I just got a call from a law firm today about a credit card I owe around $4000 for. I talked to the person who called, and she gave me two options to pay it off, but neither is something I can afford with my current income. The lowest payment option was $700+ per month for 6 months, but that’s impossible for me right now. I’m working full-time and paying all my own bills. Any advice from anyone who has been through this would be really helpful.
Save your money until they actually try to sue you.
Vann said:
Save your money until they actually try to sue you.
Yeah, save up and offer them half of what you owe when they’re ready to sue. At that point, they’d rather settle than pay court fees and go after garnishment. It’ll take a while for them to collect from you if they do.
@Kavi
I wouldn’t suggest waiting to get sued. Capital One can go to court and force you to pay by garnishing your wages. They are serious about getting their money, even if it’s only a couple thousand. I’ve seen friends get into this exact situation, and Capital One always gets their money one way or another.
@Van
I don’t have a Capital One card, and I’m a server, so my checks are basically zero dollars. I know some lenders are more aggressive, but I’m going to save up and see what happens in the next few months. Thanks for your input though.
@Van
I think this is no longer Capital One—it sounds like they sold the debt to a collection agency.
Bevin said:
@Van
I think this is no longer Capital One—it sounds like they sold the debt to a collection agency.
Capital One has their own in-house lawyers and collectors. But yeah, it would help to know if it’s still with them or a third party.
@Van
Just asked the person who posted. You might be right, it could still be in-house.
@Van
Are you talking about a default judgment? That’s usually when someone doesn’t show up for their court date.
Vann said:
@Van
Are you talking about a default judgment? That’s usually when someone doesn’t show up for their court date.
No, not default judgment. They can take you to court anytime. Once you’re behind on payments, you’re technically already in breach of contract.
@Van
I get that. They can sue for breach of contract, but I’m wondering if people aren’t getting properly served sometimes.
@Van
I’m actually being sued right now for a small medical debt. People saying to ignore collection agencies are giving risky advice.
Vann said:
Save your money until they actually try to sue you.
Honestly, I was in a similar spot, but the lender didn’t sue until much later. Depends on who holds the debt.
Vann said:
Save your money until they actually try to sue you.
Honestly, I was in a similar spot, but the lender didn’t sue until much later. Depends on who holds the debt.
Yeah, Discover is known for suing over smaller amounts, like $4k.
Vann said:
Save your money until they actually try to sue you.
Honestly, I was in a similar spot, but the lender didn’t sue until much later. Depends on who holds the debt.
Yep, Capital One tends to go after people aggressively for amounts around that too.
Vann said:
Save your money until they actually try to sue you.
Honestly, I was in a similar spot, but the lender didn’t sue until much later. Depends on who holds the debt.
Not true. As a lawyer who deals with these cases, I’ve seen lawsuits over much smaller amounts. $4000 will likely end up in court depending on your state and assets.
@Dakota
We’ve all seen Judge Judy. That show is great!
Vann said:
Save your money until they actually try to sue you.
Honestly, I was in a similar spot, but the lender didn’t sue until much later. Depends on who holds the debt.
They might definitely sue for $4k. I’ve seen it happen for less.
Vann said:
Save your money until they actually try to sue you.
Honestly, I was in a similar spot, but the lender didn’t sue until much later. Depends on who holds the debt.
I worked at a collections agency, and we would sue for under $1000 if we thought it would lead to garnishment.
Vann said:
Save your money until they actually try to sue you.
Most advice here is unhelpful… since it’s already in collections, wait it out and save money. The older the debt gets, the more they might settle for less. Don’t engage with them until they serve you. Start saving, and if they do sue, offer a lump sum. Typically, they’ll take 30-50% of the original amount.