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Summons served by attorneys for Capital One


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Hammerman and Hultgren just served us this evening. We owe approximately $3,000. My husband lost his job last January, and was underemployed prior to that. We stopped paying at that time. He was employed in March, but we barely made ends meet.

He did get a better paying job in July, but we tried to settle our debts. I used info from this website. We didn't get any responses.

I did receive a letter from Hammerman and Hutlgren dated November of 2011. It stated we could make a payment over the internet. I paid them an amount a little lower than our minimum payment in December and January, and was going to make a third one this week.

I erroneously thought this meant they wouldn't sue us. A few months ago, I called Capital One to make sure I wasn't supposed to pay them, and they wouldn't talk to me, and referred me to the law firm.

In the Complaint, it states our last payment to Capital was in October of 2011. This isn't true, as we paid the law firm, who I assumed was a collector.

We have other debt with the Credit Union that we are paying regularly. They worked with us. I called Hammerman and Hultgren to discuss our payments and debt, and no one called me back.

So, what advice do you have? We are considering bankruptcy, but won't qualify for Chapter 7. I don't want to represent ourselves, and definitely want to get an attorney.

Sigh. I just want this to go away!

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Its too bad you have paid them something the past few months. Does their lawsuit show that you have paid on it? Are they asking for the right amount. You really should list all the info about the lawsuit. When did you get the subpoena? Have you answered it? Be sure to answer before the time has gone by. In order to have any chance at winning you have to deny the debt and that is hard since you have been paying on it. Your case looks very difficult to me since you have been paying. First you need to find out if the lawfirm is a debt collector or owns the debt or is just working for capital one. Most likely they are working for Cap One. In your case I might contact the lawyers firm that is suing you and try to make a deal with them. I dont think you are going to get much of a reduction in the bill since you have been admitting to the bill by paying on it. That would NOT be my normal advice here. Since your husband is working if they get a judgement they may get payment thru his job if that is allowed in AZ. Hope you get some better advice. If you have alot of debt maybe a chapter 13 might be available to you.

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Thanks for the reply.

I'm pretty sure the law firm works for Capital One. I never thought we could deny the debt. We did try to settle, but they wanted around 85%, and we offered a lot less. We didn't have 85% of the debt.

I made payments to avoid a lawsuit, yet here we are. We were served the Summons and Complaint today. The amount does not reflect the two payments we made in the past couple of months. The Complaint is incorrect, in that we have made payments. However, the payments were to the law firm, and not Capital One. I did call Capital One, and they referred me to the law firm. I called the law firm, and no one called back. I realize I should have called again.

They are asking around $1000 for attorneys' fees. At this point, I think we'll just go with Chapter 13. We have about $9500 in total debt. We were willing to make payments, until this suit was filed. I really don't want a judgment.

Thanks for all your help!

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Chapter 13 is not going to do much for you on 9500.00. At least make them get a judgement before you file BK. If you're going to file BK, put up a fight. Who cares if you lose, you BK it away, if that is really something you're going to go forward with.

If you're going to file BK, get your money's worth out of them. You never know, you might get lucky and beat them.

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Chapter 13 is not going to do much for you on 9500.00. At least make them get a judgement before you file BK. If you're going to file BK, put up a fight. Who cares if you lose, you BK it away, if that is really something you're going to go forward with.

If you're going to file BK, get your money's worth out of them. You never know, you might get lucky and beat them.

Well, I won't fight them. And I used to be a legal secretary, so it's not like this is foreign to me. Funny, but I worked for a law firm that represented creditors, and even filed a few default judgments.

However, I don't think I can take the stress at this point, and we can scrape up the money for an attorney. Another issue is that we're getting a tax refund. I was going to use it for the mortgage, as we are two months behind.

So, how long will it take them to file a judgment? Can we use our tax refund for the mortgage, and then file bankruptcy? I know there is some type of waiting period between receiving money, and then filing. We filed Chapter 7 11 years ago. Ironically, it's coming off our credit this summer.

Chapter 13 doesn't seem that bad to me, as it will stop the interest. Also, the charge offs stay on our credit for 7 years, similar to Chapter 13. So, it's looking very attractive to me.

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So, how long will it take them to file a judgment?

Not long if this is your strategy.

Well, I won't fight them.

You can drag it out four to six months with little effort, assuming you at least will answer the lawsuit. Generally speaking, in my area, about a year is pretty standard for something like this.

Another issue is that we're getting a tax refund. I was going to use it for the mortgage, as we are two months behind.

Don't waste it if you are going to file BK. I'd be socking away some money. A chapter 13 BK will be 3-5 years and unlike a chapter 7 you will be paying in over that time. You will get very little "pocket money" for the month. I think it is $100.00.

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They haven't credited payments and that is a violation. you can countersue for that.

Having said that The choice is yours but the BK trustee will make them verify the debts., however BK costs about 4K give or take.

The answer will punt it down the road a bit and you never know the paperwork may be missing.

I understand you not wanting to fight but unless you are going to file BK in the next 30 days you are going to get a judgment and that may cause all the rest to sue before you BK which raises the costs of BK.

If you give a rudimentary answer it will give you more time to think of your strategy and push judgment back for a good amount of time.

Check with a BK lawyer they will say the same to push it back until you get the BK stay in place.

You need time to get your course of action planned and the complete burden is on them.

I would answer then send some discovery to keep them busy until you BK.

Just my non lawyer opinion but it is sound advice just between two US citizens excercising free speech.

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I agree with coltfan and Seadragon even tho I understand not wanting the stress of fighting the case. I felt like that too and I didn't feel like I had a way to get around the case either. But low and behold with help from here I was able to get my case dismissed.

I would at least answer the subpoena and give a general denial to the court if that is allowed to give yourself time. It can't hurt and as Seadragon said, the fact they didn't deduct your payments is against the law and you can file a case against them and use it as leverage against them in the lawsuit. They may end up lowering what you owe them at some point. I would save your tax return for your BR. Just make sure you don't put it in the bank where they can get it!

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Yikes, a possible $4,000 for a bankruptcy. That's more than I expected. I didn't realize that about the other creditors also.

It's so frustrating, because we were trying to pay. Oh well, another one of life's lessons.

I guess I'd better start searching for more info on filing an answer. Thanks for all the help.

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So what if they get a judgment, it dont mean you have to start paying on it right away. Take your money out of the bank just in case they try to latch on to your accounts and freeze them.

After a judgement you can string it out for years if you play it right. Hell I have a ten year old judgment I never paid crap on. I just keep fighting it.

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So what if they get a judgment, it dont mean you have to start paying on it right away. Take your money out of the bank just in case they try to latch on to your accounts and freeze them.

After a judgement you can string it out for years if you play it right. Hell I have a ten year old judgment I never paid crap on. I just keep fighting it.

From what I remember from my legal secretary days, the attorneys rarely got any money for their client. I think they wanted to at least screw up their credit.

When I filed judgment documents, I just plugged info into a form. I've read a lot of the posts here, and sometimes it seems like Chinese. Well, I was looking for a new hobby, lol.

I had another question. The amount they offered in settlement is almost the same as our tax return. Could I use the fact that they made a mistake in the Complaint as a leverage to settle the debt for that amount, along with the info that I will file an Answer, etc.?

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I called them, and they gave me a settlement figure that is approximately $300 less than what they are asking for, and does not include the approximately $1000 attorneys' fees stated in the complaint. So, about $1200 less than what they are asking for in the complaint, and $300 less than the original amount.

Our tax return is close to this, so I think we'll go this route to avoid bankruptcy. The paralegal also offered a payment plan, with a Stipulation of Judgment, but the total would be $1200 more than the settlement amount. Plus, I'm not comfortable with the Stipulation of Judgment.

She said they would send a settlement letter, with a payment date of six weeks out, to give me time to get our tax return (we just filed last week). Once they received the amount, they would file a Notice of Dismissal.

I did make an appointment with a bankruptcy attorney for tomorrow. However, we have a payment plan with the CU, and our other three debts are each under $1000, with two of them under $400. None of them have contacted us, even though I tried to contact them offering to settle. If they do contact us through an attorney's office, I will try and settle.

So, I think this is better than Chapter 13. I just have to talk to my husband and then call the law firm back.

ETA: Oh, and thanks for all your help. I really appreciate it.

Edited by Blue Desert
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