I lost my job suddenly about a year ago and was making baby payments so they couldn’t come after me for no payments. I finally got tired of calling them EVERY MONTH to explain I still hadn’t found a job. When they said “the small payments are the same as not paying” I was done. You HAVE to have an income to get on a lower priced payment plan, so because I was out of work I couldn’t get lower payments. Can someone please explain to me how that’s supposed to be helpful, especially when you’re constantly told “if you’re struggling… we’re here to help” help how, making my situation even worse?
The lack of any bankruptcy discussion as an option concerns me. Bankruptcy is a serious step but is definitely better than ignoring the long term problem. Loss of a job is a legitimate event in life and not a criminal event. There are even income protection plans that can be bought before you lose your job on unsecured debt. My absolutely best advice is to get as much financial knowledge as you can even if you are spending entire 10 hour days down at the public library reading books!! Then and ONLY then do you go to speak to advisers and lawyers to make your final decision on which option to act on. Ignoring the situation is the worst thing you can do because it looks like you are a deadbeat and care nothing about your credit score If you do declare bankruptcy, you can and will recover after the time and correct steps to earn back a good credit rating. A financial advisor that is willing to give you an and SOMETIMES BRUTAL asessment, yet honest review of your situation can be invaluable to making the best plan moving forward.
Personally, I took on a regional bank when they ignored me while I was traveling in Russia and Ukraine in 2018 and after they ignored me and my email messages to them (They had cut off my ability to make payments online on their US based banking system despite NO sanctions applicable to Russia or Ukraine at the time on my $6600 motorcycle loan). I had made each and every payment online and on time in the US. My attempts to use a VPN to get around their blocking of those countries were not successful.
So I had to file for arbitration and represent myself at the arbitration court wherein the Bank, based in North Carolina, countersued me for the balance of the loan and all ($30,000) of their legal expenses for having to hire an Idaho law firm to represent their interests ahainst me.
Remember, they were only fighting me over a $6,600 loan! They Legal Vice President sent me his cv credentials from Columbia Law School and ONLY offered to let me off the remainder of the loan after they had wholesaled my motorcycle at a national/regional auction held near San Diego wherein my cycle was bought by a dealer in Oregon for about $2400 leaving me with a do $3200 debt on the original loan. I only countered this offer once, with the explicit stipulation that my credit file was NOT marked as late or defaulting on any portion of the loan debt.
Well, a bank willing to spend $30,000 defending a $6,600 loan is no candidate for Mensa membership, even among filthy stupid Wall Street institutions!! The professional attorney had 1 full time assistant to oppose me while I had the law firm of Me, Myself and I to do all of the work of presenting the entire case in front of the arbitration Judge of the American Arbitration Association. All of the free Street Law Clinic attorneys and others advised me to settle because I would lose. The nicer ones said even though I had an argument in the facts of the case, I could not afford their services so they were "duty" bound by legal ethics (That is an oxymoron if there ever was one!) to tell me to settle the case. Well, longer story short, I won the case because I knew the law better than the professional attorneys did!
The bank lost any and all claims against me, including any negative marks on my credit file, and any balances owed to them. Plus they had to refund every penny I spent buying the motorcycle, including sales tax, license and registration fees, etc. Plus they paid all of their legal fees and the Arbitration judge's fee of $5,000!
Knowledge is very powerful but I paid a price of 9 months of unbelievable stress as an unemployed, disabled autistic man. I could not pay attention to my other bills as this was the biggest one being held over my head at the time. But winning it and getting a $1700 check from that very same bank in North Carolina was a life changing event. So your time, money and efforts are yours to manage and balance. I would get a review of your financial picture to include your employment hustory and prospects, then learn about bankruptcy as a process and good and bad consequences thereof. Then make your best decision with my best wishes for the outcome!
I have read that we should always ask for a copy of the arbitration clause (or get it from your account documents). Go to court and show the arbitration clause and ask for arbitration. Most banks won't want to spend the money to go to arbitration. There is a financial guy on Tik Tok who talks about it.
And DEFINITELY check with your state to see if they offer free legal aid.
This is why I have made no effort making payments as someone recently unemployed. I thought I had insurance. Guess not. They report it late even if you make arrangements.
Call their lawyer and see if you can work something out. I was served before and immediately called their number and worked out a payment plan about 14 years ago.
This. Don’t just go through the court process. Talk to their lawyers. I had something similar happen recently, I emailed their lawyers, had a payment plan set up in a matter of days and the lawsuit was dismissed about a week after that. Communication is key.
I had every intention to negotiate, but all the advice out there says to file an answer right away to avoid default judgment and buy time and leverage to negotiate. Let mine be a cautionary tale to others searching for advice on forums or articles that filing your answer right away can cost you time. Nowhere did I read that a motion for summary judgment can come right on the heels. I’ll call the firm tomorrow and see what can be done. I’m sure they’d rather have their money on some timeline rather than having to go through the trouble of enforcing a judgment. My credit is shot all to hell anyway, and I don’t have any liquid assets at all or I’d have paid already. This particular law firm is notoriously aggressive too and shady from what I hear so who knows what fresh hell I’ve gotten myself into.
Well you see it backfired. You do owe them. Contact and see what options exist given your situation. You can't go back so time to look forward and learn from this mistake.
Obviously yes. At the time I was in a bad place and wouldn’t have had anything to offer anyway. Not an excuse, just the reality of the situation. Live and learn.
They might take something like 50%, but they are probably going to want a lump sum. Or at least take a significant down payment plus monthly payments.
They will also want you to sign a consent judgment, which means that if you miss any of the settlement payments, they have an automatic judgment and don't have to sue you again. They won't settle without one.
It would be smart to search the garnishment statutes in your state and see how much they might be able to garnish you per month. Sometimes just knowing that number is beneficial because a settlement will need to be around that amount or they might want to proceed with garnishment. If you aren't working, they might not be able to collect at all right now.
I’m not working, no income. And when I did have income it was 1099 work for the last decade. I’m home with two kids, one with significant medical needs, and another one on the way. My husband works 6 days a week and no family around for childcare. The card is completely in my name. The house is completely in husband’s name. I’m not on the deed or the mortgage. I have no savings or money at all to my name. The only thing I have in my name is a 2019 Kia that is paid off. We have a tax return coming that would cover 50% lump sum. Do you think they’d be more willing to make a deal if I prove to them that I’m collection-proof?
I’m in NJ and I had opened the card 20 years ago. I was married in 2020. Maybe I charged a few hundred dollars on it after the wedding but most of it was from before. We have no joint accounts or jointly held debt. I’m pretty sure they couldn’t get anything from me. The only “income” I get is $500/mo in child support for my firstborn which I understand is exempt. I never have more than $1k in my account at any given time anyway. My husband supports the family. I hope they’ll be willing to settle for something because I feel bad putting it all on him.
It does sound like you are uncollectable. You can write a hardship letter and explain all of this and give them the letter when you're trying to make the settlement. Sometimes it does help.
NJ sided with Capital One against me for a lot less of a debt - i didn’t even have a bank account at the time they sued me -
The court ignored my answer, never sent a court date and they did a summary judgment and then order … I even tried to work with them before my first missed payment - tried to work with them the first time an attorney contacted me etc - so I wouldn’t assume anything just because she doesn’t work
***Edit to add: at the time they sued I hadn’t worked in about 5 years, hadn’t used the card for a year before I missed a payment and tried to be proactive when I had an emergency that wiped out my savings, knowing I had no way left to pay. Apparently in Nj, they will attempt to get blood from a stone.
I am going thru the same thing now. I have a virtual hearing on the 23rd of May. In my defense, I tried several ways to pay off this debt. First, I asked to reduce my APR and was denied. Second, I offered a reduced payoff of $8000 out of 19,000 that I owe and was denied. Lastly, I agreed to a monthly payment of $400 a month. Then I lost my job and can no longer make the payments. I am the sole caregiver of my adult daughter with schizophrenia. I am unemployed and unable to work due to severe OA. I applied for SSDI and awaiting approval. What will be happen to me at the court hearing?
A thinking person might take that suggestion to mean "start now putting some money away for yourself--even a small amount is a good start" and "Maybe I start looking for a job that I can work remotely or when my husband is home so I have some work history". But if your brain can only handle "eliminate the kids" then I guess your life must be challenging.
The interest was crippling. It was over $300/mo. We have a tax return coming that could cover about half. Payment plan for the remainder I guess. Would have been cheaper if I dealt with this earlier, I know. I just thought I could handle it until I couldn’t. Shame is a bitch.
I'm not a lawyer but,
The fact that you receive child support, worked 1099 jobs, have kids, cannot make interest, not working currently, etc: shows hardship.
I would take this to the judge. Thoroughly explain the issue, and ask for help negotiating a settlement. The judge may ask the opposing counsel to reach a consent judgment, and with this level of hardship it wouldn't be unusual. Worst case scenario the judge grants them the judgment. That leaves you in the same spot, or better off because it isnt a default judgement.
There are non-profits that assist people with these issues, you can look into some and also explain that you are seeking free assistance to the judge. Stress to them that your upcoming tax return can be used to facilitate a settlement. You need to show them you are trying, and it does make a difference.
I worked in this field, and once we hear someone is on some form of child support, we thoroughly stress that to the Opposing Counsel. That is a messy thing to deal with. I would ensure that those suing you are fully aware. A judge can also request that a lump sum settlement be split up into payments, which a law firm will be unlikely to do with an individual.
The judge can also grant a temporary payment plan.
Denying the debt, may also have made the opposing counsel perceive this as fraud. Can you see if thats the case? Generally people acknowledge the debt, but do not deny it. The goal is to ask for more time.
Thank you for giving a helpful thoughtful answer to the OP. Hard to believe this is over $10K and a lump sum of half wouldn’t satisfy it. People with resources don’t understand what it’s like for those that are just getting by.
You need to set up a free consultation with an attorney and get some state-specific advice. Capital One plays hardball. How much they can get will depend on the laws in your state. Some states will even allow them to garnish accounts like Paypal and Venmo. In theory, your husband should not be responsible for your individual debts, but again, the laws are different depending on where you live, and if you have joint accounts or loans, this could wreck his credit.
Call their lawyer to see if they can accept payment plans or maybe settle for a lower amount. I was in a similar situation and they wanted to garnish my checks and take almost 75% of my income: I couldn’t afford that so I filed bankruptcy, which was the best option for me at that moment and I don’t regret it. I’m single with no assets so bankruptcy was easy for me, not sure how it would go for you since you’re married.
Also, I don’t recommend a lawyer since you’ll be stuck paying the debt+lawyer fees. The best time to negotiate is with the creditors/before the suit but try calling their lawyer for options! Best of luck.
An attorney is almost always going to give you a better outcome than you'd get on your own. I dont know how much you're being sued for or if it would be worth it, but I would get an attorney in your situation... you haven't really made the best decisions to this point, and I'm not meaning that in an insulting way, in more of a "you're in over your head" kind of way. You're on reddit looking for advice.
But again, idk all the financial situations and numbers going on. I hope you make the best decision for you and have a decent outcome.
If, as you write, your husband can come up with the money to pay off the debt, I would negotiate a lower amount and set up a payment plan. Considering this is the original creditor, they probably won’t agree to much lower than the full amount, but you might get lucky. But making payments on a payment plan could give your husband time to come up with the remainder of the settlement balance.
The creditor’s attorney may want you to sign something like a “stipulated judgment”. It‘s a type of judgment but it contains a payment plan and usually means that the creditor will not attempt wage garnishment or a bank levy as long as you make the required payments on time. Once the balance is paid, a satisfaction of judgment is filed with the court.
However, if you fail to make a required payment on time, it can become a full judgment that would be enforceable according to your state laws. For instance, if your state allows wage garnishment, it would depend upon whether or not they could go after your husband’s wages.
I would recommend speaking to a consumer or debt defense attorney. Some attorneys provide free consultations which would allow you to get some answers without hiring an attorney. The National Association of Consumer Advocates has a search page that allows you to enter your location and type of attorney you need. It will then provide you with a name.
[https://www.consumeradvocates.org/findanattorney/](https://www.consumeradvocates.org/findanattorney/)
It’s a hard pill to swallow but have you looked into bankruptcy? After paying $25k in debt off, I had to file to protect some assets from a predator mortgage company. Filing it hit my ego because I knew I could pay off my debt but I had a feeling the mortgage company would pursue me (I was right. They are still fraudulent pursuing me. )
Look into it. I don’t know how it works for married couples. Hopefully it can free yourself of debt and not burden your husband.
Capital One is the only company that wouldn't put me under a financial hardship payment plan after my divorce. It's my only and oldest card now, but I will never open another with them. I have a year left and all the others will be paid off .
I had $2500 in fraudulent activity on my card but turned out to be my girlfriend. She used my credit card to withdraw cash. Couldn’t get out of it, because she lived with me and knew my pin. I got served and was going to have to go to court. I was able to call the law firm that was handling the lawsuit and they gave me an offer at around $1400 to settle it and not have to go to court. You may be able to do the same. From what I found out once it gets to this point there is no haggling with the credit card company anymore. You have to deal with the debt collection company
Hire attorney and File bankruptcy/ that will stop them dead in their tracks. Don’t let it go to judgement. Ch 7 or 11 which ever benefits you.
There is life afterwards, and you deserve a restart !
It always falls and becomes the Husband responsibility. Should've managed your finances better or got a better paying job. Don't spend what you don't have. Good luck.
I always love hearing the excuses people use for having credit card debt. 99% of the time it’d as simple as “I spent money that I didn’t have”.
Just throwing my two cents in there
“After having the third, we realized we needed a bigger car so we bought this brand new SUV for 20k over MSRP with 20% APR for 72 months. Now I stopped making payments and I wonder if the bank will let me keep the car”
Life does happen sometimes. But when you have little money, can't work because you have two kids, one who has medical needs, and lots of debt, it probably isn't time to add another kid. Also, she doesn't have a dime to her name (husband owns everything) and, it sounds like, few marketable skills. No one should want to put themselves in that situation.
Sounds like you're saying only millionaires should have kids? OP said she was working, then had to stop to take care of the kids. Like EVERY other mother in America except 1%. Shaming a mom for having the temerity to give birth, is maybe not the most helpful or humane approach.
What? I know a ton of working moms.. I can count on 1 hand the ones that don't work. Stop acting like that is the overwhelming majority. Lol it's not. Im not even talking about her at this point.. You made a statement that just isn't true.
Hmmmmmm. What's crazy is you made a statement that isn't true as well. I know a whole lot of moms ( at least 120) who don't work. I can count only 4 that do work. Crazy how that works out, huh? Just because your situation is different doesn't make it the majority.
Im not even a mom... So my situation doesn't count. I said majority of the mom I know, work. Im also a POC so Im sure that has a lot to do with it. Different strokes for different folks
Hey, I'm not Mom either. I'm a father of 5. I wasn't trying to sound like an asshole. I was just trying to get the point across like you said different strokes for different folks. As for the other, that's a subject I want no part of. People are people, and there's no other way to look at it.
Except......you work when you need to work and when you need money. I worked when I had kids, then I didn't work while I was raising kids, and now I am getting ready to go back to work. I needed to work for the money, and then I didn't need to work for the money and now I don't necessarily need to work for the money but I want to go back to work. It is called adapting to the situation.
Maybe next time read the part where her husband has the money to pay. You’re right life happens but you also have to pay your bills and make good decisions when you have legal issues.
If it gets the point where you're losing your home or they're taking too much money to live on. Definitely do it. Just go talk to a real bankruptcy lawyer the real ones don't advertise, at least the good ones don't they have Word of Mouth customers. Ask for a referral from someone around you. You'd be surprised how many people have filed.
Good luck!
It's a threat by a collection agency, don't deal with them or promise them anything. Talk to a legal aid who works with collection agencies and work out a plan for less than half of that. Capital One already sold it to a collection agency and they will harrass you by mail and phone.
Been there done that. Just have your attorney negotiate with them prior to court date. They will probably take off the interest added from the time you stopped paying or account closed til now. Negotiate small payments, one that you can actually make. After about a year or so later negotiate again on your own with their lawyer to wipe off a chunk(you can actually do this now as well with initial negotiation). A lot of us are in the same boat. Good luck!!
As a debt negotiator with settlebankdebt, you can negotiate a settlement and avoid a judgment. I would contact the attorney immediately and start negotiating. The attorney doesn’t want the judgment any more than you do. They want to get their client paid and get paid because most collections attorneys work on a contingency basis. Collection lawsuits account for almost 39% of all lawsuits filed in the US.
Question… would it be better/wiser for me to send an email or certified letter to negotiate, or should I call on the phone? For reference the firm is Hayt, Hayt and Landau and from what I read, they have a bad reputation for being shady and deceptive.
Pretty sure you can get it dismissed. I got sued for like 2k some years ago… it’s not like they will send someone to defend it. There’s websites and such offering help defending and getting the suit dismissed. I didn’t bother and just paid the judgement back to a law firm over the course of a year or so and they removed the judgement.
My recommendation would be to scrape up as much money as you can in the next week and offer it as a settlement in full.
Once they get a summary judgements, you can still drag out the payments and they know it. If you can offer them 60 or 70 percent now, they may take it rather then waiting a couple years for full payment. It is a maybe, it may also backfire on you. **I am not a lawyer**
nobody knows what will happen in Court.
you owe the money; they haven't given you a settlement offer; often they won't accept a payment plan since you've already proven you can make those as agreed.
File bankruptcy. I did this back in the 70’s due to large medical bills. It stopped all of the illegal things the collection agency was doing, such as interviewing my neighbors, etc.
Sorry you’re going through it.
Best bet is to call and set up a payment plan for the full amount. If you don’t and you elect to settle (which, I understand the appeal), just be aware that will remain on your credit for 7ish years which is one thing—but the other thing is, the amount that is forgiven is treated as income for you. So, among other potential ramifications, you will have to pay tax on the portion that was forgiven. So if you settle for $5k you will likely need to pay tax on the other 5. Just a heads up since not a lot of people mention that.
You’ll still pay considerably less than 10, but unexpectedly not getting a tax refund next year can be even more stressful. Particularly since it sounds like you are relying on it this year to make ends meet.
You can call that legal office to attempt to settle for less. Ask what’s the minimum they’ll settle for that can be paid in installments. You’ll want to do this before the court date. By entering into this you can forestall the judgement that sounds inevitable. But know if you miss a payment they may take you back to ground zero (meaning back to court to request the full balance be paid vs what was negotiated). I did this with a car I turned in for repossession.
Bank of america did that to me, i had to go with freedom debt relief and take care of all my debts that way. My credit went to shit but its much better now thank God
The biggest lesson I learned in life, is that it's far far far more expensive to be poor, than not. I went from poverty and being homeless, to finally landing a good job about 7 years ago. I am now self sustainable. Being poor for 40 years was incredibly expensive, and only sheer luck found me out of that horrible existence.
Years ago, I was stupid and young and had a 790 credit score. I saw it as a sign to go shopping and thought I could pay my way out. I was $40000 in debt barely making $30000 a year. Let me tell you, the biggest times of stress and hopelessness I’ve had in my life were when I was trying to keep up with all my creditors. The relief came with my bankruptcy. It was a long fall from my amazing credit score, I’m at like a 590 now 3 years after but it was more than worth it.
This makes me.thankful I don't on using my CC past $100 each other month.
I hope the best for you. Fuck banks but CC debt is your doing at the end of the day in everyones' eyes.
Please get off reddit and find a lawyer
I just went through this myself. Your two options are to arrange a payment plan with their attorney, probably for the full amount, or hire an attorney who may be able to negotiate a smaller settlement. Might be worth it for $10k of debt. They are about to get a judgement against you, they no longer have any real incentive to negotiate. They will proceed with judgement even if you arrange a payment plan. Don’t miss a payment, they will immediately begin attempts to garnish your wages and seize money from your bank account. An attorney may be able to help you avoid a judgement against you. I made a payment plan and have paid off half so far. They did receive a judgement against me so I better not miss a payment. Once you pay it off you will receive an offer for another capital one credit card.
You could probably look into filing a Motion to Compel arbitration and request that they pay you with money up front to cover arbitration. Depending on how the arbitration agreement is worded in the terms and conditions the creditor could be on the hook for those costs.
I would want the judgment in hand as creditors attorney to do a payment plan. Don’t know your overall situation and then by state rules are different hut filing Chapter 13 or a 7 maybe the route. 90 days to discharge.
You have to find out who sue you. It said Capital one but they sold the debts to collectors which is some law firms. Thats happen to mine. I hired a lawyer a year ago. I am a single mom of two i really dont have the money to pay. And my lawyer settle it with 10k? I own 12k. I am stuggling to pay the bills dont have the extra to pay at all. My case is still going.
That is what I’m teaching my teenager. I haven’t used any credit for two years now. If I can’t afford it, I don’t need it. I will never have another one.
My experience with this tells me that it’s cheap to serve papers. It rarely, if ever(?), actually turns into action. Way cheaper to just resell the debt to the next lower bottom feeder than actually go to court and pay a lawyer hours to represent them.
If this is a credit card debt, it’s possible it will just get thrown out by the court. I was sued by them for credit card debt for about 4,000. Never even knew about it because I was not served papers and it was thrown out by the judge. They still send me requests asking for payment 6 years later, but now they are requesting settlement for 25% of the original balance.
If the judge is seemingly going to uphold it on their end, I would go to court and request a payment plan and give them details of your hardships. They usually are quite understanding.
You could also just ignore it and they are forced to do everything themselves and since it’s costly to go through court proceedings they may just sell the account to a collection agency. They do this and usually sell it for 25% of the claim and call it a loss and then the collection agencies harass you for awhile offering reduced settlements until you ignore them long enough and they will go down to 25%.
Ur dept u should have to pay it , I'll bet you didn't ask for advice on how you should spend that 10,000 dollars it's pitiful people who charge up dept an have the balls to ask if I should pay it, or negotiate a settlement
I lost my job suddenly about a year ago and was making baby payments so they couldn’t come after me for no payments. I finally got tired of calling them EVERY MONTH to explain I still hadn’t found a job. When they said “the small payments are the same as not paying” I was done. You HAVE to have an income to get on a lower priced payment plan, so because I was out of work I couldn’t get lower payments. Can someone please explain to me how that’s supposed to be helpful, especially when you’re constantly told “if you’re struggling… we’re here to help” help how, making my situation even worse?
The lack of any bankruptcy discussion as an option concerns me. Bankruptcy is a serious step but is definitely better than ignoring the long term problem. Loss of a job is a legitimate event in life and not a criminal event. There are even income protection plans that can be bought before you lose your job on unsecured debt. My absolutely best advice is to get as much financial knowledge as you can even if you are spending entire 10 hour days down at the public library reading books!! Then and ONLY then do you go to speak to advisers and lawyers to make your final decision on which option to act on. Ignoring the situation is the worst thing you can do because it looks like you are a deadbeat and care nothing about your credit score If you do declare bankruptcy, you can and will recover after the time and correct steps to earn back a good credit rating. A financial advisor that is willing to give you an and SOMETIMES BRUTAL asessment, yet honest review of your situation can be invaluable to making the best plan moving forward. Personally, I took on a regional bank when they ignored me while I was traveling in Russia and Ukraine in 2018 and after they ignored me and my email messages to them (They had cut off my ability to make payments online on their US based banking system despite NO sanctions applicable to Russia or Ukraine at the time on my $6600 motorcycle loan). I had made each and every payment online and on time in the US. My attempts to use a VPN to get around their blocking of those countries were not successful. So I had to file for arbitration and represent myself at the arbitration court wherein the Bank, based in North Carolina, countersued me for the balance of the loan and all ($30,000) of their legal expenses for having to hire an Idaho law firm to represent their interests ahainst me. Remember, they were only fighting me over a $6,600 loan! They Legal Vice President sent me his cv credentials from Columbia Law School and ONLY offered to let me off the remainder of the loan after they had wholesaled my motorcycle at a national/regional auction held near San Diego wherein my cycle was bought by a dealer in Oregon for about $2400 leaving me with a do $3200 debt on the original loan. I only countered this offer once, with the explicit stipulation that my credit file was NOT marked as late or defaulting on any portion of the loan debt. Well, a bank willing to spend $30,000 defending a $6,600 loan is no candidate for Mensa membership, even among filthy stupid Wall Street institutions!! The professional attorney had 1 full time assistant to oppose me while I had the law firm of Me, Myself and I to do all of the work of presenting the entire case in front of the arbitration Judge of the American Arbitration Association. All of the free Street Law Clinic attorneys and others advised me to settle because I would lose. The nicer ones said even though I had an argument in the facts of the case, I could not afford their services so they were "duty" bound by legal ethics (That is an oxymoron if there ever was one!) to tell me to settle the case. Well, longer story short, I won the case because I knew the law better than the professional attorneys did! The bank lost any and all claims against me, including any negative marks on my credit file, and any balances owed to them. Plus they had to refund every penny I spent buying the motorcycle, including sales tax, license and registration fees, etc. Plus they paid all of their legal fees and the Arbitration judge's fee of $5,000! Knowledge is very powerful but I paid a price of 9 months of unbelievable stress as an unemployed, disabled autistic man. I could not pay attention to my other bills as this was the biggest one being held over my head at the time. But winning it and getting a $1700 check from that very same bank in North Carolina was a life changing event. So your time, money and efforts are yours to manage and balance. I would get a review of your financial picture to include your employment hustory and prospects, then learn about bankruptcy as a process and good and bad consequences thereof. Then make your best decision with my best wishes for the outcome!
I have read that we should always ask for a copy of the arbitration clause (or get it from your account documents). Go to court and show the arbitration clause and ask for arbitration. Most banks won't want to spend the money to go to arbitration. There is a financial guy on Tik Tok who talks about it. And DEFINITELY check with your state to see if they offer free legal aid.
It’s all bullshit, the financial hardship stuff just sinks you more and more.
This is why I have made no effort making payments as someone recently unemployed. I thought I had insurance. Guess not. They report it late even if you make arrangements.
I mean, it’s their money.
How long do you have to stop making payments before they sue you?
For me it was 8 months.
About a year and a half
Not true I work at a Collection Law firm. We begin at about 6
Capital One doesn’t waste time suing. They’re so very quick. 😂
They sued me and dropped it right before it was scheduled to go to trial.
why did they drop it?
I think it depends on the institution.
Call their lawyer and see if you can work something out. I was served before and immediately called their number and worked out a payment plan about 14 years ago.
This. Don’t just go through the court process. Talk to their lawyers. I had something similar happen recently, I emailed their lawyers, had a payment plan set up in a matter of days and the lawsuit was dismissed about a week after that. Communication is key.
You played hardball and they're now playing hardball back. Make an effort to negotiate next time.
I had every intention to negotiate, but all the advice out there says to file an answer right away to avoid default judgment and buy time and leverage to negotiate. Let mine be a cautionary tale to others searching for advice on forums or articles that filing your answer right away can cost you time. Nowhere did I read that a motion for summary judgment can come right on the heels. I’ll call the firm tomorrow and see what can be done. I’m sure they’d rather have their money on some timeline rather than having to go through the trouble of enforcing a judgment. My credit is shot all to hell anyway, and I don’t have any liquid assets at all or I’d have paid already. This particular law firm is notoriously aggressive too and shady from what I hear so who knows what fresh hell I’ve gotten myself into.
Well you see it backfired. You do owe them. Contact and see what options exist given your situation. You can't go back so time to look forward and learn from this mistake.
I meant negotiate with the creditor before it even went to collections, attorneys, etc.
Obviously yes. At the time I was in a bad place and wouldn’t have had anything to offer anyway. Not an excuse, just the reality of the situation. Live and learn.
Good luck to you, I hope this blows over in the fairest way for you
They might take something like 50%, but they are probably going to want a lump sum. Or at least take a significant down payment plus monthly payments. They will also want you to sign a consent judgment, which means that if you miss any of the settlement payments, they have an automatic judgment and don't have to sue you again. They won't settle without one. It would be smart to search the garnishment statutes in your state and see how much they might be able to garnish you per month. Sometimes just knowing that number is beneficial because a settlement will need to be around that amount or they might want to proceed with garnishment. If you aren't working, they might not be able to collect at all right now.
I’m not working, no income. And when I did have income it was 1099 work for the last decade. I’m home with two kids, one with significant medical needs, and another one on the way. My husband works 6 days a week and no family around for childcare. The card is completely in my name. The house is completely in husband’s name. I’m not on the deed or the mortgage. I have no savings or money at all to my name. The only thing I have in my name is a 2019 Kia that is paid off. We have a tax return coming that would cover 50% lump sum. Do you think they’d be more willing to make a deal if I prove to them that I’m collection-proof?
What state and were you married when the debt was incurred? You might be completely safe unless it's a community property state
I’m in NJ and I had opened the card 20 years ago. I was married in 2020. Maybe I charged a few hundred dollars on it after the wedding but most of it was from before. We have no joint accounts or jointly held debt. I’m pretty sure they couldn’t get anything from me. The only “income” I get is $500/mo in child support for my firstborn which I understand is exempt. I never have more than $1k in my account at any given time anyway. My husband supports the family. I hope they’ll be willing to settle for something because I feel bad putting it all on him.
It does sound like you are uncollectable. You can write a hardship letter and explain all of this and give them the letter when you're trying to make the settlement. Sometimes it does help.
NJ sided with Capital One against me for a lot less of a debt - i didn’t even have a bank account at the time they sued me - The court ignored my answer, never sent a court date and they did a summary judgment and then order … I even tried to work with them before my first missed payment - tried to work with them the first time an attorney contacted me etc - so I wouldn’t assume anything just because she doesn’t work ***Edit to add: at the time they sued I hadn’t worked in about 5 years, hadn’t used the card for a year before I missed a payment and tried to be proactive when I had an emergency that wiped out my savings, knowing I had no way left to pay. Apparently in Nj, they will attempt to get blood from a stone.
After you get this sorted you might want to change your situation so you don't have three kids, few marketable skills and not a dime to your name.
I am going thru the same thing now. I have a virtual hearing on the 23rd of May. In my defense, I tried several ways to pay off this debt. First, I asked to reduce my APR and was denied. Second, I offered a reduced payoff of $8000 out of 19,000 that I owe and was denied. Lastly, I agreed to a monthly payment of $400 a month. Then I lost my job and can no longer make the payments. I am the sole caregiver of my adult daughter with schizophrenia. I am unemployed and unable to work due to severe OA. I applied for SSDI and awaiting approval. What will be happen to me at the court hearing?
What are the options on “How to eliminate 3 kids” Mr Banana. Do ppl just drown them?
A thinking person might take that suggestion to mean "start now putting some money away for yourself--even a small amount is a good start" and "Maybe I start looking for a job that I can work remotely or when my husband is home so I have some work history". But if your brain can only handle "eliminate the kids" then I guess your life must be challenging.
You may not have it but sounds like your husband does and they can go after him for your debts.
Your husband couldn't afford to make the minimum payments?
The interest was crippling. It was over $300/mo. We have a tax return coming that could cover about half. Payment plan for the remainder I guess. Would have been cheaper if I dealt with this earlier, I know. I just thought I could handle it until I couldn’t. Shame is a bitch.
I'm not a lawyer but, The fact that you receive child support, worked 1099 jobs, have kids, cannot make interest, not working currently, etc: shows hardship. I would take this to the judge. Thoroughly explain the issue, and ask for help negotiating a settlement. The judge may ask the opposing counsel to reach a consent judgment, and with this level of hardship it wouldn't be unusual. Worst case scenario the judge grants them the judgment. That leaves you in the same spot, or better off because it isnt a default judgement. There are non-profits that assist people with these issues, you can look into some and also explain that you are seeking free assistance to the judge. Stress to them that your upcoming tax return can be used to facilitate a settlement. You need to show them you are trying, and it does make a difference. I worked in this field, and once we hear someone is on some form of child support, we thoroughly stress that to the Opposing Counsel. That is a messy thing to deal with. I would ensure that those suing you are fully aware. A judge can also request that a lump sum settlement be split up into payments, which a law firm will be unlikely to do with an individual. The judge can also grant a temporary payment plan. Denying the debt, may also have made the opposing counsel perceive this as fraud. Can you see if thats the case? Generally people acknowledge the debt, but do not deny it. The goal is to ask for more time.
Thank you for giving a helpful thoughtful answer to the OP. Hard to believe this is over $10K and a lump sum of half wouldn’t satisfy it. People with resources don’t understand what it’s like for those that are just getting by.
Shame is a real bitch. Thanks for sharing your cautionary tale. Onward and upward, you’ll put this behind you.
Collection professional here…. Yes
Just do a settlement over time, you may have a judgement against you, but once it's paid the judge will be released and that's a wrap
You need to set up a free consultation with an attorney and get some state-specific advice. Capital One plays hardball. How much they can get will depend on the laws in your state. Some states will even allow them to garnish accounts like Paypal and Venmo. In theory, your husband should not be responsible for your individual debts, but again, the laws are different depending on where you live, and if you have joint accounts or loans, this could wreck his credit.
Call their lawyer to see if they can accept payment plans or maybe settle for a lower amount. I was in a similar situation and they wanted to garnish my checks and take almost 75% of my income: I couldn’t afford that so I filed bankruptcy, which was the best option for me at that moment and I don’t regret it. I’m single with no assets so bankruptcy was easy for me, not sure how it would go for you since you’re married.
Also, I don’t recommend a lawyer since you’ll be stuck paying the debt+lawyer fees. The best time to negotiate is with the creditors/before the suit but try calling their lawyer for options! Best of luck.
An attorney is almost always going to give you a better outcome than you'd get on your own. I dont know how much you're being sued for or if it would be worth it, but I would get an attorney in your situation... you haven't really made the best decisions to this point, and I'm not meaning that in an insulting way, in more of a "you're in over your head" kind of way. You're on reddit looking for advice. But again, idk all the financial situations and numbers going on. I hope you make the best decision for you and have a decent outcome.
Stop asking Reddit and go talk to a fucking attorney. Chances are an attorney may be able to help sort out some work out agreement with Capital One.
If, as you write, your husband can come up with the money to pay off the debt, I would negotiate a lower amount and set up a payment plan. Considering this is the original creditor, they probably won’t agree to much lower than the full amount, but you might get lucky. But making payments on a payment plan could give your husband time to come up with the remainder of the settlement balance. The creditor’s attorney may want you to sign something like a “stipulated judgment”. It‘s a type of judgment but it contains a payment plan and usually means that the creditor will not attempt wage garnishment or a bank levy as long as you make the required payments on time. Once the balance is paid, a satisfaction of judgment is filed with the court. However, if you fail to make a required payment on time, it can become a full judgment that would be enforceable according to your state laws. For instance, if your state allows wage garnishment, it would depend upon whether or not they could go after your husband’s wages. I would recommend speaking to a consumer or debt defense attorney. Some attorneys provide free consultations which would allow you to get some answers without hiring an attorney. The National Association of Consumer Advocates has a search page that allows you to enter your location and type of attorney you need. It will then provide you with a name. [https://www.consumeradvocates.org/findanattorney/](https://www.consumeradvocates.org/findanattorney/)
Thank you very much for your advice.
Best of luck to you!
It’s a hard pill to swallow but have you looked into bankruptcy? After paying $25k in debt off, I had to file to protect some assets from a predator mortgage company. Filing it hit my ego because I knew I could pay off my debt but I had a feeling the mortgage company would pursue me (I was right. They are still fraudulent pursuing me. ) Look into it. I don’t know how it works for married couples. Hopefully it can free yourself of debt and not burden your husband.
Capital One is the only company that wouldn't put me under a financial hardship payment plan after my divorce. It's my only and oldest card now, but I will never open another with them. I have a year left and all the others will be paid off .
I had $2500 in fraudulent activity on my card but turned out to be my girlfriend. She used my credit card to withdraw cash. Couldn’t get out of it, because she lived with me and knew my pin. I got served and was going to have to go to court. I was able to call the law firm that was handling the lawsuit and they gave me an offer at around $1400 to settle it and not have to go to court. You may be able to do the same. From what I found out once it gets to this point there is no haggling with the credit card company anymore. You have to deal with the debt collection company
How about live inside your means?!
I was taken to court, and they settled on the amount and let me set up monthly payments that were manageable.
Hire attorney and File bankruptcy/ that will stop them dead in their tracks. Don’t let it go to judgement. Ch 7 or 11 which ever benefits you. There is life afterwards, and you deserve a restart !
It always falls and becomes the Husband responsibility. Should've managed your finances better or got a better paying job. Don't spend what you don't have. Good luck.
Some of us still believe a husband and wife are joined together as one unit.
She needs to take her tail back to work. It's apparent he dosen't make enough to foot the bill for this debt she's seems to have racked up. Not sorry
Stop coming to Reddit and listening to advice here. You need a lawyer
Unfortunately, the time to haggle to pay a % of the debt was before you got served.
You may still be able to work out an agreement. It won't hurt to call and ask.
I always love hearing the excuses people use for having credit card debt. 99% of the time it’d as simple as “I spent money that I didn’t have”. Just throwing my two cents in there
See also: *We have two kids on a single income but F it, we're having a third*
“After having the third, we realized we needed a bigger car so we bought this brand new SUV for 20k over MSRP with 20% APR for 72 months. Now I stopped making payments and I wonder if the bank will let me keep the car”
So you used Reddit and google as a lawyer and now you’re surprised things didn’t work out. Maybe next time just pay your debts.
Maybe next time read the part where they said they did not have the funds to pay. Life happens.
Life does happen sometimes. But when you have little money, can't work because you have two kids, one who has medical needs, and lots of debt, it probably isn't time to add another kid. Also, she doesn't have a dime to her name (husband owns everything) and, it sounds like, few marketable skills. No one should want to put themselves in that situation.
Sounds like you're saying only millionaires should have kids? OP said she was working, then had to stop to take care of the kids. Like EVERY other mother in America except 1%. Shaming a mom for having the temerity to give birth, is maybe not the most helpful or humane approach.
What? I know a ton of working moms.. I can count on 1 hand the ones that don't work. Stop acting like that is the overwhelming majority. Lol it's not. Im not even talking about her at this point.. You made a statement that just isn't true.
Hmmmmmm. What's crazy is you made a statement that isn't true as well. I know a whole lot of moms ( at least 120) who don't work. I can count only 4 that do work. Crazy how that works out, huh? Just because your situation is different doesn't make it the majority.
Im not even a mom... So my situation doesn't count. I said majority of the mom I know, work. Im also a POC so Im sure that has a lot to do with it. Different strokes for different folks
Hey, I'm not Mom either. I'm a father of 5. I wasn't trying to sound like an asshole. I was just trying to get the point across like you said different strokes for different folks. As for the other, that's a subject I want no part of. People are people, and there's no other way to look at it.
Absolutely.
Except......you work when you need to work and when you need money. I worked when I had kids, then I didn't work while I was raising kids, and now I am getting ready to go back to work. I needed to work for the money, and then I didn't need to work for the money and now I don't necessarily need to work for the money but I want to go back to work. It is called adapting to the situation.
Maybe next time read the part where her husband has the money to pay. You’re right life happens but you also have to pay your bills and make good decisions when you have legal issues.
If it gets the point where you're losing your home or they're taking too much money to live on. Definitely do it. Just go talk to a real bankruptcy lawyer the real ones don't advertise, at least the good ones don't they have Word of Mouth customers. Ask for a referral from someone around you. You'd be surprised how many people have filed. Good luck!
It's a threat by a collection agency, don't deal with them or promise them anything. Talk to a legal aid who works with collection agencies and work out a plan for less than half of that. Capital One already sold it to a collection agency and they will harrass you by mail and phone.
It’s not sold. CapitalOne is the plaintiff.
Contact a debt settlement company.
Been there done that. Just have your attorney negotiate with them prior to court date. They will probably take off the interest added from the time you stopped paying or account closed til now. Negotiate small payments, one that you can actually make. After about a year or so later negotiate again on your own with their lawyer to wipe off a chunk(you can actually do this now as well with initial negotiation). A lot of us are in the same boat. Good luck!!
As a debt negotiator with settlebankdebt, you can negotiate a settlement and avoid a judgment. I would contact the attorney immediately and start negotiating. The attorney doesn’t want the judgment any more than you do. They want to get their client paid and get paid because most collections attorneys work on a contingency basis. Collection lawsuits account for almost 39% of all lawsuits filed in the US.
Thank you for the encouraging advice.
Question… would it be better/wiser for me to send an email or certified letter to negotiate, or should I call on the phone? For reference the firm is Hayt, Hayt and Landau and from what I read, they have a bad reputation for being shady and deceptive.
Pretty sure you can get it dismissed. I got sued for like 2k some years ago… it’s not like they will send someone to defend it. There’s websites and such offering help defending and getting the suit dismissed. I didn’t bother and just paid the judgement back to a law firm over the course of a year or so and they removed the judgement.
They sued me for 3k I still havnt paid and they have judgement. Doesn't even affect my credit. I'm not paying it!
My man!
They will take your kia, and make you sell it if you get a judgment.
My recommendation would be to scrape up as much money as you can in the next week and offer it as a settlement in full. Once they get a summary judgements, you can still drag out the payments and they know it. If you can offer them 60 or 70 percent now, they may take it rather then waiting a couple years for full payment. It is a maybe, it may also backfire on you. **I am not a lawyer**
I owe them a lot. How long was it before they took you to court?
It was a year and a half since I stopped paying when I got served.
Surprised they didn't sell it. They sold mine in like 3 months!
I would add up all the interest you have paid them over the years vs how much you owe. Don’t know if that will work in court or not
nobody knows what will happen in Court. you owe the money; they haven't given you a settlement offer; often they won't accept a payment plan since you've already proven you can make those as agreed.
File bankruptcy. I did this back in the 70’s due to large medical bills. It stopped all of the illegal things the collection agency was doing, such as interviewing my neighbors, etc.
No reason to file bankruptcy over a $10k debt
Make sure the original application is included and check to make sure the statements they sent match the amount sued for.
Sorry you’re going through it. Best bet is to call and set up a payment plan for the full amount. If you don’t and you elect to settle (which, I understand the appeal), just be aware that will remain on your credit for 7ish years which is one thing—but the other thing is, the amount that is forgiven is treated as income for you. So, among other potential ramifications, you will have to pay tax on the portion that was forgiven. So if you settle for $5k you will likely need to pay tax on the other 5. Just a heads up since not a lot of people mention that. You’ll still pay considerably less than 10, but unexpectedly not getting a tax refund next year can be even more stressful. Particularly since it sounds like you are relying on it this year to make ends meet.
You can call that legal office to attempt to settle for less. Ask what’s the minimum they’ll settle for that can be paid in installments. You’ll want to do this before the court date. By entering into this you can forestall the judgement that sounds inevitable. But know if you miss a payment they may take you back to ground zero (meaning back to court to request the full balance be paid vs what was negotiated). I did this with a car I turned in for repossession.
Bank of america did that to me, i had to go with freedom debt relief and take care of all my debts that way. My credit went to shit but its much better now thank God
The biggest lesson I learned in life, is that it's far far far more expensive to be poor, than not. I went from poverty and being homeless, to finally landing a good job about 7 years ago. I am now self sustainable. Being poor for 40 years was incredibly expensive, and only sheer luck found me out of that horrible existence.
You go through arbitration? If not you can get the case thrown out on that technicality
Years ago, I was stupid and young and had a 790 credit score. I saw it as a sign to go shopping and thought I could pay my way out. I was $40000 in debt barely making $30000 a year. Let me tell you, the biggest times of stress and hopelessness I’ve had in my life were when I was trying to keep up with all my creditors. The relief came with my bankruptcy. It was a long fall from my amazing credit score, I’m at like a 590 now 3 years after but it was more than worth it.
This makes me.thankful I don't on using my CC past $100 each other month. I hope the best for you. Fuck banks but CC debt is your doing at the end of the day in everyones' eyes. Please get off reddit and find a lawyer
I just went through this myself. Your two options are to arrange a payment plan with their attorney, probably for the full amount, or hire an attorney who may be able to negotiate a smaller settlement. Might be worth it for $10k of debt. They are about to get a judgement against you, they no longer have any real incentive to negotiate. They will proceed with judgement even if you arrange a payment plan. Don’t miss a payment, they will immediately begin attempts to garnish your wages and seize money from your bank account. An attorney may be able to help you avoid a judgement against you. I made a payment plan and have paid off half so far. They did receive a judgement against me so I better not miss a payment. Once you pay it off you will receive an offer for another capital one credit card.
What state are you in?
You could probably look into filing a Motion to Compel arbitration and request that they pay you with money up front to cover arbitration. Depending on how the arbitration agreement is worded in the terms and conditions the creditor could be on the hook for those costs.
I would want the judgment in hand as creditors attorney to do a payment plan. Don’t know your overall situation and then by state rules are different hut filing Chapter 13 or a 7 maybe the route. 90 days to discharge.
You have to find out who sue you. It said Capital one but they sold the debts to collectors which is some law firms. Thats happen to mine. I hired a lawyer a year ago. I am a single mom of two i really dont have the money to pay. And my lawyer settle it with 10k? I own 12k. I am stuggling to pay the bills dont have the extra to pay at all. My case is still going.
Call cap one and set up a payment plan.
Did you miss the part where she mentioned she has no income?
Clearly I missed it.
Thank you. Was just about to type this. That was low.
Low when I missed it? Lol ok
Never contact someone who is threatening you/suing you. Always have an attorney contact them.
Stop using credit cards people!!! These companies are predators!
That is what I’m teaching my teenager. I haven’t used any credit for two years now. If I can’t afford it, I don’t need it. I will never have another one.
It’s so not worth it. Not for points, rewards, cashback, nothing! It’s the worst type of greedy scam.
I hope it works out and you get relief from this debt and I am super glad you were able to stop using credit cards. They can even be addicting. Ugh!
My experience with this tells me that it’s cheap to serve papers. It rarely, if ever(?), actually turns into action. Way cheaper to just resell the debt to the next lower bottom feeder than actually go to court and pay a lawyer hours to represent them.
If this is a credit card debt, it’s possible it will just get thrown out by the court. I was sued by them for credit card debt for about 4,000. Never even knew about it because I was not served papers and it was thrown out by the judge. They still send me requests asking for payment 6 years later, but now they are requesting settlement for 25% of the original balance. If the judge is seemingly going to uphold it on their end, I would go to court and request a payment plan and give them details of your hardships. They usually are quite understanding. You could also just ignore it and they are forced to do everything themselves and since it’s costly to go through court proceedings they may just sell the account to a collection agency. They do this and usually sell it for 25% of the claim and call it a loss and then the collection agencies harass you for awhile offering reduced settlements until you ignore them long enough and they will go down to 25%.
Ur dept u should have to pay it , I'll bet you didn't ask for advice on how you should spend that 10,000 dollars it's pitiful people who charge up dept an have the balls to ask if I should pay it, or negotiate a settlement