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Home > Ask The Get Out of Debt Experts > Capital One is Suing Me and I’m Really Depressed. – Genie

Capital One is Suing Me and I’m Really Depressed. – Genie

Genie

“Dear Steve,

Hi, I’m so glad I found this site. I’m 26, just graduated from school…and I have a ton of debt which is driving me crazy.

Right now, I have a few collections agencies after me. Last week, I go home on Friday and find 3 letters- 2 of them being summons and one from the lawyer who is about to sue me for $1250 on a credit card bill from Cap. 1 which was originally $650 which I could not make minimum payments for.

I’ve been trying to keep up with payments for other loans and bills. It’s getting really hard for me now to keep up. I really want to settle at least this one with a lump sum amount- which is a bit less than what their suing me for.

I want to call to make the offer,but at the same time, I’m afraid if i say the wrong thing, it’ll backfire and I’ll end up paying more or having the debt unsettled. Please….I need your help. I now have 20-25 days to respond to the summons. I’m also afraid that if I pay this one, Cap. will come after me again for the other cc bill, which I may not be able to pay.

What should I do? I’m really depressed and going crazy over this. As I mentioned, I also have other debts in collections aside from this one. The other biggest one that I’m worried about is a student loan- which I think is a federal loan…I’ve been getting letters saying they’ll garnish my wages…but I have no full time job. I can’t afford to be sued by them either. I really really really want to settle these debts, but I dont have any money. Thanks for your help

Can You help me? How do I go about with settling these debts- starting with at least the one i’m being sued for….Please help.

Genie”

Don’t miss our free Get Out of Debt – “How To” Guide Series on a number of topics, for loads of practical advice, tips, and help to beat back debt. – Click Here

The Answer

 

Dear Genie,

I’m really glad you found my site as well so I could help you with some practical advice.

This is obviously a situation that did not begin last week. For all of these debts to be in this stage it has been brewing for a while. The most serious of the debts is the student loan. Student loans have the most unfettered powers to inflict real pain on your financial life.

If you could update me on the total amount of debt that you owe, not including the student loans I could give you a more detailed answer. Just update me in the comments section of this question.

The first step is to get a plan in place to get your student loans out of default. Since these are government backed loans I suggest you look into the IBR option available. Loads of information is available here on the Income Based Repayment (IBR) program.

Now, how we deal with the other debt is unknown till you give me more information but one thing is for certain, do not settle any debt until we have a master plan.

I understand the emotional drivers of wanting to make this CapOne debt go away but using available funds to settle one debt in a bigger problem is not a solution. It’s like fixing one crack of many in the face of a dam.

Right now this all feels immensely scary and leaves you naturally depressed and in a panic. All of those emotions are perfectly normal. I’ve lived through it myself. But, those feelings are not a true reflection of the technical aspects of your financial situation, but reflect your emotional state of mind.

When you suffer from money troubles the emotions are much more powerful than the facts of the realities and that leads us to feel very odd in many ways.

Update me in the comments section with the total debt you owe and let’s take this to the next step. Once we come up with a plan for you to implement you will begin to feel better.

Big Hug!

Capital One is Suing Me and Im Really Depressed.   Genie
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About Steve Rhode

Steve Rhode
Steve Rhode is the Get Out of Debt Guy and has been helping good people with bad debt problems since 1994. You can learn more about Steve, here.
  • em

    Dear Mr. Steve

    I’m so glad that i found your website, i have a question, can i still file a bankruptcy even thou those 2 of my credit cards already sue me?

    Capital One and HSBC sue me :( and i was so depressed and stress because of this situation.

    Em

  • Linda

    Capital One charged off my debt, sold it to a collection agency who has ultimately sent it to an attorney…they got a judgment and I tried to get the judgment thrown out but no go,,,now at the appeals phase,,,should I or shouldn’t I move forward

  • Wheelchairs

    Superb blog post, I have book marked this internet site so ideally I’ll see much more on this subject in the foreseeable future!

    Wheelchairs

  • SeanDSLegalPlan

    Steve- I believe Prepaid MAY offer a 25% discount on regular legal fees- She needs to contact PPL though for that information as they may use their own network. I would then go to your YellowPages & compare the price- Inquire, but the initial consultation should be free.

  • Sweetchic2012

    Hi, I just found out last week that I am being sued by Capitol One for a $1400 on a very old credit card. I would like to stay out of court and offer to make payments. Will they do that? I can afford $75.00 this month and should have another $500.00 after I am paid on 2/4/11. I would be able to pay the remaining once I receive my tax return. I already filed, but it will not come in before the court date. Should I draft this in a letter and outline the terms so they do not garnish my wages? I really don’t want my employer to know about this, it is embarrassing.

    Please let me know what i should do . . . I have court on 2/8/2011.

    Thanks for your help. Best Regards,

    T

  • Wendy

    Hello Steve, I was sued by 2 credit cards and was served with papers to appear in court. I didnt show up to court because like many other people I was scared, well that just made it worse because Cap.1 turned my case over to a local law firm and they are considering going after my wages and assets. I had a condo but its in forclosure ( forclosed in March 2009) and my car I make car payments on it. I feel that I lost these battles and they will take whatever they want from my paycheck. Do I have a last option? I owe over $100,000.00 in students loans to Sallie Mae and private loans, and owe about $35,000.00 in credit cards. I continue to pay the small department store credit cards. Please advise. Your advice will be greatly appreciated.

    • http://GetOutOfDebt.org Steve Rhode

      Wendy,

      You need to go see a bankruptcy attorney, ASAP. Stop letting all of this stuff roll over you and take charge. Click here to find a local bankruptcy attorney you like. Bankruptcy won’t get rid of the student loans but it will stop all suits and eliminate your credit card debt so you can get this situation under control.

      Steve

      • Wendy

        Steve thank you for replying so quick I can not thank you enough. I have 5 credit cards that I stopped paying: 1.CHASE VISA 2.SONY VISA 3. SEARS MC 4. JUNIPER MC 5.CHASE VISA. About how much does a bankruptcy lawyer cost? I have pre-paid legal.

        –Wendy

      • http://GetOutOfDebt.org Steve Rhode

        Wendy

        Pre-paid legal won’t pay for bankruptcy. You’ll need to contact a local bankruptcy attorney and ask.

        Steve

      • Anonymous

        Steve- I believe Prepaid MAY offer a 25% discount on regular legal fees- She needs to contact PPL though for that information as they may use their own network. I would then go to your YellowPages & compare the price- Inquire, but the initial consultation should be free.

  • Linda Franchi

    I have gone from a credit score of 780 just 3 years ago to now getting sued by Bank Of America. All of my creditors have been wonderful.They have allowed me to use their hardship plans and I am able to slowly pay them off. Except for the Law Office of Howard Lee Schiff for Bank of America. I have never denied that I owe this money,however they will not allow me to set up a payment schedule. They said they must have in full or they take me to court.Because I have been wanting them to see that I want to repay them. I have been sending them $25.00 a month.I would like to send more, but not having an agreement made makes me nervous to send more than $25.00 a month. They have cashed the check every month. I just wanted to show good faith.I just got the First set of Interrogratories, why continue to sue me, won’t the judge see that I cannot pay in full also and they will have to set me a plan, why waste the money, time, effort on me, somene who admits her mistake and wants to right it, but, not allowed. What will happpen next? If the judge wanted to be as mean as these people what is the worst that can happen? Why do they cash my check every month, but deny me a payment plan. Thank You very much, I wish I could afford a lawyer as I have a feeling it is going to be very scary for me alone in that court room.

  • danielle

    I became unemployed in November of 2008 and stopped making credit card payments on my capital one card – I called because I had payment protection within days of becoming unemployed. I was told I had to wait thirty days, so I did & then I was told I was behind but they would mail the paperwork for the claim – I never recieved it.

    today I recieved a summons to reply within 35 days regarding the $1600 debt. I am still unemployed and my husband barely makes enough to pay our mortgage and bills. I don’t know whether to call & try to make payment arrangements with the law firm (collection agentcy) or not. I can’t afford an attorney & I’m not sure what to do.
    Please help. Thank you.

  • Dawn

    Hi, I am 24 and I have a credit card with Capital one which I have not paid on for 8 months now. I just dont have the extra money to pay on the card. I have been barely keeping my head above water with the bills I already have. Today I received a call from a Collection agency. They were yelling at me and telling me I was young and dont know what I am doing. They told me that Cap one is going to sue me for the $5500 I owe. They also started calling my family members and leaving messages on their home phones. They even went as far as to ask for my Father. I dont even live with my parents. I told the collection agency that they can not call my family and they told me that they are going to keep calling in order to get in touch with me. She kept yelling at me and saying what are you going to do about this. I couldn’t even get a word in so I hung up. I read that you should never admit to a debt to a collector so I just told them that I would call capital one. They continued to tell me that I cant call cap one because they dont want to talk to me and they wont take my calls. Which i know cant be true.

    I am actually really scared right now because I dont want to get sued and I dont know what to do. I am going into a debt management program and it starts in January. Now i am afraid that cap one wont accept the program. What should I do and what are my next steps. I can use all the advice I can get.

    Thanks so much!

    • http://GetOutOfDebt.org Steve Rhode

      Dawn,

      My bet is Capital One charged off your debt and sold it to the collection agency. The tactics you describe would not be authorized by Capital One but would be the type of pressure tactic used by a bad debt buyer.

      Since you are barely keeping your head above water with the bills you currently have, I really don’t think a debt management program is going to be enough to solve this problem for you. It sure sounds like the last thing you need is another payment for this Cap One debt on top of debts you can barely make.

      I honestly don’t see a logical exit from this without bankruptcy. You should click here to find a local bankruptcy attorney you like. Make an appointment to go in and see the attorney and discuss your situation.

      Bankruptcy will give you protection from the collection company, terminate your debts, and give you a fresh start.

      Big hug.

      Steve

      • Sweetchic2012

        Hi, I just found out last week that I am being sued by Capitol One for a $1400 on a very old credit card. I would like to stay out of court and offer to make payments. Will they do that? I can afford $75.00 this month and should have another $500.00 after I am paid on 2/4/11. I would be able to pay the remaining once I receive my tax return. I already filed, but it will not come in before the court date. Should I draft this in a letter and outline the terms so they do not garnish my wages? I really don’t want my employer to know about this, it is embarrassing.

        Please let me know what i should do . . . I have court on 2/8/2011.

        Thanks for your help. Best Regards,

        T

  • Lisa

    Hi, I just found out this week that I am being sued by Capitol One for a $2400 on a very old credit card. I would like to stay out of court and offer to make payments. How much should I offer to pay? I can afford $400 a month. Should I draft a letter and outline the terms so they do not garnish my wages, take my car, etc?

    Also I have a Macy’s charge from college and would like to know if I can propose a settlement of 40%. I would like to get rid of my debt ASAP and never get sued by another credit card company again!!

    Please let me know what i should do . . . I have 30 days to respond to capitol one.

    Thanks for your help. Best Regards,

    Lisa

  • jimmy

    Scared and Unsure
    I’ve accumulated 16000.00 in credit card debt over the past 5 years. I’ve also just recently been contacted by the IRS with a bill of $7400 overdue on 2007 taxes. I am 60 years old and have been severly afflicted with athritis. SSA awards my claim as of February 2008, and I started recieving checks in January 2009. This is my total income. I am single, and own 50% share of the house I reside. I have a home equity loan on this house and have stayed current, but cannot find additional money after expenses to cover the rest. I have a court date of Oct. 21 for a “Judgement Debtor Rule” plaintiff being Discover Bank. I am also trying to work with the IRS. I have met with two bankruptcy attorneys who reccommend against any such filing.
    I am aware that i have equity in my house, and there is danger here. Should I go to court and simply state my income, its source, and state my property, and just let a decision be made? Please help with some suggestions if I’ve made any sense at all.

    • http://GetOutOfDebt.org Steve Rhode

      Jimmy,

      Sounds like you are going to have to alter some of the underlying conditions to begin to get in a position to deal with this. Or, you can do nothing and lose the case.

      It also sounds like you do have an asset that may be able to have a lien attached to it, which will earn interest until paid. Maybe you should consider selling the house and getting yourself into a situation that is more in line with your current income? Seems that you’ve probably been accumulating credit card debt just to help you get by over the last five years.

      As far as legal advice goes for your specific case, you need to speak with an attorney licensed in your state.

      Steve

  • London

    I currently have a Capital One credit card which has been charged off and passed on to Alliance One. I contacted Alliance One last month and paid them 600 dollars so now I owe them 1300 and wanted to pay them 150 dollars a month until January when I’ll be able to pay them the remaining amount. They told me that would not work and that if I didn’t have 400 dollars in my account in the middle of the month they would garnish my wages. I really don’t need a judgement on my credit report. What else can I do to avoid going to court and having my wages garnished after I’ve tried to work out a payment plan?

  • kathy

    can the balance of my chase credit card go from 6000.00 to 11000.00 once they take me to court…they have offered to settle with me for 2600.00 and I told them my last day of nursing school is tomorrow and I will have a job in two weeks but it just doesn’t matter. Why does this have to happen at the end of school???

  • Belle

    I was reading a dilemma and some advice from a posting by Genie. As my situation is not as bad I do find myself feeling the way she does, scared, depressed and lost. I am being sued by Capital one for $1700 and court is scheduled for October 14, 2009. I am a single mother with 2 children under the age of 7. I’ve had every intention to pay it off during tax season but have been paying off larger debts over the years with those returns and and childcare. I have recently signed a lease with a room mate and do not have more than $100 to spare.

    What should I do now? Get a lawyer and appear in court and explain that I can pay the dept in February when I get my tax return or call the collection/lending institute and schedule low monthly payments? I cannot really afford a lawyer and do not know how to find a pro bono for such cases. Should I or can I appear in court without one? Please help!

    • http://GetOutOfDebt.org Steve Rhode

      Belle,

      I know this is a fearful time for you but I really don’t want you to be scared and depressed. This feels personal but it is not personal. This is just a process.

      In reading your question I was immediately struck by one thing you said. You mentioned that you expect to get a big tax refund. This is an approach that many adopt. The reason you are getting a potential big refund is because you are having too much taken out of your check each payday. The goal for income taxes is to break even at the end of the year, not get a lot or owe a lot.

      If you adjust your withholdings to accomplish this goal you will notice a lot more money in your paycheck now, when you need it most. Let’s say that you anticipate getting $2,400 back at the end of the year. This means that you are forcing yourself into a position where you are giving up an extra $200 a month each month that you could use to pay Capital One, avoid the suit and eliminate your fear and stress immediately.

      My advice would be to go in to work, adjust your withholdings, and then contact Capital One or the lawyer handing the case and let them know what you can now afford to pay.

      Be sure to come back and give me an update.

      Big hug.

      Steve

  • http://GetOutOfDebt.org Steve Rhode

    Genie,

    Damn, that credit card with your father, is it a joint account or are you an authorized user on his account?

    Private student loans are the hardest to work with because they have lots of power and you have few options.

    Bankruptcy doesn’t seem like a great option for you since the student loans are not dischargeable without a lot of very expensive effort and you appear to only have $3,100 of your total debt in your name outside of student loans.

    Your focus now has to be on income, maybe cobble together several part time jobs to increase your income.

    I truly understand the impetus for wanting this to be rectified right away, but until you get income coming in, it;s not going to be.

    One reality here is that you focus on the Citibank card with your father and the private student loans. Once you get income coming in you can go after the IBR on your federal loans and then deal with the other Citibank accounts.

    Until then, I am afraid you seem to have no logical choice other than to let the creditors who want to take action, to pursue the debt. I know you are scared and anxious but it is what it is and all the worry and stress in the world is not going to change this situation without income.

    If you get sued, go to court and explain your situation. It might not change much but if you don’t respond and you ignore it you will be guaranteed to lose the suit.

    Does this plan make sense to you?

    Steve

  • Genie

    Hi Steve,
    Thank you for your response…
    I’m not sure I’m eligible for the IBR plan. I don’t have a job right now…well kinda- I’m working part-time tutor. With the total credit card/loans that I have to pay off, I’m looking at about $45K-50K. RIght now, I know that I have the two capital one cards in collections and student loans in collections-which will probably make me ineligible for the IBR Plan. I live in NY. The Dept. of Higher education already sent me letters about wage garnishment, and I think they sold it to DCS collections…I’m really scared…I want to get this settled right away, but obviously i don’t have the money. I do and am trying to tackle one thing at a time, but the more I think about it, the more it’s making me scared and anxious. I know that my credit is already messed up-badly… I just wnat to get this over with. I can’t ask family because my family isn’t that well-off…they’re struggling as well…
    What do you suggest?
    Capital One-~$1800 -in collections
    Capital One-~$1300 -in collections-being sued…=( help!
    Citibank- ~$3678.00- paying min. monthly- can’t default because I got it with my dad…I don’t want to ruin his credit
    Citibank-private student loan- $20400.00- paying monthly
    Student loans-~$17000.00 + These are teh loans that are severly delinquent and in collections- gov. loans…I’m scared..please help

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