Capital One Suing – Negotiate with CapOne or Contact Attorney?
Hello, I have just received a letter from an attorney in the state of Michigan, I now live in Florida, that says a lawsuit is being filed against me in district court for 1200$ owed to capital one. I also have 3 other capital one credit cards that I have also not been able to pay for a year that will probably be going to a lawsuit the same as this one soon.
Can I still contact Capital One directly to settle for a lesser amount and make payments to them, or now that the lawsuit has been filed (if it has) must I negotiate with the attorney on that debt, but negotiate with Capital One for the other 3 credit cards?
I have been considering bankruptcy, but if I can get on some payment plan for the debts I may be able to pay them off eventually if they are willing to do this.
What do I do about the one I just got the letter saying they were filing the lawsuit against me, and I would be receiving a summons soon? And also what should I do about the other 3 credit card bills (totaling about 3000$) as well as a few others I have that are not in a lawsuit yet, but will be. I truly appreciate any help and look forward to your response. Thank you.
Capital One lawsuit, can I still negotiate with Capital One, or must I contact their attorney? Also, what to do about the other debts?
—Tracy
Short answer
Once Capital One has sent the account to a law firm, you resolve it with that attorney debt collector, not with Capital One. A lump sum payoff is possible, and if you cannot reach an amount you can fund, the settlement can often be stretched over a few payments.
Key points on this page
- A Capital One debt placed with a law firm for collection means settling with the attorney debt collector.
- You can arrange a lump sum payoff, spread a settlement over a few payments, or set up monthly payments you can afford until the balance is paid off.
- Never commit to a payment plan you are not confident you can complete.
- Around 50 percent of the current balance is where Capital One settlements often land. Other accounts you hold may settle for less than Capital One.
- The state you live in matters. Florida has strong consumer protection laws that prevent wage garnishment, so if you cannot afford much right now, it may be better not to commit to anything until your situation stabilizes.
- Do not assume you will be sued on every Capital One account, or on any of the others.
Who is the attorney firm contacting you about your Capital One account from Michigan? Did you receive the letter direct at your Florida address, or was it forwarded to you after having been sent to an address in Michigan?
Capital One Debt Sent to a Law Firm for Collection Means Settling with the Attorney Debt Collector
It is certainly possible to contact the attorney and arrange for a lump sum pay off. If you don’t reach a dollar amount you can fund, it is possible to stretch the settlement out over a few payments. Never commit to a payment plan you are not confident you can complete.
Monthly payment arrangements you can afford until the balance is paid off are also an option.
How long have you lived in Florida? I ask because FL has some pretty strong consumer protection laws that would prevent your wages being garnished. If you cannot afford to do much right now, perhaps you should not commit to anything until your situation stabilizes.
Resolve Your Past Due Capital One Accounts
Can you come up with about half of the current balances? Fifty percent may be where you land on the Capital One accounts after negotiating your settlement. Your other accounts you mentioned having may settle for less than Capital One.
Your targets for savings in settlement, and timing your offers based on your available money, is something of a science. It can depend on who has the accounts, how long they have had them and a few other things.
How long has it been since you last made a payment on these debts? Your answer may help to determine your next step.
I would not assume that you will be sued on all Capital One accounts, or any others. If you would like to discuss your concerns and your options to resolve the debts one on one, you can call me at 800-939-8357, choose option 2. You can also submit my consult request form. Consults are free, so do not hesitate to take me up on the offer.
You can also post answers to my above questions in a comment reply below. I will respond with more details once I have some of that information.
Anyone looking to resolve Capital One debt that is in collections is welcome to post questions and concerns below for feedback.
About Michael BoveeMichael started CRN in 2004 with a mission to provide people in need with detailed debt and credit help and education. Michael has participated as an expert panelist in federal consumer protection rule making, collaborated on state law changes governing debt consolidation, has worked as an expert witness in court matters related to the debt relief industry. He is available to speak with you about your financial struggle and helps people resolve their debt problems daily.
Thank you Michael for all of the help and support you provide to individuals on a constant & consistent basis.
My fiancé has not lived at her mothers house for almost two years. Her mother received some mail in the last couple weeks regarding a writ of execution in Los Angeles County Superior court. It’s from the Law offices in SD that seem to handle all Capital Ones recovery efforts in Southern Ca & Capital one as the plaintiff. It totals $3350 from original judgment that occurred back in Jan 2008 (I looked at case history on courts website) & $2100 interest after judgment, totaling about $5500.
I’m floored at the extensive history and time period of this case history. She has no knowledge of ever being physically served or sent certified mail from this legal office or Capital One. She isn’t disputing the validity of the original principal of $1785 she owed or the interest that was taxed on. The default judgment was entered and that was that back I’m Jan 2008. Now she is hit with the Notice of Levy under Writ of Execution (money judgment) for the $5500. The property to be levied is: all bank accounts to which she has an interest.
The Notice of Levy was apparently (based on dates on form) ‘delivered’ on July xx. And the registered process server signed the paperwork. Well that form was mailed to her mothers house (not certified) & luckily her mom kept it not thinking it was junk mail due to the thickness (nothing on envelope stated anything). And here we are.
Reading your various posts (thanks again for being so thorough and helpful in your replies) that now it’s not time to contact Capital one and it’s time to contact the law offices. I’m all about DIY credit repairing as you prefer as well. As a side note she is a stay at home mom with no job, no property, & virtually no assets.We do have a joint bank account that receives direct deposits from my job. Now I’m afraid to have any money deposited into that account and will change my direct deposit information to an account I solely have an interest in. While keeping revolving balance of our joint account very low.
-What’s my best course of action if they already have the Levy notice filed; will they settle due to her financial constraints or is it game over at this point?
-Could a payment plan have them put hold on Levy to keep financials/bank accounts left alone?
I don’t want to have her contact the legal team (whom by the way has never spoken to her on the phone or left any messages; which is why I’m tempted not to have her call them as they seem notoriously hostile once they do communicate via phone based on other posts, etc) until I had some direction from you. I have some money to help out with this situation but paying full amount would break the bank (considering they’re about to with the judgment anyway! Haha) …
I have case history if you care to read, email me I will send to you…
Thank you Michael
You can call the law firm and settle. Can you come up with half the judgment balance?
You can get them to agree to payments too, but you may want to wait until their failed bank levy efforts are a month or two old. And do keep little money in that joint account at all times.
If you have the money to settle in a lump sum payment, I would negotiate that, before contemplating payments, as that will typically mean paying full freight.
I would also encourage you to talk about your situation with an experienced consumer law attorney in San Diego. I know an excellent one, and can email you his contact details if you like? You may find he can leverage the lack of service, or any other case anomalies he finds, in your favor. Here is a reader comment from yesterday that speaks to this.
Hello, I have been sued by Cap1 (represented by Hayt, Hayt, & Landau in PA) for >$20K and was served papers a week and a half ago. I have spoken to a law firm that keeps pushing me to their own debt relief program to negotiate and consolidate all my debt (>$100K). I have good income, but know that the payment they are asking for to get me in the program is not an amount I am confident I can pay month after month. Because of my income, they are telling me that I won’t qualify for bankruptcy. I know it may be a good option at this point, but can’t help but feel like they are telling me this is pretty much my only option since they make money off of it. I am looking to buy more time because of some promising real estate transactions that should occur by the end of the year will give me at least some substantial cash to settle some of the debt. My question is, can I just file an answer to the suit myself, and hire a lawyer later if needed? I have an appt to speak to another lawyer on Friday, but I am on a time crunch now and want to be sure I am comfortable with my representation. If I do answer pro se, should I demand/request documents from Cap1 to prove the debt and amount is correct? Thanks in advance, this site has been a good resource.
You would probably get a better delay affect by using a skilled collection defense attorney. Are you east or west PA? I know some highly skilled (both fair and affordable) in PA, and either can help you with your goals.
There are state specific parameters to qualify for chapter 7 bankruptcy where you can discharge unsecured debts. What is your household income, and how many dependents do you claim?
With a 100k debt you were juggling, I can assume you make more than the media income in PA for chapter 7. That would leave chapter 13. Settling debts is often a good alternative to chapter 13.
Hi,
My husband and I have 3 charged off credit cards with Capital One. Our last payments on them were October & 1 in November 2013. We have had debt collectors calling but have not yet been served lawsuit papers. I’ve been trying to negotiate with the collectors. What I have come up with is on 1 card owing $1,365.29, they will accept either 60% of the balance in lump sum, or 80% for 6 monthly payments, or full balance payoff over 12 months. For the 2nd card owing $1,457.86, they will accept lump sum of $1,181.89 (our balance due at last payment), or a 6 or 10 month payment plan of the $1,181.89. And for the 3rd card owing $1,139.68, they will take 60% off for a lump sum, or 80% off for 6 months, or the full balance over 12 months. Now, we also have a hospital bill from when my 2 year old was injured at the library. We are trying to figure out a payment plan for that too but without having spoken to the financial counseling office at the hospital yet, they want a 12 month payment plan currently. That will go into collections in about 30 days. My problem is my husband is the only one working. We have 2 boys who I stay home with. My husband averages about $3,700 bring home. We’re expecting a slow period over the fall/winter that caused us to go into this credit mess in the first place (last year his income was reduced almost half). Our current expenses total $3,300. If we chose the 12 month payment plans the collectors offered, the lowest amount, that would add about $327 to our monthly expenses. Not including the plan we can work out with the hospital bill. We only have 1 vehicle so finding a job for myself (at night to be opposite schedule of my husband) will be difficult especially since I’ll only be available a short few hours and maybe Sundays. I’m wondering: how likely is it for Capital One to sue us before January/February/March? If we can try & save as much til then I think we’d be in a lot better position, and would also be able to use our income taxes to help pay off. Thank you SO MUCH!
It is possible that none of the three Capital One accounts will advance to suing for collection between now and tax time 2015. I would put good odds on one of them suing before then though. You can still work out affordable payments when sued, but usually for the full amount if you cannot offer a lump sum settlement.
Who are the collectors for Capital One now? If any are attorneys, are they in state?
Thank you for getting back to me! Two cards are with United Recovery Systems LP in Houston TX. The other is with First Source Advantage LLC in Buffalo NY. If one does sue would they tack on legal fees to our amount owed?
Neither United Recovery Systems, nor First Source Advantage would be the ones to sue. When an attorney licensed in your state is collecting, that will be a clear indication of being sued by Capital One. You can negotiate with the collection attorney too, or even after sued, but it is better to settle for a single lump sum once your debt reaches the court.
If you were sued, the amounts would increase.
So since we’re not at the point of an attorney collecting, we may be safe to wait until tax season 2015? Would it be smarter to let the collectors know this to be noted on our accounts?
You will not be safe to wait until your tax return comes in my opinion. But it is what it is.
Maybe you could swing settling one for a lump sum before then… perhaps even two. Set aside as much money as you can all the time until you are able to put together a plan to settle, or pay within your budget consistently.
It is rarely a good idea to let debt collectors know anything, and least of all when, and how much money you will come into.
Thanks for your help. I was trying not to get into the whole saga of my situation, but here it goes (summarizing as much as possible).
I had an 820 credit score, until I got pregnant. The relationship ended badly, I found myself a single parent ,paying outrageous fees for childcare,and not getting any financial support. The additional expnses caed the downward spiral. Credit cards,student loans, auto loan when into default. Car was repo’d. Then came the medical issues. I’ve been unemployed sce2010. I’ve been diagnosed with MS. So the medical issues aren’t going to away. Just progressively going to get worse.
I’m finally at a point where I can physically try to find a job. In order to do that I need a car. I have roughly 5kthat a relative has offered to loan me.
Fast forward
All of the negative items fall off my credit report by Feb 2015. I can wait for those. My concern is the cap one judgement being renewed o revived. I’ve been told that can happen for nearly 27 years.(IL)
The plan is to use the 5k, settle the cap one judgement, use the rest to buy car. I’d like to buy a modest home in the next 18-24 months. Assuming I find a job and can save enough for a down payment.My concern is that if I should become unable to work my kids have a place to live.
Stick to the MS diagnosis, single mom, and currently unemployed (leave off the now looking for work). You have family willing to help you, but they are limited on funds too. Target 50% of today’s balance. Do not think this all has to be done in one phone call, it doesn’t.
Hi,
I have a default judgement from capital one from 2007or 2008. ($1700) I received a letter in Mar ’14 offering to settle for 65% of $3000. I have several other debts (IL toll authority) and student loans. I’ve been adv by bk atty that bk wouldn’t help me since the onlything dischargeable is cap one. Also, I am unemployed and only income is child support which is exempt. I have legal aid atty who would file Ch 7 for me pro bono, all I would have to pay is court fees. Would Cap One likely settle for the amount I would pay to file bk? I have recentlybeen having major medical problems and would rather reserve the option of bk for later if needed to resolve medicalbills.
I am with you on holding out to file chapter 7 until your situation stabilizes.
No, I do not think Capital One will settle your judgment debt for less than 400 dollars (I think court costs and filing fees for chapter 7 are just under that, and you can do the required credit counseling for bankruptcy through an online program for less than $20). You can call the attorney for Capital One and try to settle for that amount, and take time to point out that all of your income is exempt, along with the fact that you would file BK shortly. But CapOne is not known to respond favorably in this situation.
Hang in there and see where you are at after medical needs are met. Post an update if anything changes and lets go from there.
Thanks for the reply.
background: My husband was finally approved for disability and received his back pay on the first of this month. He called capital one to settle with them and they said because he had placed a block on their calls they could not talk to them, he didn’t understand that so he said he needed to talk to me before calling them back because I was out of town. He wanted to talk it over with me because we have two cards with them, one of them has not been paid for about 5 years, the other he continued to use and had been paying up until last year and he wanted to make sure of what amount we could negotiate for the two accounts. Then the following week we get a letter from Luftman, Heck & Associates that a case has been filed by capital one and that we may need their services. I looked it up on the Los Angeles Superior Court website and it notes it was filed on the 17th, which was about when he called them. We have not received any official notification as of yet.
Questions: Would they be able to garnish his backpay? or Would the court allow payment arrangements? Should we contact the Attorneys that contacted us? or Do you have a CA office to refer us to? I am leery of “Ambulance chasers” and although the outside envelope has a San Diego address, the letter contains mostly OH addresses for the attorneys.
I would encourage you to consult with an experienced debt collection defense attorney in your state before doing anything else. I know a really good one in the Sand Diego area. Is that where you are?
No, we are in Long Beach, CA
I sent you an email with contact details to an attorney with the experience you want. Jeremy offers a no cost consult, and works with people all over California. If you need someone in and around the Long Beach area he can refer you to someone with his experience.
Thank you we have contacted them and they said the distance is not an issue.
Mike I am using a Debt Relief Firm (FDR) for the 18months. They settled approximately 18k in debt on my behalf. I only have one more month until that is all paid in full. Today I got a letter from the local small claims court here in Massachusetts saying Capital One has filed suit for $3300 which is the last of all the debt I have and must appear in court in December. Should I call FDR or Capital One to get this resolved? There is no attorney listed on the court paperwork only Capital One. I am in a position in life now where I could easily send them $500 month between now and the court date to clear it all up. Suggestions?
Ryan – Talk to Freedom Debt Relief and find out there position on this. I would want to settle this, not make 500 dollar a month payments to Capital One. If Freedom Debt is not able to assist, post an update and lets go from there. I can help you work on negotiating the settlement yourself. Can you pull together roughly 2k? How long would it take to do that?
Ps. I cannot afford legal counsel. Am getting help with the payoff. Yet one section says that I have had the chance at legal counsel and I am confirming that I have carefully read and fully understand all terms of the agreement. But the language is so complicated and obscure that I think only a judge and a court could determine final meaning. I would like to settle and not go Chapt 7 (have 4 other large debts also), but do not want to make a mistake and get burned. I guess I could offer to deduct my legal costs from the settlement amount and get a lawyer to advise me.
You did not point to anything that would suggest the attorney for Capital One is trying to game the situation, unless of course, they are charging CapOne by the word….
How much do all of your other debts ad up to?
Why avoid bankruptcy?
Dave – I reviewed what you emailed to me. Standard stuff for my part. I do recommend connecting with a consumer law attorney in your area.
I lost my job years ago and am unemployed. I have a debt with CapOne which I stopped paying in Jan 2013, with a current balance of ~$6,000. CapOne hired a local law firm who won a judgment in Sept 2013. With letters back and forth since Feb 2014, finally the law firm sent me now in June 2014 “the approved settlement agreement from Capital One for your review and signature” for a lump sum payment of about 22% of balance (family are helping with the funds). I have 2 concerns to ask about:
1)The document mentions the official judgment by title, and Capital One throughout as agreeing, but the signature page shows only the law firm signing (and me, of course). Can the law firm sign for CapOne as authorized to settle the judgment for the stated amount?
2)It is titled “GENERAL RELEASE AND SETTLEMENT AGREEMENT,” and it is 6 pages long. Section 2 (of 11 sections) titled GENERAL RELEASE is very complicated and lengthy, and, even with a Master’s degree, I cannot really understand it; but it appears to release “the creditor” from obligations in other parts of the agreement that are fairly straight-forward, and is mostly about the Defendant (me) “waiving and relinquishing” rights, and also references “Section 1542 of the Civil Code of the State of California.” But I reside in a Midwest state, and the last page says the “internal laws of the Commonwealth of Virginia” and “the United States of America” would apply. Please comment.
Why is the “GENERAL RELEASE” needed? And can a law firm sign the legal settlement agreement and obtain satisfaction of judgment with the court without a representative of CapOne signing off on it? Could the GENERAL RELEASE allow CapOne’s law firm to sue me for legal fees of CapOne after the settlement is paid and finalized?
I would tell you more personal specifics, but the SETTLEMENT AGREEMENT has a confidentiality clause that I want to honor.
Ps. Thank you for your website. Very helpful and informative.
1. It is fairly common for the attorney to sign for Capital One on settlement agreements like you describe.
2. I cannot comment without reviewing the document and verbiage, and even then I would encourage you to run this by an attorney in your state in order to proceed with confidence that section 2 did not somehow impact you in a manner you would otherwise not have understood.
Nothing of what you have shared seems out of the ordinary. The general release is often just a way to say something in hundreds/thousands of words that is really just – We agree to these terms, and you are not going to come back later and say you didn’t, or otherwise mess with my client.
I received a notice from Peter Francis Geraci Law Firm here in Illinois regarding a lawsuit filed against me by CapitalOne but I never received a summons to notify me about the hearing. What can I do? Can the garnish my wages? Freeze my bank account? HELP please I am scarred! I have not heard from CO since I had to file a complaint against them for harassing me at work with phone calls. I owe @ 2100 and would like to settle but how do you get in touch with a legit CO representative? Thank you for responding to me.
The attorney Capital One hired to sue is their legitimate representative. If you want to settle, you can call and negotiate the deal with the firm.
I am concerned about the fact that you never knew you were being sued. You can look up the record in the court and find out what address they say you were served at. Post an update if you do not know anything about the address, or anything else odd about the service of process.
Illinois protects up to 85% of your wages from garnishment. You may be able to contest any amount of your wages being garnished as creating a hardship, and the court may protect you even more. Talk to the court clerk about how to contest any garnishment if that comes up.
I have a Cap1 Card that’s about $7000, and a balance with Chase for about the same amount, but I have worked out a payment with Chase whereby they reduce the interest and close the account. I have called repeatedly to work out the same with Cap1, but they’re not budging.
My circumstances in the past couple years have included an arrest (my fault, but still cost me about $5000 that I already didn’t have) a period of unemployment and a low paying job for about 2 years. I’m in my second month at a much better job and finally have the income to start catching up.
However, credit cards are low on my list. Every month, I pay mortgage, bills and car first. I pay what I can to the credit cards. I saw a notice on my Cap1 account when I logged in recently that said I “qualify” for them to take legal action–I think this is a scare tactic. I’m trying to validate my belief here, but I was under the impression if I was paying SOMETHING that they would have a hard time taking me to court.
I live in Alabama, so I’m researching those laws. Do you know if paying anything, even less than the minimum payment, would prevent the debt from going into collections? (in a few months, I can pay a lump sum to get my caught up, and I made sure to inform Cap1 that, but credit card companies are kinda soulless… )
Thanks in advance!
If you are not paying Capital One the monthly minimum, or do not have an agreement with them to pay less than the monthly minimum (like you set up with Chase), they will send the account to collections. Capital One is one of the banks most likely to sue for collection, so there is a legitimate concern.
How long has it been since you last made the full payment due?
When you say you will have enough in a couple of months to get the payments caught up, how much is it you intend to pay?
You may still be able to head CapOne off from more aggressive collection patterns they follow.
Hi Michael,
I live in Los Angeles and I received a summons from Capital One last 5/14/14 for a debt that costs around $4000.
The person who brought the summons just handed me the paper and said that I was being sued by Capital One and that I should contact the law office indicated to settle. I have received a summon before for an entirely diff reason but it was more formal and I had to sign something to legit say that I receieved it. On paper it indicated it was electronically filed and I checked LA superior court online and saw the case filed. I have total of 5 credit cards 2 of whom are still current but Im only making minimum payments. The remaining 3 that were sent to collections coz ive not been making payments were Capital One (im being sued), Chase and Bank of America. So the delinquent totals to around 16-17,000. I spoke to a financial advisor recently and I told him about my case. My plan was to borrow money from my 403b to pay them off including the current ones coz i wanna be free from debt once and for all. I really dont know how to deal with debt collectors even collection legal firms. The financial advisor would help me with my 3 delinquent debts for $1,500. Is that a reasonable amount or the amount Im trying to settle is not too much that I may not need a 3rd person to settle for me that I can do it on my own? I haven’t asked if how much he would charge me if I just hire him for the account that has a case filed against me. Please help me out. It’s nearing 6/14/14 I have to contact the law firm that sued me.. Thank you!
Jenny – You do not need a financial adviser for the Capital One collection suit, as much as you need an experienced debt defense attorney. And probably only help to file an answer so that Capital One does not get a default judgment (which can but not always make it more of an expensive settlement).
I an going to email you contact info for an attorney you can consult with initially for no cost. You may/may not hire him, but talking with him to get your bearings straight is the right thing to do right now. Tell him about your debts and your goals, listen and ask questions.
As far as the Chase and Bank of America accounts, you can tell from the site that I am a huge supporter of DIY debt settlement. And I have worked with thousands of people who have been reluctant DIY-ers. I also know that some people cannot, or should not, negotiate their own debts. And paying someone to do that for you is a cost you can cover, and are good with, I get it.
Sometimes negotiating your debts can be mix and match. You do some, and have a pro settle the rest. There are accounts, banks, and debt collectors, that are easier to deal with than others. Who is collecting on the Chase account? Who did you last hear from by phone and mail on the BofA account.
You can review and post questions about settling with BofA debt collectors here.
You can read more about, and participate here, regarding Chase settlements with collection companies.
The people who actually took the money out of my account was Merchant Recovery Services of Charlotte, North Carolina.
Thanks. You can access your bank records to show the payments you made. Did you get a settlement letter from this debt collector? Anything in writing?
What is the name of the new debt collector telling you Capital One never received payments?
In October 2013 I got a call from a collection agency to pay off my Capitol One account. I agreed to pay it off by having them take out $100 from my account over a 5 month period which they did. the last payment was in February of 2014. I just got a call from another collection agency saying they know the money was taken out of the account but Capitol One never got the money and will be taking me to court unless I pay another $380. They also said they sent someone to an address I haven’t lived at for 10 years to try to collect the debt. Any suggestions on what I can do?
What is the name of the collection agency?
I received a call from Spokane WA about a card I had in 2000. The charge off on my credit report was in 2008. I never heard from them again. They say they needed money today or I will be summoned for credit card fraud. I tried to get some proof that they were legit and the lady tols me no. She then said she would take 200.00 to hold the account (maybe) until I got the rest of tt
He money. I did not have that today but would tomorrow. She told me that would not work paying tomorrow. She said they would see me in court. If they charged off my balance and it was removed from my credit reort, can they still do this? I have not heard from them since 2008.
Cathy – Sounds like a scam. File a complaint with your state regulator (like consumer affairs, AG), or with the CFPB.
If they call back let them know you will talk with them again after they respond to the complaint you filed with state and federal regulators.
Legitimate debt collectors do not make the threats you just heard.
Michael, thanks for the reply. I have about 25K debt on 5 other cards (not including this one).
The law firm is Nilson & Kinnard in Sacramento. I have considered bankruptcy and have actually consulted 2 attorneys this year.
Thanks. The lawsuit will come. Assume for a moment you could settle with Capital One for 50% of today’s balance (before any legal fees are added). That’s 1650.00. If I knew who the other credit cards were issued by, and who is collecting them now, I could offer more specific estimates, but assume you could settle the remaining credit cards for a total of 10k. You need 11650.00 to deal with the debts out there. Compare that with the national average cost of a chapter 7 bankruptcy at 1800.00 (that’s court costs, attorney fees, everything). Bankruptcy is the more economical choice. Credit reporting and access to credit products are going to be the same between the two – see debt relief and credit reports.
What are some of your concerns that have prevented you from filing?
Hi, I recently received a letter from a California law firm, on behalf of Capital One, concerning a card I owe $3258.oo. My last payment was about a year ago.. I reside in California, so I know the proverbial chickens are probably coming home to roost. I have been out of work for 2 years now. My unemployment benefits ended a few months ago and now I have zero income and a rapidly dwindling bank account. The letter which is dated July 30th is the usual “you have 30 days to dispute this debt, etc.” verbage. The thing is, I am expecting some money in the form of a loan from an aunt, but she can’t give me any money till around late September. Would you have any guesses as to how close I am to being sued ? I also have several other distressed credit cards.
Ron – Given the debt is a Capital One credit card, and is now with an instate attorney (would help to know which one), I would say the lawsuit to collect is inevitable, and probably within a few weeks to a couple months.
Before I offer feedback about stalling this from happening, or how to potentially approach a suit if it happens before you loan from your aunt, I want to ask if you have considered bankruptcy? Not that bankruptcy would make sense on the debt with CapOne totaling 3300.00, whether sued or not, but because you mentioned other credit cards that have not been paid. What are the totals for all of your unsecured debt? If you could file bankruptcy for 1800.00 and get rid of all of that, perhaps using the loan from your aunt in order to hold yourself over until you get a new job would make more sense.
You could send a debt validation request to the attorney Capital One has the debt with in order to maybe stall a few weeks. They will have no trouble getting the necessary info from Capital One in order validate the debt, but a few weeks of stalling until you are in a position to negotiate a settlement might be just the ticket.
If you are sued before you are in a position to fund any settlement, you will want to file an answer to defend the suit in order to buy some additional time, and also for the fact that it will often lead to a better negotiated settlement than if you did not defend. Let me know if that happens (the suit), and I can offer some feedback and resources from there.
I received a summons to go to court over a credit card bill from Capital One of $4,100, $700 of which is in late fees. I can pay $2,000 right now and might be able to borrow the rest. I would really like to settle before going to court on June 20. I live in Illinois.
My questions are: should I talk to the lawyer listed on the summons, or call Capital One directly to try to settle?
Can I get the case droppped with paying 50% or must I pay it in full?
How should I speak to the person I need to speak to?
Thanks for the help!
Courtney – Calling Capital One to settle will lead to them referring you to the attorney anyway. Yes, you can negotiate with them, settle for some savings, and get the case dismissed. Targets for settling Capital One lawsuits can range from 50 to 100%. The most realistic targets will be between 60 and 70%. You will have to give them a reason to settle with you. In other words, the things that make it tough to be you financially since you stopped paying Capital One are okay to discuss. You should include the fact that you may be able to raise xxxx amount, but from several sources, but only if it can resolve the debt.
You want to get any agreement in writing.
You do not have to get this all done in once phone call. You can follow up a few days later etc.
I would not lead with your calling in to settle for x. It is often better to start off soft and explain your financial struggles. This is a better tone to start the first, and any additional calls.
It is a good idea to connect with an experienced debt defense attorney of your own when you are being sued.
On October 2, 2012 I was served with a Summons from Capital One Bank on behalf of Legal Recovery Law office in San Diego, CA for 5352..09
I filed and answer in hopes to try and work out a payment plan. The last time I paid on the card was appx Dec 2011
A case settlement conference has been set for April 5, 2013.
The main problem I am having in negotiations is the law office wants be to settle on a monthly amount that I know I will not be able to afford. I have suggested an amount more reasonable but they do not want to agree.
A couple of days ago, I received and amended complaint, motion submitted without appearance, declaration in support of plaintiffs motion to amend the complaint, memorandum of points and authorities.
Do I need to file an answer to the amended complaint? Is there a time limit? Would it be the same as the first filed answer?
Am I able to call Capital One directly to try and work out something or must I continue to deal with the Legal office?
I am working less than full time right now and 3 other credit cards are with negotiated payments. I don’t have money to hire an attorney unfortunately. I was trying to take care of this on my own, but it starting to be a little overwhelming.
Thank you for your thoughts
Tara – You will not get anywhere by calling Capital One to try setting up monthly payment arrangements. They will just direct you back to the debt collection attorneys.
Sometimes it is necessary to be a participant in the court process like you have been, in order to get in front of a judge and show how much good faith you have been operating with, trying to make payments, but they have been refused. Once in front of a judge, share the limited income and how you are on payment plans with other creditors, you are stretched thin etc. This is an actual strategy.
You do not have funds for an attorney of your own, which is who you should be contacting about court procedures and how to respond to the amended complaint etc. Have you contacted a low income legal aid office nearby? With a limited income you may qualify for very low cost, or even no cost legal assistance.
Yes, there is a self-help workshop at one of the local courts that would be able to offer some assistance. Unfortunately, for me the next workshop is April 12 and my settlement conference is April 5. I assume the purpose of the settlement conference is to try to avoid going to trial. Could a judge compel them the take the settlement offer?
It is an opportunity to get done what you have been trying to get Capital One to agree to already, but in a more formal setting. Would the judge compel a settlement, or an affordable monthly payment? Depending on your income level, you are possibly exempt from garnishment as is (not that you always will be) when compared to state guidelines and the part time income you have. Judges do see this type of thing week in/week out. While compel may not be the right word, strongly advise and encourage would not be a stretch.
Thank you Michael. Much appreciated.
Hi Again, I responded to the email sent, but don’t think it went through, so I wanted to respond here as well. I truly appreciate your thorough and thoughtful response. At a time when it is incredibly stressful as it is, your response is much appreciated. I will try to be more specific. I just got served summons and complaints for two accounts from Capitol One from Weltman, Weinberg, and Reis in Michigan that was sent to my Michigan address, but now I am in Florida and they found me here and I got the certified letters today.
The two debts are 1300$ and 1200$ approx. I have been researching this law firm and although Capital One is listed as the complainant, some research has shown that they might not actually be and some have found that Weltman actually purchased the debt from them? Not sure. My last payment on these cards was about 16 months ago. I have lived in Florida for 3 years. I have income and own a home. They do not have my phone number or any other contact info except my address. I also have a joint checking account with my husband.
I know I must respond within 28 days to the court and I plan to respond certified mail receipt returned to them and the court, what should I respond with? I have read other comments and possibly a DV letter? They sent only an unsigned capital one contract with the summons. How should I best proceed here?
I won’t waste your time with explanations of the debt, but shortly after we opened it my husband nearly died in an accident and he was not working due to this. It put us behind on everything. I currently do not have any extra money to be able to pay them (maybe 50$ a month or something), but if I can stall them until February I can use my tax money to pay them off. Or, I also get a lump sum pay out for my job in May, if I could somehow put them off until then that would be ideal.
Should I have any contact with them by phone? Or strictly mail? I have read horror stories about this firm and their intimidation tactics and unethical behavior so it concerns me that I am not dealing with a reputable firm, the internet is flooded with complaints about them. The firm is located in Michigan.
Do you recommend an attorney? If so would it be one in Michigan or in Florida? I am a quick learner and researcher and may be able to tackle this on my own if need be.
Well, lets put out this fire first, but I have a few other debts, all with collections, and one just went to another attorney. I am hoping they can wait until May to be able to settle. Should I contact them, the collections companies, and the one attorney to try and stall them? Or should I write them certified letters requesting 50% pay off to be paid in May and set up an automatic payment of some sort for then? Or pay small amounts until then and arrange to pay off then?
I can not thank you enough for your assistance at this point. I put out a lifeline and you saved my sanity. I am happy to set up a time to speak by phone if that works for you as well, I am free any time and when you respond to my email can I respond to that with my phone number? Thank you.
If you think I am putting myself at risk by making this information public here in this forum please delete my posts. Thank you in advance. Tracy
Tracy – I would not get too hung up on the stuff you read on the internet about Weltman Weinberg and Reis. Every situation is different. Stay focused on yours.
I doubt very seriously Weltman Weinberg bought your Capital One debt, or any others for that matter. Capital One has not been selling much debt in recent years.
You are being sued in a state you have not lived in for years. That is where to start. Filing an answer to the MI lawsuit and getting the case dismissed for wrong jurisdiction would appear to make the most sense. You should connect with an attorney on this if you are concerned about how to do this correctly. A typical DV letter (debt validation request) would not serve much of a purpose after being sued. DV letters are applicable prior to being sued. Besides, your being sued in the wrong state anyway.
Yes, it is possible to stall some of this until February and May. First thing first is to get the Michigan suit dropped.
Communication with Weltman Wienberg and Reis is not scary. As far as attorney debt collection firms go, they are one of the better ones I have communicated with, and most our prior CRN members have had no real issue when speaking with them.
I do not think you are at any risk from making these posts whatsoever.
You can send an email reply to this comment notification you get and it will be delivered to me. Lets go from there on setting up a time to speak. With tomorrow being Thanksgiving, lets shoot for Friday or after.