socialworker
Jul 12, 2008, 07:14 AM
I recently received a letter from a mediation firm stating that I was being sued by Capital One for a little over $3000. I disregarded the letter but yesterday when I came home from work, I had a card from the sheriff's department in my door. I was not actually served with any papers and I did not contact the sheriff's department. Since I can't think of any other reason the sheriff would come and see me, I contacted the mediation firm who sent me the original letter that I was being sued. They said that they would assist in mediation for a fee of $400. I asked if I could not contact the plantiff's attorney directly and the guy told me he wouldn't suggest it. He said that if they had already pursued legal proceedings that I probably couldn't settle out of court or without their services. He said that I could probably settle for $2500. I wasn't sure exactly how much the original debt was but I couldn't imagine that I it was that much. I found a bill last night and I think the original debt is not over $1500 because that was the credit limit on the card. I realize that there is interest and attorney fees but the amount he quoted me is over double the amount. I cannot afford to send the mediation firm $400 plus pay $2500 in a settlement. I asked the man at the mediation firm how he got my information and he said that the court summons was public record. I was skeptical but I thought that sounded legit.
I got scared and actually wrote the check to the mediation firm and got ready to send it. Something told me not to so I have waited. Today, I was doing research on the internet and learned that, actually, I might be able to settle out of court. I have tried to contact Capital One (when I enter my credit card number I am connected to an attorney's message system). I, hesitantly, left my name and number but no one has contacted me back. Of course, I called yesterday afternoon (Friday) about 4:30 pm central time.
I have about $2300 in savings. I guess I am wondering if I can settle out of court for the original amount of the debt. I would save $400 by mediating myself and not using the firm. I am really scared and want to resolve the matter. I agree that I owe the debt. I understand that I may have to pay taxes on the amount of debt they write off. I am a social worker and do contract work on the side. I usually have a lot of write offs because of this and can probably compensate for the additional income in debt write offs with that.
I have been very ill in the past 10 years and have a lot of student loans, medical bills, etc. I am finally in a position to start making things right in my life and just want to do that right thing with the least amount of money.
Due to my past problems, credit scores are my greatest worry at this point, but I was told at one time that if you settle a debt it may remain on your credit report as unpaid because you didn't pay the original amount of the debt. Is that true? I would like, at some point in my life, to actually have a good credit rating and I am trying to resolve my past debt. Thanks for any help that anyone could give me. Also, I live in Alabama if that helps.
I got scared and actually wrote the check to the mediation firm and got ready to send it. Something told me not to so I have waited. Today, I was doing research on the internet and learned that, actually, I might be able to settle out of court. I have tried to contact Capital One (when I enter my credit card number I am connected to an attorney's message system). I, hesitantly, left my name and number but no one has contacted me back. Of course, I called yesterday afternoon (Friday) about 4:30 pm central time.
I have about $2300 in savings. I guess I am wondering if I can settle out of court for the original amount of the debt. I would save $400 by mediating myself and not using the firm. I am really scared and want to resolve the matter. I agree that I owe the debt. I understand that I may have to pay taxes on the amount of debt they write off. I am a social worker and do contract work on the side. I usually have a lot of write offs because of this and can probably compensate for the additional income in debt write offs with that.
I have been very ill in the past 10 years and have a lot of student loans, medical bills, etc. I am finally in a position to start making things right in my life and just want to do that right thing with the least amount of money.
Due to my past problems, credit scores are my greatest worry at this point, but I was told at one time that if you settle a debt it may remain on your credit report as unpaid because you didn't pay the original amount of the debt. Is that true? I would like, at some point in my life, to actually have a good credit rating and I am trying to resolve my past debt. Thanks for any help that anyone could give me. Also, I live in Alabama if that helps.