Capital One...HELP!

[Wantmypeace]

I have been using a credit counseling service for the last year and half, and I'm very happy with them. All of my creditors (11) accepted me into their program, cut my interest rate, accepted lower payments, etc, and my balances are going down AND I've already paid off two of them. So, while I'm still considering BK, I'm doing okay with trying to repay the debt.

Capital One has been the exception. They would not accept my CC program, increased my interest rate to 23.99 (on two cards), and stopped sending me statements. I still send them payments every month, but it is barely enough to cover my new, higher interest rate. I'm sending them the amount the CC service suggested (so I'm sending equal amounts percentage-wise to all my creditors). My balance has actually gone up by about 100.00 over the last year and a half on each of the accounts.

So, here's my question: how do I get them to send me statements that show my payments and their charges? One is being handled by their inside collections and I get a letter each month saying they received by payment and what my current balance is, but I never get anything that shows the interest they are charging. This letter always says that I need to send more money to stay current. The other account is being handled by an outside agency, but I don't know who. When they call, they just ask for money and won't give me any information. Is there a way to get them to send me statements? Has anyone had this experience? I'm guessing they're not going to sue me since I'm sending them money every month, but who knows!?!

[Wantmypeace]

Anyone??

[jacko]

I would stop paying Crap 1 to get their attention and settle since you will not file BK.

Anyone??

[treehugger1]

Crap1 is under no obligation to work with you once you fail to make your minimum payments. The first time you fail to make the payment, you are in default. Eventually, C1 will charge off your debt and they will stop billing you. If your time from your first default exceeds 180 days, then you can assume the debt has been charged off the books. You are still responsible, but your account was long ago officially cancelled by C1. If they sent your account to an outside collection agency, then good luck convincing C1 to take the debt back and work with you.

Don't expect Crap1 to send you statements after they charge off your account. In my opinion it is ridiculous for you to think they have such an obligation. YOU breached the contract, not C1.

C1 is known to sue and use reliable attorneys in the defendant's area. Sometimes they screw up, but from looking at ny local court records, C1 has their ducks and attorneys in a row.

The sad part about all of this is that you could be sued by C1, wages garnished, bank accounts levied, property leined on, and not be able to live up to the other creditors you have been diligently paying through whatever debt service you are using. If such is the case, you may soon realize that in the end you have thrown away thousands of dollars.

Why don't you declare BK? You have already trashed your credit. Your credit may recover much quicker after a BK than after screwing around with "settlements."

Not fact here. Just opinion. (And, a lot of experience with C1, LOL)

[Wantmypeace]

So, what I don't understand is that whoever has the debt can continue to add on interest and penalties and not inform you of any of those? I would like to settle with them, but I'm not even sure how to attempt that at this point. Do I just call them and find out how far behind I am? Since I'm short on the minimum by about 50.00/mo, I'm sure I'm getting further behind, but not sure how far...

I didn't already file BK because our income was too high for 7 and our debt was too high for 13. We were essentially screwed is what the attorney told us last year. My income has dropped significantly this year, so I'm thinking we may be able to file 7 by summer. In the meantime, I don't want any judgements, and I'm not 100% sure I'll be filing, so I'm trying to maintain balance in the meantime. Does that make sense?

[jacko]

All you are doing is p ssing away your cash. Your credit is destroyed anyways and resetting your statue of limitations every month.

Sometimes a wage garnishment is cheaper than the debt settlement plan. They can only garnish up to 25% net of your income after all exemptions are factored in.

So, what I don't understand is that whoever has the debt can continue to add on interest and penalties and not inform you of any of those? I would like to settle with them, but I'm not even sure how to attempt that at this point. Do I just call them and find out how far behind I am? Since I'm short on the minimum by about 50.00/mo, I'm sure I'm getting further behind, but not sure how far...

I didn't already file BK because our income was too high for 7 and our debt was too high for 13. We were essentially screwed is what the attorney told us last year. My income has dropped significantly this year, so I'm thinking we may be able to file 7 by summer. In the meantime, I don't want any judgements, and I'm not 100% sure I'll be filing, so I'm trying to maintain balance in the meantime. Does that make sense?

[outsidetool]

Too high of income to file 7, too much debt to file 13? I'd sure like to see how that works out. I was told about the same thing once...then found another atty who got me through a ch 7. Income way beyond the median...but if your debts are high enough you essentially "make the jump" and can go ch 7. I'd consult other attorneys, and look very seriously at whether sending more money to Cap 1 and your other cards is really worth while.

[Wantmypeace]

The attorney we saw took our 400.00 fee and gave us very little help. I think we got taken! I'll be consulting two or three next time, and hopefully, they won't charge me a fee just to consult!

[daytona]

I would never pay a consultation fee to a BK attny. If you are over the median for a Ch7 that is only step 1, it does not matter until you run the schedule I and J to see what your DMI is...if you have "too much debt" for a CH13 then you have either >~360k unsecured, or >~1.1M in secured debt. Is it all consumer debt or business debt as well? In any case, you should still be able to get into a Ch7 it's just going to take some work on Atty's part...Lastly, you can always do a Ch11, the problem is these are usually expensive to get filed.

[Floridagail]

Capital one attorneys in Florida do not settle for less then 100%, My friend tried to settle 1800 + fees,= 4000. After 1 yr of talks back and forth, they got their judgement. Then took no action . after 1 yr my friend go laid off from her job, low and behold her severance ck never came, the employer hr told her Capt One grabbed it 4000 worth of it. I would just file bankruptcy. you will recover faster on your credit.

[Wantmypeace]

We have a ton of student loan debt, to the tune of about 270K. (Both of us have MA's and multiple teaching/admin credentials.) That, plus our consumer debt, put us over the 360K limit. If student loans weren't considered unsecured, we would have been fine, but they are. So, now we have an income of 150K between the two of us, so that puts us over the limit for Ch.7. When I quit working, it will drop to about 95K, and I'm hoping with the schedules, we'll be able to squeek by under the limit. Who knows? What really sucks is that the student loans count against you for max debt, but you can't use them on the schedules for Ch.7. It is a double-whammy!

[tobee43]

We have a ton of student loan debt, to the tune of about 270K. (Both of us have MA's and multiple teaching/admin credentials.) That, plus our consumer debt, put us over the 360K limit. If student loans weren't considered unsecured, we would have been fine, but they are. So, now we have an income of 150K between the two of us, so that puts us over the limit for Ch.7. When I quit working, it will drop to about 95K, and I'm hoping with the schedules, we'll be able to squeek by under the limit. Who knows? What really sucks is that the student loans count against you for max debt, but you can't use them on the schedules for Ch.7. It is a double-whammy!

Want.......you are indeed in a catch 22.....but as many of the PP's have stated....you will be better off filing....even credit wise.

however, understanding some of the debt such as student loans may not be discharged you will need an excellent atty to help you through this.

NO ONE and i mean to say...NO ONE should pay for the first consult....just like one shouldn't be paying these credit fixing places that are helping you to destroy your credit....or MOST even put you in a worse situation that you were to start with.

you both are intelligent well educated people....but that doesn't mean you necessary can figure out this CRAZY situation many of us have found ourselves in.

don't go to one atty...not even two...keep going until you find someone you feel can help you and your family get out of this mess. and make certain the first visit is FREE or find someone else!!

[Wantmypeace]

I will take your advice and do exactly that. Monday morning, I will start searching for attorneys to call. Wish there were a listing by state/city of attorneys others have used and liked...

[tobee43]

oh there is.......let me see what i can find.......ok....here's one that i found a pretty good list and interviewed and hired from

http://www.nacba.org/

but you need to find someone YOU feel absolutely comfortable with....i'm sure you will.

also google your states bankruptcy atty's and make certain they are listed under something you feel "safe" with. that is where i would start..

best of luck and keep in touch and let us know how you make out!!!!

[Wantmypeace]

Thank you! I'm going to check on the list right now!