What can they do?

[being_sued]

What is the name of your state? VA

I recieved this the other day from Capital One:

We are writing to inform you that your account was referred for legal action. A court date has been scheduled for 20050518 in RICHMOND GENERAL DISTRICT COURT. However, we are still willing to resolve this matter and will dismiss this action should you pay your outstanding balance.

Unless your payment for the charged off amount of $5342.56 (payable in certified funds) is recieved in our office no later than 20050418, we will proceed with the lawsuit and whatever additional action is necessary to recover balance due. As a result, you may be responsible for additional legal costs incurred during litagation, and we will use the necessary measures to enforce any judgement obtained. Be advised that any judgement will be reflected in your credit report, in addition to your account being previously reported as bad debt.

If your payment is recieved by the date listed above, your case will be dismissed.

--------------------------------------------------------------------------

I live in trailer that I own valued at roughly $3,000. I have a car that I'm just now paying off the negative equity off of. I was recently laid off from my job and my wife is unemployed. Do I have the kind of assets that would make a lawsuit successful? Or do they have no chance?

 

[Ladynred]

I suggest you call the Richmond court and find out if there really IS a lawsuit filed.

Are you certain this letter came directly from Crap1 ???

If they have filed a lawsuit, you will have to be served a summons and complaint. You will probably be required to file an Answer to the Complaint, usually within 10-30 days (varies by state). If you get a court date after filing your Answer, then you should GO, you will have one last chance to settle the debt. If you don't want to do that, you CAN still call the lawyers suing you and negotiate a settlment.

They can garnish wages, sieze bank accounts, and sieze any non-exempt assets. They can also put a lien on property if you own any.

Now, before you think about settlements - how old is this debt ?? When was the last time you paid Crap1 directly ??? If its been more than 3 years, you would have defense to get their lawsuit dismissed.

 

[being_sued]

"I suggest you call the Richmond court and find out if there really IS a lawsuit filed."

That's not a bad idea. I do know that creditors love to use scare tactics. I've read a lot about the strategies they use and have experienced the nastiest woman I think the industry has to offer. She managed to piss of the entire office at my old work! Wow, did they hate her!

"Are you certain this letter came directly from Crap1 ???"

It would appear so, yes. The address is:

Capital One Services, Inc.
P.O. Box 85617
Richmond, VA 23276-0001

And then, on the next line, it says Creditor: Capital One, F.S.B.

"If they have filed a lawsuit, you will have to be served a summons and complaint. You will probably be required to file an Answer to the Complaint, usually within 10-30 days (varies by state)."

Huh. I haven't recieved anything else, yet. I'm hoping it is a scare tactic. I don't know, though. The amount I owe is pretty large. That would seem to warrant a real alwsuit and not just talk.

"If you get a court date after filing your Answer, then you should GO, you will have one last chance to settle the debt. If you don't want to do that, you CAN still call the lawyers suing you and negotiate a settlment."

The lawyers are generally, I've found, more willing to accept a reasonable payment plan. The guy in charge of my case wanted $500 some per month to pay it off! Ha! I couldn't afford the $128 on top of my other bills before -- and now I'm laid off! He even suggested I take out a loan against my home! Sorry, it's not worth that much, besides they don't trust me. I've already tried applying for loans to fix my finances.

"They can garnish wages, sieze bank accounts, and sieze any non-exempt assets. They can also put a lien on property if you own any."

The only thing that I own that they could take would be my trailer. If they take that, I'm homeless.

"Now, before you think about settlements - how old is this debt ?? When was the last time you paid Crap1 directly ??? If its been more than 3 years, you would have defense to get their lawsuit dismissed."

It's only been about 6 months, actually.

 

[paralyzingdebt]

I also just got sued, but by a 2nd or 3rd party lawyer

State I lived in (and have lived in): Texas

It's been over 3 years since I last made a payment to Discover card. They sold the debt and now an attorney in Georgia is sueing me for nearly $20,000. I'm a single mom with no child support, a car worth less than $1500 and live in a rental apartment. I have no savings and even my "regular" bank account has less than $100 in it right now. I've been living by the skin of my teeth.

I am hopeful that it having been over 3 years since I paid Discover that I have some hope? I do contract work (typing) so I don't get wages per se that could be garnished. If they take money out of my bank account I would be homeless or have to find a way to live without a bank account.

I just got the "Citation" today -- an "Original Petition" giving me until the Monday after 20 days since I received this Petition. It is April 26th and I guess that means I have until May 16 or May 23 to answer.

Any advice -- or should I start my own thread?

Michele in Texas

 

[paralyzingdebt]

P.S. Clarification plus another Question

I still live in Texas.

I was planning to move to Florida within the next year to help my son, who is graduating from high school this year, get residency there and go to the college of his choice and dreams. (He would have to delay college for a year and then still wait another year before it would lessen his tuition.) It will be impossible for him to go to the college of his choice unless I can get a parent loan for at least $14,500, and having bad credit I can only do that with a co-signer. If a judgment is made against me for $20,000-plus, will that affect my ability to borrow money for my son to go to college even with a co-signer? It seems like it would paralyze my ability to even help him that way. I feel so badly for him. He's such a good kid and it's not HIS fault his mom messed up!

Are we totally screwed? Anyone know anything I could do?

 

[Ladynred]

Michele, copy and paste your posts into your own thread, better chance of responses that way.

But a word, you need to find out EXACTLY when you last paid Discover. The SOL in TX is a short 4 years, so finding the exact date is very important here.

 

[paralyzingdebt]

Thank you, ladynred. Four years, oh boo! That's cutting it close. I just posted my own thread.

 

[being_sued]

it may be your only choice

"They sold the debt and now an attorney in Georgia is sueing me for nearly $20,000. I'm a single mom with no child support, a car worth less than $1500 and live in a rental apartment. I have no savings and even my "regular" bank account has less than $100 in it right now. I've been living by the skin of my teeth."

Wow, my Discover card only went up to $10,000. I maxed it out a year and a half ago. The interest is so high, though, that I only pay about $30 toward the principal every time I pay them -- and that's been $197-$200!

I don't know much about what to do about credit problems. The only thing I can think of in your situation, and I've been considering this, too, is to file for bankruptcy. When you're backed into a corner and fighting for your life, it would seem the only choice you have left. It's either that or go homeless and I don't consider that an option.

 

[paralyzingdebt]

I think my limit with them was $10,000. The other $9,000-plus is, I think from interest. Or maybe some was from consolidating a loan. I can't even remember anymore. Going bankrupt is officially harder to do now. I hear Bush signed it into law yesterday. But still it is not an option for me, because it costs over $1,000 and I am living hand-to-mouth. I have never had enough money to go bankrupt. Otherwise I probably would have, just to get it over with.

I found out my last payment was 2/12/2001, which is something like 4 years plus 72 days ago, so now I'm trying to find out if the statute of limitations has been exceeded. I have really always wanted to pay my debts. I made a lot of those purchases under a sort of temporary insanity and the end of 2000 when I thought the world as we knew it was going to end. But if I can't use the SOL as a defense, I guess the world as I know it is about to end very soon!

I tried really hard to do some things where I could potentially make lots of money (acting in commercials or films), but I never got a job that paid. One job I got to audition for would have paid well enough to pay off all of this bill and more. Too bad I didn't get it!

 

[being_sued]

"I think my limit with them was $10,000. The other $9,000-plus is, I think from interest. Or maybe some was from consolidating a loan. I can't even remember anymore."

Part of it is probably lawyer's fees. That's why lawyers take cases like these. They want the money.

"Going bankrupt is officially harder to do now. I hear Bush signed it into law yesterday."

Yeah, I heard that. I wonder if that affects all chapters or just one or two.

"But still it is not an option for me, because it costs over $1,000 and I am living hand-to-mouth. I have never had enough money to go bankrupt. Otherwise I probably would have, just to get it over with."

That's pretty ironic! I've heard it was only $500, though.

"I found out my last payment was 2/12/2001, which is something like 4 years plus 72 days ago, so now I'm trying to find out if the statute of limitations has been exceeded."

If what LadynRed said is true, then yes, it would appear so. It would appear that he has no case. That'd definitely be good news.

"I have really always wanted to pay my debts. I made a lot of those purchases under a sort of temporary insanity and the end of 2000 when I thought the world as we knew it was going to end. But if I can't use the SOL as a defense, I guess the world as I know it is about to end very soon!"

We all have our ways of rationalizing our actions. We realize we're doing something wrong but argue our case with ourseleves and tempation wins out in the end because it feels good to spend. I know, it happened over and over to me. It had nothing to do with the milennial craze that swept the nation. I'm an Atheist. That had no effect on me other than entertainment.

"I tried really hard to do some things where I could potentially make lots of money (acting in commercials or films), but I never got a job that paid. One job I got to audition for would have paid well enough to pay off all of this bill and more. Too bad I didn't get it!"

Keep trying. I recently got laid off from a great paying job. I was making $15.57 per hour! That's the best I've done for myself, by far!

Now the trick is finding another job that pays something close. My lifestyle depends on it. I have a big car payment to keep making. It's the best car I've ever owned and is a great family vehicle! I really don't want to lose it.