Recieved a summons - Options?? Economic Hardship?

[jmezera]

Indiana, Monroe Co.

I'm being sued by a local law firm on behalf of Capital One for $997+24% interest+court fees. I received a motion earlier this year and had no idea what to do about it. I realize now that I had 30 days to reply (to god knows who) and now I have summons. The last time I used this card was March 2006 to pay for rent and canceled it after that. I haven't been able to pay for a few reasons. 1. I've been in college and living off my financial aid, 2. I'm still paying off an ER visit from 2007, and 3. I haven't been able to find a job since ending school.

I can't afford a lawyer, obviously, and am at a loss as to what my options are . My parents have asked their lawyer about my situation and they suggest that I "throw myself on the mercy of the court" and bring any documents that show economic hardship. I'm not sure what they can do to me if I can't pay and how they expect to get any kind of money (I literally own nothing). Any help is appreciated. Thanks!What is the name of your state (only U.S. law)?

[Antigone*of*Greece]

Originally Posted by jmezera

Indiana, Monroe Co.

I'm being sued by a local law firm on behalf of Capital One for $997+24% interest+court fees. I received a motion earlier this year and had no idea what to do about it. I realize now that I had 30 days to reply (to god knows who) and now I have summons. The last time I used this card was March 2006 to pay for rent and canceled it after that. I haven't been able to pay for a few reasons. 1. I've been in college and living off my financial aid, 2. I'm still paying off an ER visit from 2007, and 3. I haven't been able to find a job since ending school.

I can't afford a lawyer, obviously, and am at a loss as to what my options are . My parents have asked their lawyer about my situation and they suggest that I "throw myself on the mercy of the court" and bring any documents that show economic hardship. I'm not sure what they can do to me if I can't pay and how they expect to get any kind of money (I literally own nothing). Any help is appreciated. Thanks!What is the name of your state (only U.S. law)?

"Throwing yourself on the mercy of the court" will get your judgement handed to you nicely instead of tossed at you like a paper airplane.

Judgements last a long time and eventually they will get their money. Please remember one thing, the longer you allow this debt to remain outstanding, the bigger it will get.

Borrow the money from mom and dad. Pay them back at your convenience.

[latigo]

Unfortunately, if you acknowledge that the money is owed, then there is nothing you can do. Hardship or no.

I’m sure that your parents did speak to their attorney about your financial distress. But I’m equally certain that this “throwing yourself on the mercy of the court” comes from their mouths and not that of their attorney. One way or the other, please ignore it. It won’t help.

I suppose one bright side of this is that your credit card debt is about $2K under that of the average U. S. consumer. *

Another is that once the judgment is entered the theretofore-obscene interest rates on the account will plummet to a reasonable 6% per annum.

[*] Last year the Federal Reserve Board reported the total credit card debt across the country at $971 billion, or $3,184 per person or $8,299 per household. G.19 Release, November 7, 2008

(My sister doesn’t realize it, but she covers for about 3 1/2 of those households.)

[jmezera]

Thanks for the fast reply. So citing any kind of hardship (economic, medical, etc.) won't help? Should I contact the prosecuting attorney and explain things? I've been hesitant to do anything like that since I know close to nothing about law and I don't want to say or agree to anything that will end up hurting me in the end (although, I'm not sure how much worse it can get). What usually happens in cases like this?

[dfromnyli]

This is a civil matter, there is no prosecuting attorney. The reason why the creditor is taking you to court is so they can obtain a judgment against you that will be enforceable for a number of years into the future. Not having any money is not a defense as to why you do not owe any money.

[jmezera]

@dfromnyli
If you'll re-read my OP I never asked for a way out of it, just for some options. The reason I mentioned a prosecuting attorney is because I'm listed as the defendant and the corp. attorney is listed as the opposing counsel. But excuse me for being a layperson.

My ideal situation is to settle this for less and with some kind of payment option because there's no way I can come up with over 1K like *that*. Is it customary for someone in my shoes to call up Capital One's attorney and try to work out a settlement? I have to be in court on the 4th.

[dfromnyli]

There is no way you are going to be able to settle for less and pay it out over a period of time. The only reason why creditors sometimes accept less is to get the case over with quickly and move on. It cost too much money to process payments each month, it's burning $$ if they accept less and a pyament plan.

You mentionted it is about 1k? ask them if you could set up some kind of pay arrangement where you pay like $200 a month or so, even $100 a month so it does not take longer then a year to pay it off. That would seem fairly reasonable.