Sued by Capital One

[quincy]

... but their are extenuating circumstances. Plus I'm sure Capital One will be just fine, if they get into serious financial trouble I'm sure the "government " will gladly subsidize them out of it. Of course that will be with taxpayer funds so I'm not so sure that's a legitimate line of reasoning....

What are the "extenuating circumstances" that would make you consider hiding assets?

 

[Parkside830]

What are the "extenuating circumstances" that would make you consider hiding assets?

Nothing worth having continually intetest compounding debt hanging over my head for the next 20 years. The wisest course of action by far is to pay. Now the question is how to most effectively deal with the collector/attorney. I'm wondering if I should deal with them directly or hire representation? If I do deal with them directly directly what's the best approach? Should I initially low ball them and offer 30% and mention (not threaten) bankruptcy (which I have no intention to file) or should I be direct and forthcoming and offer an unwaveringly 50% or maybe 70% if I can pay in installments?

 

[quincy]

Nothing worth having continually intetest compounding debt hanging over my head for the next 20 years. The wisest course of action by far is to pay. Now the question is how to most effectively deal with the collector/attorney. I'm wondering if I should deal with them directly or hire representation? If I do deal with them directly directly what's the best approach? Should I initially low ball them and offer 30% and mention (not threaten) bankruptcy (which I have no intention to file) or should I be direct and forthcoming and offer an unwaveringly 50% or maybe 70% if I can pay in installments?

Hiring an attorney to handle negotiations can be a bad idea. The creditor sees you have money enough for an attorney and will want more money.

Check out the link I provided earlier on negotiating a settlement (post #13). It gives you good tips on how to negotiate successfully.

 

[Parkside830]

Hiring an attorney to handle negotiations can be a bad idea. The creditor sees you have money enough for an attorney and will want more money.

Check out the link I provided earlier on negotiating a settlement (post #13). It gives you good tips on how to negotiate successfully.

I wasn't "seriously" considering an attorney but now, not at all. That's a very astute astute insight I hadn't considered. I'll definitely revisit that link and of course there's a lot of additional advice on dealing with debt collectors online as well. I'm very open to any other advice you care to share. Thanks again.

 

[Parkside830]

Hiring an attorney to handle negotiations can be a bad idea. The creditor sees you have money enough for an attorney and will want more money.

Check out the link I provided earlier on negotiating a settlement (post #13). It gives you good tips on how to negotiate successfully.

I was under the impression that I was receiving a "summons and complaint " notice that would give me 30 days to contact the debt collector/attorney on order to attempt to settle out of court. What I received was a CITATION (Civil Citation) stating that "YOU ARE BEING SUED" and that I have 14 days to file "an answer" with the court. Have I missed my window for negotiating a settlement? Should I still try and contact the Collector/attorney?

 

[PayrollHRGuy]

New can try and negotiate it up until the moment your case is called, in fact, depending on how fast things move you could make a deal during the hearing.

 

[Zigner]

I was under the impression that I was receiving a "summons and complaint " notice that would give me 30 days to contact the debt collector/attorney on order to attempt to settle out of court. What I received was a CITATION (Civil Citation) stating that "YOU ARE BEING SUED" and that I have 14 days to file "an answer" with the court. Have I missed my window for negotiating a settlement? Should I still try and contact the Collector/attorney?

You are being sued - if you don't know how to handle it then, yes, an attorney would be a good idea.

 

[quincy]

You need to respond to the lawsuit by filing an "Answer" to the complaint. There are answer forms available from the court.

After you file an answer, and before your hearing before the judge, you have the chance to negotiate a settlement. The creditor does not have to negotiate and can go to court to get a judgment against you for the full amount owing, plus costs and interest.

Your negotiating power now comes from having a significant portion of the debt that you can pay in a lump sum to settle. With a judgment, the creditor must work harder to collect what is owed.

 

[adjusterjack]

mention (not threaten) bankruptcy

Mentioning bankruptcy is the same as threatening bankruptcy. Creditors here that all day every day and don't care a whit. They care when the loan is actually discharged in bankruptcy but their consolation is that you've blown your credit for 10 years.

should I be direct and forthcoming and offer an unwaveringly 50% or maybe 70% if I can pay in installments?

50% all cash might get you a settlement. 70% might get you a payment plan with large monthly payments. Your leverage is that you're in Texas where wage garnishment is prohibited.

Hiring an attorney to handle negotiations can be a bad idea.

Agree. If you have the $300 (or more) that an attorney costs per hour (with a $1000 to $2500 retainer that the attorney will want), you can pay off the debt very quickly.

What I received was a CITATION (Civil Citation) stating that "YOU ARE BEING SUED" and that I have 14 days to file "an answer" with the court. Have I missed my window for negotiating a settlement?

No.

You can file your answer and still continue negotiations for a dismissal at any time up until they get a judgment.

Should I still try and contact the Collector/attorney?

Yes. And do it fast. The longer you wait, the more attorney fees the creditor piles up that gets added to your debt. You probably never read the part of your contract that has the bilateral attorney fee provision (loser pays winner's attorney fees).

 

[Parkside830]

You need to respond to the lawsuit by filing an "Answer" to the complaint. There are answer forms available from the court.

After you file an answer, and before your hearing before the judge, you have the chance to negotiate a settlement. The creditor does not have to negotiate and can go to court to get a judgment against you for the full amount owing, plus costs and interest.

Your negotiating power now comes from having a significant portion of the debt that you can pay in a lump sum to settle. With a judgment, the creditor must work harder to collect what is owed.

Mentioning bankruptcy is the same as threatening bankruptcy. Creditors here that all day every day and don't care a whit. They care when the loan is actually discharged in bankruptcy but their consolation is that you've blown your credit for 10 years.



50% all cash might get you a settlement. 70% might get you a payment plan with large monthly payments. Your leverage is that you're in Texas where wage garnishment is prohibited.



Agree. If you have the $300 (or more) that an attorney costs per hour (with a $1000 to $2500 retainer that the attorney will want), you can pay off the debt very quickly.



No.

You can file your answer and still continue negotiations for a dismissal at any time up until they get a judgment.



Yes. And do it fast. The longer you wait, the more attorney fees the creditor piles up that gets added to your debt. You probably never read the part of your contract that has the bilateral attorney fee provision (loser pays winner's attorney fees).

Thanks

 

[quincy]

Thanks

We appreciate the thanks, Parkside830. Good luck with your negotiations.

 

[Parkside830]

New can try and negotiate it up until the moment your case is called, in fact, depending on how fast things move you could make a deal during the hearing.

Thank you

 

[Parkside830]

You are being sued - if you don't know how to handle it then, yes, an attorney would be a good idea.

Thanks for the feedback

 

[Taxing Matters]

You probably never read the part of your contract that has the bilateral attorney fee provision (loser pays winner's attorney fees).

That's not needed in Texas. Texas is one of the few states that flips the usual rule for contract disputes. Under Texas law, the rule in a breach of contract claim is that the loser pays the winner's legal fees unless the contract says otherwise.

 

[Parkside830]

Mentioning bankruptcy is the same as threatening bankruptcy. Creditors here that all day every day and don't care a whit. They care when the loan is actually discharged in bankruptcy but their consolation is that you've blown your credit for 10 years.



50% all cash might get you a settlement. 70% might get you a payment plan with large monthly payments. Your leverage is that you're in Texas where wage garnishment is prohibited.



Agree. If you have the $300 (or more) that an attorney costs per hour (with a $1000 to $2500 retainer that the attorney will want), you can pay off the debt very quickly.



No.

You can file your answer and still continue negotiations for a dismissal at any time up until they get a judgment.



Yes. And do it fast. The longer you wait, the more attorney fees the creditor piles up that gets added to your debt. You probably never read the part of your contract that has the bilateral attorney fee provision (loser pays winner's attorney fees).

In your opinion, what are the odds that I can garner a 50-70% settlement? Is that fairly routine? On the upside I can obtain a low interest loan to pay off the full amount if necessary. On the downside I have very low confidence in my negotiating ability. I'm assuming the amount of the settlement would not include fees or would it be whatever % of the sum of debtt + fees?