I realize a lot of people post questions regarding debt summons and I've scrolled through the boards but I haven't found a clear answer to a few of my queries. Here's what happened: I was today presented (they slid it under my door) with a summons to appear in court. I'm being sued by Capital One for a $4,600 credit card debt and like many people, I'm not sure what to do. I live in California.

First, I am able and want to pay the entire above debt but not certain how I proceed with that. Do I call the attorney myself? I realize there are other fees involved, but do I have a good chance of arranging an agreement with them if I pay off $4,600 in full? Is it possible they might wave some of the additional fees if I do pay it all off? And, if they do agree to this, will the case be thrown out of court and I won't have to appear?

Also, I'm not sure how I respond to the summons. If I pay what they're asking now, do I still have to respond to the summons? What's the official procedure?

Again, I simply want to pay this sucker off, avoid anything having to do with court and am hoping I'll be slightly rewarded for taking the bull by the horns.

I'm sorry but I have no experience in this area. Any advice on this matter would be greatly appreciated. Thanks so much :)

You should promptly call the creditor's attorney and NEGOTIATE repayment.

During your talks you need to first determine what the total amount owing is inclusive of interest, court costs and legal fees.

Then you should negotiate a lump sum payment keeping in mind that many creditors will discount the debt by 20% in such circumstances and/or waive interest and other fees.

If an agreement is reached GET IT IN WRITING along with a condition that the court proceedings are terminated. (Ideally, you want an agreement that the claim is withdrawn so any reference to it is removed from your credit record.)

If you can't negotiate a positive outcome your defence or response to the court, depending upon the rules in your jurisdiction, could be that you agree to repay but you need terms.

Thanks for your answer -- very good advice.

I called the attorney today, reached an agreement, had all interest and legal fees waved and received a discount on the entire debt due. I don't have to answer the summons, go to court, write anything official except sign the written agreement she mails me. I'm sending a cashier check out tomorrow to expedite the process. Phew!

Here's my advice to anyone with this problem. If you owe a relatively small amount and are sure you can pay it (even if you have to make some sacrifices), and they are willing to come to a fair agreement, just pay the damn thing in full. Forget payment plan. Since I owe the money, I SHOULD pay and the fact that I caught a break for the total makes me feel like I got a deal (I mean, I actually bought a few items for free). The bad credit isn't so great, but that's my stupid fault.

Also, more advice and this is a no brainer-- don't ignore credit card bills! Pay as much as you can every month. I've learned my lesson.

Thanks again

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Originally Posted by TuesdayW

I called the attorney today, reached an agreement, had all interest and legal fees waved and received a discount on the entire debt due. I'm sending a cashier check out tomorrow to expedite the process. Phew! Since I owe the money, I SHOULD pay and the fact that I caught a break for the total makes me feel like I got a deal (I mean, I actually bought a few items for free)

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Hello Tuesday:

I don't want to put a damper on your celebration, but the collection agency who bought your debt probably only paid $.10 on the dollar. Of course, they were THRILLED to hear your offer of face value. It was easy for them to be magnamous by giving you a little discount.

You probably could have negotiated a deal for HALF your debt.

I didn't post this to make you feel stupid. I did it for anyone who reads this, and is in the same position you found yourself in.

excon

Not sure what threads you have read, but I have given that advice to several people in just this same situation. The problem is that most people can't afford to make a lump sum settlement.

But if you can, then definitely try to negotiate such a settlement. How much one offers depends on who is suing you. In your initial post you said that Capitol One is suing you. Was it really Capitol One or was a collection agency suing you for a debt you incurred with Capitol One? I do know that Capitol One, unlike a lot of lenders, will pursue their own debt instead of selling it. So, if it was Cap One, then you probably got a good deal. If not, as excon said, they may have paid pennies on the dollar for the debt so they were happy to get anything on it. Generally I recommend people start with an offer of 50% of the last balance (exclusive of court fees).

Eh -- I owed it anyway. If I didn't get a good deal, I'm not going to sweat it. I still saved. I'm just happy I'm in a position to be able to pay it -- one day I probably won't be.

Thanks for the advice. I'll file it away if this ever happens again (hopefully not).