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I’m Being Sued By Capital One. Should I Go Bankrupt? – Laura

“Dear Steve,

My husband and I have been struggling for over a while now. I lost my job in the middle of July 2005 which cause us to default on our credit cards in September. I took any kind of job I could, until I finally found stable work in October of 2008. Just when we thought we would be able to get back on track, my husband lost his job in March. We are again struggling to make ends meet and hoping not to lose our home.

In June of this year, I was sued by an attorney representing Capital One for a credit card that I stopped paying in September 2005. It was charged off by Capital One in March 2006 for the amount of $979. I have asked for proof of debt and was sent a copy of the March 2006 statement showing the balance. My court date is October 21st and they are suing for $1989 plus court fees and attorney fees. I want to know if it’s too late to settle. If not, what would be a reasonable amount? I have spoken with an attorney who said that we would qualify for a Chapter 7 bankruptcy but I would really like to avoid that since the Statute of limitations will be up by the end of this month. Should I tell their attorney that I will file bankruptcy if they don’t work with us? What advise can you give me? I don’t want to file bankruptcy but will before I get a judgment against me.

Thank you for your help,

Laura”

Dear Laura,

It is never too late to settle but in order to settle it will require both you and the attorneys to agree on a figure. And they may demand that payment in one lump-sum.

It doesn’t hurt to ask them but be prepared for them not to agree. At this point, their stronger play is to sue you. And as far as threatening them with bankruptcy, not a big deal. You either will or you won’t. They’ve heard the threat a thousand times and it does not matter to them.

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Do you have other debts as well or is this the only outstanding debt you have? I can’t imagine that you’d go bankrupt over just this one debt.

Please update me on your progress by posting updates here in the comments section of your question. I’m very interested in how this works out for you.

Sincerly,
Steve

You are not alone. I'm here to help. There is no need to suffer in silence. We can get through this. Tomorrow can be better than today. Don't give up.

P.S. Be sure to read ‘The Secret of Surviving Through Difficult Economic Times. What I Learned On My Journey‘.




About the author

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.

10 Comments

  • hi steve. i just recieved a letter from bank of america that they are suing me for nonpayment on a credit card.  i have been working for over a year to try to settle but they never agreed to an amount.  after my purse was stolen and my checking account emptied, i tried debt consolidation.  it was working out well but then i got pregnant and my husband decided to do what men do to their pregnant wives, he left.  my income went from two to one but the debt didn’t go anywhere.  during my maternity leave my income went down to only 60% and i was barely making it with 100%.  now i’m not sure what to do.

  • hi steve. i just recieved a letter from bank of america that they are suing me for nonpayment on a credit card.  i have been working for over a year to try to settle but they never agreed to an amount.  after my purse was stolen and my checking account emptied, i tried debt consolidation.  it was working out well but then i got pregnant and my husband decided to do what men do to their pregnant wives, he left.  my income went from two to one but the debt didn’t go anywhere.  during my maternity leave my income went down to only 60% and i was barely making it with 100%.  now i’m not sure what to do. 

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