Capital One is suing me… what should I do

Seeking Advice
1

Like a lot of people, I got into credit card debt and handled it the wrong way. Now I’ve officially been served and have 20 days to respond to the law firm. I called them, and they offered to knock off $500 if I could pay the full amount, but if I had the money, I wouldn’t be in this mess.

I want to avoid court and bankruptcy if possible. I know I need to make some serious changes, and I don’t ever want to be in this spot again. My plan is to offer what I can as a lump sum and try to move forward. Any advice on how to handle this?

2

I used to be a debt collector and now work as a paralegal. My advice is based on US laws.

If they’re offering a settlement, it might be worth taking, but make sure you get a letter stating the debt is ‘paid in full’ or ‘settled in full.’

Since you mentioned bankruptcy, if you have other large debts, you may want to talk to a bankruptcy attorney just to see what your options are.

3

@Dallas
I offered around 30% of the balance, but I really can’t afford more than that. Should I keep trying to negotiate with the law office?

4

Ellis said:
@Dallas
I offered around 30% of the balance, but I really can’t afford more than that. Should I keep trying to negotiate with the law office?

You can always try, but they probably won’t go that low. Doesn’t hurt to ask though.

5

How much do you owe?

6

Finch said:
How much do you owe?

About $10K… yeah, I know it’s bad :worried:

7

Ellis said:

Finch said:
How much do you owe?

About $10K… yeah, I know it’s bad :worried:

$500 off a $10K debt isn’t much. You can probably get them to take more off, maybe even set up a payment plan.

Try offering $7,000 with a payment plan. They might counter with something higher, but it’s worth a shot. Some creditors have taken 50% off for me, while others wouldn’t budge at all. It depends on the company.

8

@Finch
So you mean offer 50% off and then try to pay 30% upfront, then do a payment plan for the rest? Maybe that’s the way to go.

9

Ellis said:
@Finch
So you mean offer 50% off and then try to pay 30% upfront, then do a payment plan for the rest? Maybe that’s the way to go.

Yeah, I’d start by offering about 30% upfront and go from there.

10

You need to file an Answer with the court where the lawsuit was filed. If you don’t, they’ll get a default judgment against you, which could lead to wage garnishment or bank levies.

Look up how to file an Answer in your state, visit the courthouse to see if they have resources for people representing themselves, or talk to a legal aid clinic. But whatever you do, don’t ignore it.

11

@Reese
I’m not really trying to fight it, just hoping to settle for 30% and move on :worried:

12

Ellis said:
@Reese
I’m not really trying to fight it, just hoping to settle for 30% and move on :worried:

If you’ve already been served, they probably won’t take 30%.

13

Gale said:

Ellis said:
@Reese
I’m not really trying to fight it, just hoping to settle for 30% and move on :worried:

If you’ve already been served, they probably won’t take 30%.

Would they go for 50-60%? Or should I expect to pay at least 70%?

14

@Ellis
After I got a court summons, the best deal I got was 17% off. They know they have more power once they sue, so they don’t give big discounts like they might before selling your debt to collections.

15

@Weston
Did you just pay it and move on? I might have some help from family, but I can’t afford more than 50%. I regret all of this and just want to put it behind me.

16

Ellis said:
@Weston
Did you just pay it and move on? I might have some help from family, but I can’t afford more than 50%. I regret all of this and just want to put it behind me.

I paid 33% upfront and now I’m on a payment plan for the rest. There was no way I could pay the full amount at once.

17

@Ellis
If you can pay it all at once, they might take 50-60%. They’re usually more willing to settle toward the end of the month.

18

Gale said:
@Ellis
If you can pay it all at once, they might take 50-60%. They’re usually more willing to settle toward the end of the month.

By end of the month, do you mean closer to the 20-day deadline they gave me?

19

@Ellis
Collectors have monthly quotas to meet. If they’re behind, they may settle for less if you can pay in full before the month ends.

20

Ellis said:
@Reese
I’m not really trying to fight it, just hoping to settle for 30% and move on :worried:

Even if you want to settle, you still need to file an Answer. If you don’t, they can get a default judgment against you and take money from your paycheck or bank account.