Question Captial One Suing - How panicked should I be?

[AllMyDefault]

About a month ago Capital One threatened to sue. Right or wrong I did send them and their lawyer a note telling them I've been unemployed for a long time and have very few assets. But they tried to serve papers yesterday anyway.

This is nearing the 3rd anniversary of becoming unable to pay my CC bills, so I suppose that's why they're doing so now. All the CC's have another year until they are out of the SOL in the state I live in.

I had been hoping things would get better and I could make good on all my debts. Last night this had me thinking about going ahead and filing Ch. 7, which I am eligible for. I felt a lot of relief just thinking about it.

I don't have an attorney, and can't really afford one. So I have to do this Pro Se. I was thinking about how to let them know I'll be filing. Usually people send a letter saying they've retained an attorney. I can't truthfully say that. I've gotten some consults, but can't afford even a downpayment with an atty.

Your thoughts, please.

[keepmine]

Honestly, they hear the "B" word a few thousand times a day. The threat means nothing until you actually file.
I'd suggest you close your bank account and live on a cash basis until, you actually file. You don't want to lose the lawsuit and find your account levied.

[AllMyDefault]

How long would it take for a levy to begin? I mean they just started to try to serve papers literally yesterday.

If I get money out of the bank, then I fill out BK paperwork. I have to say, I have X dollars in cash. Is that right?

I am just about down to nothing at this point. Would a trustee try to take my last few hundred dollars?

[aaj67]

How long would it take for a levy to begin? I mean they just started to try to serve papers literally yesterday.

If I get money out of the bank, then I fill out BK paperwork. I have to say, I have X dollars in cash. Is that right?

I am just about down to nothing at this point. Would a trustee try to take my last few hundred dollars?

They should first obtain a judgement. If you do not attend the court hearings, they will get a "default judgment". Then they can levy your checking account. Depending on your state/county and the workload of their attorney, this can take anywhere from 3 to 12 months. You can find the website address of the court. You can monitor your case online, when they file a motion asking the judge to grant a default judgment, you can file for BK which will stop everything.

As to the cash you have and BK, maybe someone else can shed some light on that, I didn't file for BK yet.

[keepmine]

How long would it take for a levy to begin? I mean they just started to try to serve papers literally yesterday.

If I get money out of the bank, then I fill out BK paperwork. I have to say, I have X dollars in cash. Is that right?

I am just about down to nothing at this point. Would a trustee try to take my last few hundred dollars?

Yes, you list cash on hand. Each state has it's on exemption schedule. Tell us your state and we'll link you to your states exemptions.
I'd suggest you not panic. Sounds like you have nothing anyone can take. Your problem isn't debt but, lack of income. I'd strongly suggest you focus on some sort of job. While bk will wipe away your debts-post bk, you still need to be able to support yourself.

[LadyInTheRed]

You should not be at all panicked. Panic is no state to be in to make good decisions.

You have time to get a Chap 7 filed before they can get a judgement and get at your bank accounts. It shouldn't be a surprise as long as you pay attention to what is going on in your case. Exactly how quickly the process can take depends on court procedures in your state and how quickly the creditor moves.

Yes, if you have cash in your possession at the time you file, you have to list it on your petition as an asset.

If you are going to file pro se, get the Nolo Press Chap 7 Guide and start working on getting your petition together. Start now so you have plenty of time to get the BK filed. There is no point in telling creditors you are filing until you have actually filed.

[LadyInTheRed]

Your problem isn't debt but, lack of income. I'd strongly suggest you focus on some sort of job. While bk will wipe away your debts-post bk, you still need to be able to support yourself.

Excellent point.

[AllMyDefault]

There is no point in telling creditors you are filing until you have actually filed.

Really? I suppose they have some people who bluff, but I really mean to. I've gone online and saved the forms I need in PDF.

So it means nothing to them until the paperwork is filed at the courthouse?

[LadyInTheRed]

Really? I suppose they have some people who bluff, but I really mean to.

Some who bluff, some who change their mind some who really mean it. The collectors don't care which you are. They will do what they can to collect while it is still legal for them to try to collect.

I've gone online and saved the forms I need in PDF.

That's a very small first step. Don't underestimate the task you are undertaking. You are acting as your own attorney. You must familiarize yourself with the Probate Code, with the Federal Rules of Bankruptcy Procedure, your Local Court Rules and your state's exemption laws.

So it means nothing to them until the paperwork is filed at the courthouse?

Exactly.

[AllMyDefault]

Believe me I've been researching this for quite a while.

Has anyone else been sued by Cap One?

If so, anything you can share?

[MakinMeCrazy]

I can tell you from my experience Capitol One has recently sued me.......won the judgement and has put a lein on my home for a lousy $1076 ......I am on SS and they couldn't my so called bank account.......I hope you have better luck then I did.

[frogger]

Really? I suppose they have some people who bluff, but I really mean to. I've gone online and saved the forms I need in PDF.

So it means nothing to them until the paperwork is filed at the courthouse?

It means absolutely nothing at all. You either are or are not under bankruptcy. There is no credit given for "thinking" about it or saving the forms.

[Freddy03]

I'd try to fight the suit. I did and won against Capital One. They keep lousy records. I answered the suit, questioned the amount they are suing me for and the judge dismissed the case because Capital One couldn't prove how much I actually owed. Now I'm not saying this would work for everyone because I did lose another CC suit which led me to file Ch. 7. But answering the suit and requesting documents will buy you some time. Good Luck!

[AllMyDefault]

I'd try to fight the suit. I did and won against Capital One. They keep lousy records. I answered the suit, questioned the amount they are suing me for and the judge dismissed the case because Capital One couldn't prove how much I actually owed. Now I'm not saying this would work for everyone because I did lose another CC suit which led me to file Ch. 7. But answering the suit and requesting documents will buy you some time. Good Luck!

Thanks for that information. The haven't actually served the papers yet, so I have no idea of a case number or where I can find information online.

What types of documents did you request?

[Freddy03]

Thanks for that information. The haven't actually served the papers yet, so I have no idea of a case number or where I can find information online.

What types of documents did you request?

I'm not sure what state you are in but in most states you have 20 days after you were served to answer the suit. If you goggle "how to answer a credit card summons for your state" it's usually pretty self explanatory. I requested a copy of the contract, copies of all statements, collection letters, etc. In my state the signed contract is not required for them to win but it does stall them a little.