Anyone owe Capital One and NOT be sued???

[Beeheery]

hi everyone,
a few people have told me to expect to be sued by Capital One at some point. My balance with them after late fees and over the limit fees is pushing 3.5K. I consider myself no asset but I have heard horror stories that people have been sued by them while being no asset and owing less than 1k to them. Any help would be appreciated! Thank you!

P.S-It has been "charged off" on my credit report. IS this a good sign or only a technicality? If they sell my debt to a debt collector does that mean they give up the right to sue me???

[dingdong]

Do you mean you are a no asset BK case, or you have no assets upon which Cap one can attach a judgement?

When you say "sued", do you mean sued in civil court or through an AP in BK.


You will probably get better answers if you clarify.


DD

[Beeheery]

Oh well I mean I consider myself "no asset" in that I do not own a home, car, savings, stocks etc. So I assumed that it wouldnt be cost efficient to Cap One to try to take me to court to get $ when I am unemployed and have nothing they can take. My only source of income now is financial aid since I am a full time student in college.

[jeb]

Oh well I mean I consider myself "no asset" in that I do not own a home, car, savings, stocks etc. So I assumed that it wouldnt be cost efficient to Cap One to try to take me to court to get $ when I am unemployed and have nothing they can take. My only source of income now is financial aid since I am a full time student in college.

There are some types of income that can not be attached if one wins a law suite and goes after the assets - SS is one of them.

But most other income can be attached once one has a judgment in their favor. They can come after those assets for years in the future so just because you have no income or assets now does not mean they will not come after you down the road.

However, if you file BK 7 and list Cap One as one of those you owe, that amount is discharged and they can not file against you for that amount. - jb

[HHM]

If the account has been charged off, it is most likely longer no longer with CapOne and has been turned over to a Collection Agency or Collection Attorney. Your odds of being sued have dramatically increased. A judgment has value beyond simply your current ability to pay. Odds are, you are not going to be no asset for the rest of your life and I assume at some point you plan on getting a job. Judgement can follow you around, perpetually.

Also, given the amount owed, you are in the sweet spot for collection lawsuits. From a collection portfolio standpoint, accounts under $5,000 have the highest yield rate (i.e. highest return to the collection agency), so lawsuits on those amounts are filed more frequently and because in most areas amounts under $5,000 can filed in small claims or some lesser civil court, the cost is low and success rate of getting a default judgment are high.

[Beeheery]

Eeek! Now I am scared!!! But don't they look to see if someone is employed before they attempt to take them to court? I assumed (wrongly apparently), that once it is sold off that you are in the clear. I always thought it was the ORIGINAL creditor that sued. I am shaking in my boots now! But thank you all for your responses!!

[Iamtoobroke]

I owed Capitol One around $1800.00 including fees and interest from 1999. They sent my account to many junk debt buyers, but none ever sued. All I ever got was the occasional robo-call. It is now well beyond the statute of limitations for that debt--and, of course, they were included in my bankruptcy.

[Rick9972]

Eeek! Now I am scared!!! But don't they look to see if someone is employed before they attempt to take them to court? I assumed (wrongly apparently), that once it is sold off that you are in the clear. I always thought it was the ORIGINAL creditor that sued. I am shaking in my boots now! But thank you all for your responses!!

1. Charge Off (CO) is a accounting term that means very little in the debt collection process. CO is usually applied to a CC account when it gets to be 120 days late.

2. Capital One almost never sells their bad accounts. They will send the account to third party collectors, but never sell.

3. Capital One always has the documentation to prove their case and they always sue.

4. Capital One tracks the SOL dates and will not sue until the last minute, during this time they just keep adding interest and fees.

5. Over the last two years maybe 1% of people manage to slip past the SOL date without being sued.


HHM pegged it perfect, in telling you that you are in the sweet spot. Above 3000 and people usually have the resources to fight the lawsuit. Not worth sueing for under 500. So there you are.

Debt Collectors call judgements "GOOD" paper. Judgements only go away if they are paid or included in a BK. Do not get a judgement!!!!!

[Beeheery]

Thank you Rick,
Do you think it would benefit me if I just filed BEFORE even being sued? I was going to hold out for a bit until I received a job w/ benefits but I don't know how much more difficult a BK is with a lawsuit against me and also if I do get a job, maybe then Cap One will see I have income and will sue ASAP. What would you do????

[Iamtoobroke]

Seems Capitol One has gotten more aggressive than they were back in 1999. I may have misspoken when I said that my account was sent to several junk debt buyers. Perhaps they were just third party collectors. The last company to have my Capitol One debt was Midland Credit Management. Once it was past the statute of limitations In 2007 I wrote a letter to them stating I would use the SOL as a defense should they decide to sue me. They wrote back and said they had instructed the three major credit bureaus to remove the Midland Credit Management account from my credit report. Capitol One already been removed from my credit report as the last activity was over 7 years ago. I was never sued in all that time. Guess times have changed at Capitol One.

[Iamtoobroke]

When I filed bankruptcy I was in the middle of a lawsuit filed by Portfolio Recovery Associates on behalf of Providian. I filed an answer just before I filed bankruptcy. As soon as I filed the lawsuit was tolled and them dismissed. I had no problem, but I did file within a couple of months of being sued and before I had a judgment.

[OregonMom]

I had a capital one personal loan for 5k and after missing around 4 months of payments they sent me a notice that they were writting off my debt, not sure if that is the right term for it, but I never heard from them or a debt agency again. No letters, nada, I added them to my bk paperwork just to make sure it was officially discharged. They were the only ones who did that.

[veryclose]

I was sued by a collection agency who bought my debt from Providian and they got a judgment. Be warned - even if you have no assets, they can send a court officer to your house. The guy that showed at mine was asking about a car on our property (not owned by me), my car (leased), the house (not owned by me) and when it became clear that I had nothing, he asked for money, which he did not get. I also did not invite him into the house - I talked to them in the driveway.

This experience actually prompted me to file. They had also filed to garnish my state income tax refund (which I haven't gotten in years).

Edit: The debt was about $2000 - 2 Providian cards, the consolidated the lawsuit to cover both. Also, Midland Credit Management was the one who did all this. They are extremely aggressive and are very sloppy in their research (obviously the officer of the court had no idea of what I did and did not own).

[Bell30656]

I owed CRapital One just under a $1,000. I stopped paying them in FEB, filed in DEC. Tons of entertaining, threatening phone calls but no lawsuit.

[jennordhavn]

Crap One sued me for less than $1000 right before the 4 year SOL was up. The account had been charged off long before and they used a collection attorney "Brachfeld".