your state.

Hopefully the agreement you had was in writing. If not you will need to file a response to claim that no debt is owed because of the agreement.

Answer Applies to: California
Replied: 7/30/2012

Disclaimer: The response above does not form an attorney-client relationship. This answer may or may not apply to you and should not be relied upon as legal advice. LawQA does not make any representation as to the expertise or qualifications of this attorney. This attorney may or may not be admitted to state bar of your state.

You need to answer the lawsuit, in writing, and tell the court what you told me. Get some help if you don't know how to do that so that your rights will be protected. Once you have done that, call the attorney and try to work out a deal. They are going to be on a total one-way-street of collect, collect, collect and it will be very hard for you to get their attention. They will not voluntarily go away without some payment and you may want to just go to court. What they are counting on is that you won't know what you are doing and therefore will do nothing and they will win by default. The way to win is to keep pushing back and keep saying "no" and keep responding to everything they throw at you paperworkwise and make it clear to them that it is going to cost them bigtime to win and they may as well settle. Without counsel that will be quite hard, but it can be done. You can forget about getting another credit card from these people ever.

Answer Applies to: California
Replied: 7/30/2012

Disclaimer: The response above does not form an attorney-client relationship. This answer may or may not apply to you and should not be relied upon as legal advice. LawQA does not make any representation as to the expertise or qualifications of this attorney. This attorney may or may not be admitted to state bar of your state.

Pay the debt, respond to the lawsuit or file bankruptcy if you cannot meet your credit card or other debts.

Answer Applies to: California
Replied: 7/30/2012

Disclaimer: The response above does not form an attorney-client relationship. This answer may or may not apply to you and should not be relied upon as legal advice. LawQA does not make any representation as to the expertise or qualifications of this attorney. This attorney may or may not be admitted to state bar of your state.

You have 30 days to respond. You can defend by providing proof to the court of your deal. If you have emails or letters. You would have to file an answer in the court where you are being sued and request a trial. If the judge believes you chase should lose. I am not sure if you are asking about a bankruptcy, but this is not enough debt alone to file for bankruptcy.

Answer Applies to: California
Replied: 7/30/2012

Disclaimer: The response above does not form an attorney-client relationship. This answer may or may not apply to you and should not be relied upon as legal advice. LawQA does not make any representation as to the expertise or qualifications of this attorney. This attorney may or may not be admitted to state bar of your state.