Question for family

[jensu82]

My MIL got served on the 12th with papers from Capital One for a credit card she owes for.

The amount they're suing for is a little over $1k (it's right) and she doesn't know what to do because there isn't like a date to meet in court, they just want an answer.

I don't know what to tell her because I've never been through this.

It says to respond within 20 days but it says it was filed on the 7th and she didn't get it on her door until the 12th.

She'd like to make payment arrangement but hopefully not have to pay as much (like the interest and late fees). She's worried that they'll try to take her bank account or garnish her check and she already doesn't have much or make much.

What should she do?

I told her I'd ask here because everyone gave us great advice when we decided to file our bk.

Thank you!!

[Floridagail]

Take all money out of your bank account. Once they get the judgement (mine took about 6mos) they can get the bank to give them any money in your account, or if you have paycheck garnish money from it. Depending on what state you live in they can or cannot garnish depending on how much you make . Does she have other bills , then she need to file bankruptcy or at least go see a attorney for free visit.

[gregemm]

I was served about a year ago here in Arizona; we get 20 days to respond, and it is from the date of service. You said it was on her door? I know here that wouldn't cut it, if they cannot hand it to the person or another responsible adult at the house it isn't served. (Although they can do it by publication or mail here as well..)

After my response was filed he court set a date. During this time the attorney was contacting me to try to make some arrangements to pay. Look at it this way, if they work it out outside the courts it costs them less. (On the other hand, if they sue you, you pay their legal fees, so maybe it is irrelevant..) As for the fees and such, they don't have much incentive to knock them off knowing that if they sue they will get them, and then some...

In my case I filed a response, and would up having an emergency come up and was not in town for the court date (I know, I could have postponed, but it literally happened 3 hours before I was to be there.) Was a month or so from my answer to first court date, I postponed 30 days once, and had judgment in a week or so after my missed date. They tried to garnish my pay but somehow couldn't find my office, and by the time they tried to levy my bank account I was ready to file.

Absolutely when they get a judgment keep no money in accounts under her name. While I did manage to get my account unfrozen it was not a quick process, and somehow hey seem to time it perfectly with deposits going in.. I was hit with two levies two weeks in a row. Out here some can wipe your account completely, and other are required to leave $150

[btbeme]

She was served the 12th? 12 days ago? Dated the 7th?

Well, now, that is a lot of days in between.

What she needs to do is file an "answer" to the suit, like yesterday. There are a great number of examples available on the internet. Any of those should grant another few weeks before anything bad happens.

In the interim... Tell us about her other financial stats - income, debts, etc. Is she a candidate for a BK?

[BROKEDED]

Take all money out of your bank account. Once they get the judgement (mine took about 6mos) they can get the bank to give them any money in your account, or if you have paycheck garnish money from it. Depending on what state you live in they can or cannot garnish depending on how much you make . Does she have other bills , then she need to file bankruptcy or at least go see a attorney for free visit.

I don't think having one credit card with $1000 on it alone is enough to think about bankruptcy.

[lillymarlene]

I don't think having one credit card with $1000 on it alone is enough to think about bankruptcy.

It shouldn't be, unless it is (like I was a few years ago) just the "tip of the iceburg." I was served a summons from a law firm representing Capital One, by the notice being taped to my front door. This was also for about $1,000 one of my smaller credit card balances.

[Pjmax]

I had one judgement for a CC. I was layed-off from my job before they could garnish. I was receiving all kinds of threatening papers, and notices of further court dates, one I received about a week after the actual date had occurred. I ended up making a payment arrangement, and paid for 8-9 months before I filed BK, the same attorneys handling the judgement case had acquired two more of my accounts. I reached the point of realizing there was no job in my near future, and no way of getting out from under. If the money is there to make payments, make the arrangement, if as someone else mentioned, this is the tip of the iceberg, BK is definitely an option.