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I am being sued by Capital One, I am set for trial February 5th, 2007 against Capital One. My original debt was 500$, I was sent a letter of judgment against me 12/1/06 saying that I owe them 1700$... I file a report asking for debt of validation and the collection agency that is representing Capital One sent a validation of debt to me. It showed that I originally owed them 500$, with late payments, 25.90% interest, attorney fees and court fees, my debt is now triple of I originally owe them, 1700$ and climbing.
The matter is now set for trial. I have tried calling them up to see if I can settle matters out of court. They told me they will accept 1100$ as a payment plan on a monthly basis. If I pay them 180$ each month. I don't have the funds to covered 1100$ that they are asking for on a monthly basis because I am barely scraping by now.
I am really afraid of going to jail because I can't pay them. Will I go to jail if judgment is won against me? I am a student going to college and I made some poor decisions in my life but not paying this 500$ is probably the worst mistake I made. I don't have 3000$ in personal properties, I am barely getting by with financial aid at my school. I have a financial aid job with a limit of 2500$ per a semester. I don't know if I meet Judgment Proof in my state, I live in Colorado. I'm not exactly sure what to do at trial. I am very afraid. Any help would be appreciated, thanks.
Debtors prison was abolished over a century ago. You will NOT go to jail for unpaid debts. What you are facing is NOT a "trial" but a hearing. There is a subtle difference. You will go before the court and plead your case about what you can afford, since the debt is valid. Its possible the judge will force them into a settlement that you can afford. Otherwise, they will win the judgement against you which gives them the right to garnish your wages or attach any cash assets you have. If you have no savings or salary, then there is little they can do until you do get a job.
Thanks ScottGem, hearing that I will not go to jail is a sign of relief. I have a job but it's being paid for by financial aid at my college, its a financial aid job.
Mr.Yet, they did not give me the original contract. What they gave me was an online statement of my bills and terms of services, which was slightly faded and hard to read. My signature wasn't on any of it.
When I go to court this Feb. 5th, how should I proceed exactly in this hearing? Ask for original contract and is there anything else I should prepare for? Thanks.
As noted you can not go to jail, this is not a trial, but a hearing, you are not charged with a crime, they are merely trying to get a judgement against you.
Once and if they get this judgement, they may attach (garnish) your bank accounts, and garnish any paycheck you get up to 50 percent if you are single in some states, 25 percent in others.
You said they sent a validation of the debt, so I assumed it was the original contract. But since it wasn't, they have to produce it, otherwise the judge will not rule in their favor. He may postpone the case giving them time to produce the documentation. If they can't produce it at the second hearing, ask the judge to dismiss with prejudice.
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