Sued by Capital One

[Parkside830]

You have a better chance of negotiating a settlement if the creditor does not get a judgment.

Here is a link to tips on negotiating a settlement, written by a former debt collector, now attorney:
https://forum.freeadvice.com/threads/how-to-negotiate-a-settlement.428587/
The more time the creditor spends on collection efforts, the greater the amount of any settlement figure the creditor may be willing to accept.

Thank you VERY much.

 

[quincy]

Thank you VERY much.

You're welcome, Parkside830. I appreciate the thanks.

Good luck.

 

[Parkside830]

I have no idea how long it will stay on your credit report. But for 20 years you will have it hanging over your head. Below is listed what they CAN NOT go after. It will also be earning interest for all of that 20 years until paid.

1. The homestead is exempt. This means a house and up to one acre of land in an urban area, or a house and up to two hundred acres of land in a rural area.
2. Current wages for personal services, certain unpaid commissions for personal services, and certain health aids are exempt.
3. Personal property that is eligible and that has an aggregate fair market value of not more than $60,000.00 is exempt if the debtor is married or otherwise part of a family and $30,000.00 if the debtor is a single adult not a member of a family. The following items of personal property are eligible for exemption within above monetary limits:
   1. Home furnishings, including family heirlooms;
   2. Provisions for consumption;
   3. Farming or ranching vehicles and implements; tools, equipment, books, and apparatus, including boats and motor vehicles used in a trade or profession; clothing; jewelry (not to exceed 25% of the aggregate); two firearms; athletic and sporting equipment;
   4. A two, three, or four-wheeled motor vehicle for each family member who holds a drivers license;
   5. Certain farm animals and forage on hand reasonably necessary for their consumption;
   6. Household pets;
   7. Cash surrender value of certain life insurance policies.

 

[adjusterjack]

I'm mainly wondering what the odds of my account being frozen is

If they find it they will levy it. If they can't find it they can summon you for a debtor's examination under oath where you will have to reveal the type and location of your assets. You had best go off the grid and not use banks any more.

What chance will I have of personally negotiating a settlement with them under such circumstances?

That depends on how much cash you have to offer. If you have half, offer half and see if they take it in exchange for dismissal of the lawsuit with prejudice so it can't be filed again. Make sure you get the agreement in writing and the stipulation for dismissal in hand when you pay.

If they won't take 50% you may have to go to 60% to 80% to settle the debt.

You do have some negotiating advantage since wage garnishment is prohibited in Texas for consumer debt.

 

[quincy]

If they find it they will levy it. If they can't find it they can summon you for a debtor's examination under oath where you will have to reveal the type and location of your assets. You had best go off the grid and not use banks any more.



That depends on how much cash you have to offer. If you have half, offer half and see if they take in in exchange for dismissal of the lawsuit with prejudice so it can't be filed again. Make sure you get the agreement in writing and the stipulation for dismissal in hand when you pay.

If they won't take 50% you may have to go to 60% to 80% to settle the debt.

It is important not to negotiate a settlement with terms you cannot meet (e.g., don't offer $4000 if you only have $2000).

 

[Parkside830]

If they find it they will levy it. If they can't find it they can summon you for a debtor's examination under oath where you will have to reveal the type and location of your assets. You had best go off the grid and not use banks any more.



That depends on how much cash you have to offer. If you have half, offer half and see if they take it in exchange for dismissal of the lawsuit with prejudice so it can't be filed again. Make sure you get the agreement in writing and the stipulation for dismissal in hand when you pay.

If they won't take 50% you may have to go to 60% to 80% to settle the debt.

You do have some negotiating advantage since wage garnishment is prohibited in Texas for consumer debt.

Thanks for your feedback adjusterjack! So, if I had an indexed life insurance fund and was maximizing my contribution to it annually and placing the rest on a prepaid debit card and/or stashing cash in a safe and didn't reveal any of this information during the examination, what would the possible negative result/s be?

 

[Parkside830]

Thanks for your feedback adjusterjack! So, if I had an indexed life insurance fund and was maximizing my contribution to it annually and placing the rest on a prepaid debit card and/or stashing cash in a safe and didn't reveal any of this information during the examination, what would the possible negative result/s be?

Furthermore what if I just didn't show for the hearing? Would that possibly result in incarceration?

 

[quincy]

Furthermore what if I just didn't show for the hearing? Would that possibly result in incarceration?

Debtor's examinations are court-mandated examinations. If you fail to appear, you would be in contempt of a court order. This could lead to a failure to appear warrant, an arrest, fines and jail time.

If you lie under oath at the debtor's examination, you are committing perjury. This is also contempt of court and can result in fines and jail time.

 

[Parkside830]

Debtor's examinations are court-mandated examinations. If you fail to appear, you would be in contempt of a court order. This could lead to a failure to appear warrant, an arrest, fines and jail time.

If you lie under oath at the debtor's examination, you are committing perjury. This is also contempt of court and can result in fines and jail time.

Ok, so I attend and divulge the whereabouts of my assets, what then?

 

[PayrollHRGuy]

Ok, so I attend and divulge the whereabouts of my assets, what then?

They get what the law allows them to get.

 

[Parkside830]

They get what the law allows them to get.

If I still refuse to pay up do I go to debtors jail? What are the odds that they pursue collection even to the point of freezing my bank account which I've decided to close regardless after doing some research. Keep in mind I live in Texas which from what I understand is a VERY pro consumer/debtor state. I hate coming off like a deadbeat that dosen't want to his bills and carry his weight 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....

 

[Just Blue]

If I still refuse to pay up do I go to debtors jail? What are the odds that they pursue collection even to the point of freezing my bank account which I've decided to close regardless after doing some research. Keep in mind I live in Texas which from what I understand is a VERY pro consumer/debtor state. I hate coming off like a deadbeat that dosen't want to his bills and carry his weight 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....

I, as a member of the John and Jane Q Public Club, find your "line of reasoning" to be very unreasonable. It's 6 grand...make a deal to pay x.xx till it's gone.

 

[Zigner]

I, as a member of the John and Jane Q Public Club, find your "line of reasoning" to be very unreasonable. It's 6 grand...make a deal to pay x.xx till it's gone.

Agreed

 

[PayrollHRGuy]

If I still refuse to pay up do I go to debtors jail? What are the odds that they pursue collection even to the point of freezing my bank account which I've decided to close regardless after doing some research. Keep in mind I live in Texas which from what I understand is a VERY pro consumer/debtor state. I hate coming off like a deadbeat that dosen't want to his bills and carry his weight 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....

No there is no debtor's jail. But let's say they find in the examination that you have personal property in excess of the exempted amount. The court can have a Sherriff show up at your house and start loading things into a truck until they have enough that they think will cover your debt when sold at auction.

I'm going to ignore your "reasoning" because it sort of pisses me off.

 

[Parkside830]

I, as a member of the John and Jane Q Public Club, find your "line of reasoning" to be very unreasonable. It's 6 grand...make a deal to pay x.xx till it's gone.

Thanks for your input .