If you have substantial Capital One debt, you are likely concerned whether you will ever be able to pay it off. And the situation becomes worse if you lose your job or get behind on payments. Phone calls, lawsuits, wage garnishment, seizure of your bank accounts, and other creditor actions can pile stress on top of your debt. Fortunately, you do have legal options. The Fullman Firm is here to work with clients through their Capital One debt settlement so they can put the anxiety behind them.
The Good News About Capital One Debt
What makes collections so frustrating is that creditors often farm this work out to third party companies. When your original creditor sends your debt to someone else, you can expect to be contacted by aggressive collectors. That’s because these companies buy debt cheap, so every additional dollar they collect on top of what they paid is profit.
Thankfully, however, Capital One generally keeps their collections in house. They also understand that not everyone is in a financial position to pay 100% of what they owe, so they are willing to negotiate. The terms to which Capital One will agree vary from one case to another, but we understand their practices and can devise a solution that fits your circumstances.
How Capital One Collects On Its Debts
Every Capital One collections case is different, but most follow the same or similar patterns.
You likely won’t hear from Capital One the first month you miss a payment. After several months of no payments, however, the bank decides to write off the account in what it calls a “charge-off.” But a charge-off doesn’t mean you’re no longer responsible for the debt. At this point, Capital One will either sell the delinquent account to a creditor or keep the account in house but begin aggressive collection actions on it. That could include everything from mailing you collection letters to filing a lawsuit.
There is some bad news about Capital One and its approach to legal action. By some estimates, the bank files more lawsuits than other companies by far. It also files lawsuits on relatively small amounts of debt. If you think your balance is too small for Capital One or its third party collectors to worry about, you’re probably mistaken.
What Happens If I’m Sued?
In a lawsuit, Capital One or the third party debt collector will file a summons and complaint. The complaint is what most people think of when they hear the word “lawsuit”: it describes the nature of your debt, the fact that you haven’t paid it, and the details of the legal claims made against you. The summons requires you to answer the complaint.
You usually have 30 days after being served with the complaint and summons to file an answer, or a default judgment will be entered against you. Filing the answer allows you to state your defenses, if any, and to contest the amount of the debt if it is incorrect. If you opened the Capital One credit card and incurred the debt, there’s not much you can do. But ignoring the lawsuit altogether and getting a default judgment is worse.
You may receive discovery requests after being served with the complaint and summons. These are formal written demands for information related to the lawsuit. Understanding how to answer this information is critical to preserving your legal rights, because you have the right to make appropriate objections to the requests.
When you go to trial, Capital One or the company that bought the debt will present its case through its lawyer. The trial will most likely result in a judgment against you, which is an amount you are ordered to pay. Capital One or the debt purchaser can then use this judgment to garnish your wages, obtain a bank levy or property lien, and take other actions to get the money.
Ignoring the lawsuit will not stop the creditor from coming after you. Also, you will have to pay attorney’s fees and court costs on top of what you owe, plus any interest on the debt. Letting your delinquent account get to this point will, therefore, cost you even more money. But you have the choice of settling your Capital One debt long before it goes this far.
How Does Debt Settlement Work?
Debt settlement allows you to negotiate with Capital One to make a lump sum payment for less than what you owe. Payment options may be available, but lump sums generally offer more leverage to the debtor. Our law firm is dedicated to helping individuals resolve their Capital One debt. Although you are in a better position to negotiate your debt before a lawsuit is filed, we can help even if you’ve been sued and had a judgment entered against you.
We can help in other ways too. You may be able to lower the interest rate on your Capital One account. Or you could be eligible for more favorable payment terms than the ones you are on, which can help you get out of debt. We have worked extensively with Capital One debtors, so we know what strategies work and how to use them.
Contact Our Capital One Debt Settlement Attorney Today
Capital One will pursue you until they get their money. A knowledgeable debt settlement attorney doesn’t just help you save money, but will protect your rights in court too. With the assistance of a lawyer, you can also exclude certain assets from being seized and assert your rights under debt collection laws.
The Fullman Firm is experienced with debt collection laws and knows how to negotiate debt settlements that are fair and reasonable. We also offer affordable payment options and flat fees. Give us a call today to turn the page on your Capital One debt.