“Dear Steve,
Have capitol one credit card for about 7 years now never late. In Dec 2008 the business where I am working cut my hours and now I am with reduced pay. Wife wasn’t working but now she is only a little more than minimum wage. Was able before to pay bills but now more difficult. Behind on credit cards but making payments on time but not enough. Behind on mortgage too and asked company HFC to refi before I was late they said no. So now in pre foreclosure in new jersey.
I have to go to court next month for capitol one they are sueing me for $6400.00. I called there lawyer and he said pay up 2500.00 or see you in court. I tried to explain but he said see you. I wanted to make $100.00 a month with no fees he said no.
Should I get lawyer or go in with explanation and tell judge I have payed only $55.00 to 75.00 a month since Dec 2008 and they took my money but would not work out plan with me. I cannot afford more. I’m stuck. Is there anyone to call that can help talk to lawyer before I go I can’t get pay garnished or more bad credit.
Please help.
Jake”
Dear Jake,
With a $6,400 balance the minimum payments would have been around $130. You said you have been making payments of $50 to $75 a month. Yeah, that’s not going to cut it. If you send any payment less than the minimum amount due your account will become more and more delinquent as the months pass. Eventually your account may land on a lawyers desk and you will be sued. Jake, it’s just a flowchart process, not individual consideration.
Of course you always deserve to be heard in court but I’m confused on what your argument would be. It sounds like you hope to rest your position on the fact you sent some but less than the minimum payment required. All the judge has to do is be presented with your contractual agreement from Capital One and it will be evident you have not been able to meet your contractual promise.
The lawyer you need to speak to is a bankruptcy lawyer. Bankruptcy is the ONLY option you have that will provide you with legal protection and relief from this situation. Bankruptcy will end this court case and prevent any judgment or garnishment. And it will also address the rest of your debt at the same time.
So find a local bankruptcy attorney you like and make an appointment to go talk to them about your situation.
Lastly, an attorney summed up these default lawsuits for me very well once when I made the argument the person was doing the best they could under the circumstances. He said, “Steve the judge will decide this as a matter of law. If the person failed to honor the contractual agreement, they will lose. It is out of the hands of the judge.”
Please update me on your progress by
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