If Capital One or any creditor is suing you, it means they are trying to collect a debt that they believe you owe. This can be a stressful situation, but there are several steps you can take to protect yourself, understand your options, and possibly resolve the situation. Here’s what you can do:
First, carefully review the lawsuit documents usually called a Complaint to understand the details. The lawsuit will specify the amount you owe, including interest and fees. It will outline why Capital One is suing you, often related to an outstanding credit card debt or loan. The documents will provide a date by which you must respond to the lawsuit. Don’t Ignore the Lawsuit.
Ignoring the lawsuit is the worst thing you can do. If you don’t respond, you risk a default judgment being entered against you, meaning the court may automatically rule in favor of Capital One. This could lead to bank account levies or liens on your property.
You have limited time to respond. 20 days from the date you were served. To avoid a default judgment, you must file a formal response with the court, known as an Answer. If you’re unsure about what to include in your Answer, it’s best to consult with an attorney to make sure you’re handling it correctly.
If you owe the debt and are able to pay, but can’t afford the full amount, you may be able to negotiate a settlement with Capital One or their attorneys. This could involve: Offering a lump sum payment to settle the debt for less than the full amount owed.
For example, Capital One might agree to accept 50%-70% of the amount owed in exchange for the debt being marked as settled. If you don’t have enough to pay all at once, you could negotiate a payment plan to pay the debt over time. However, this usually requires a formal agreement. If you cannot afford to settle the debt and you’re overwhelmed by debt in general bankruptcy might be an option.
If you are being sued, it’s often a good idea to seek legal assistance, especially if: You are unsure how to respond to the lawsuit. You are confused about your legal rights or options. You want to ensure that you have all the facts straight before taking action. An attorney who is experienced in consumer debt or creditor defense can help you navigate the lawsuit, negotiate settlements, or guide you through the bankruptcy process if necessary.
If you have any questions about the topic discussed in this article, or any bankruptcy law matter, please give us a call at Bononi & Company in Greensburg, PA 724-832-2499.