Ask Me Help Desk - Credit card debt Summons in Wisconsin

Hi, I am new here and I am really starting to panic, so hope that someone can help me.

To make a long story short, my husband and I were doing fine with our credit cards (all in my name) that is until we were in a car accident (completely bad luck, since we were sitting in a traffic jam on the highway and hit by a speeding car which failed to stop or slow down) and things just spiraled out of control after that and since then we've been experiencing HUGE financial difficulties and unable to pay off our credit cards. $15,000 credit card debt is probably $25,000 by now after fees and interest and I have been looking into going bankrupt, just so that I can start to breathe a bit again, as the panic attacks are getting quite bad. But I just cannot afford an attorney or the bankruptcy fees just now!:(

But to make matters worse, the other day I received a summons from the County court for a debt owed to Capital One and have 20 days (well, probably 13 now!) to "respond with a written answer, as that term is used in Chapter 802 of the Wisconsin Statutes, to the Complaint" - and I am really struggling with trying to get my head around what I am expected to write! :( Does someone know? :(

A bit about us, we are currently renting, have zero assets nor expensive property as we are trying to live frugally to pay bills. We have a 3-year old and I stay at home with her during the day and was working evenings until recently (as a way to save on child care - so that one of us is always home with her), but my company made cut-backs and I was one of the many who was let go, and I am still looking for work - I am worried that I am having such a hard time because my credit record is really messed up right now and I know that some potential employers look at that! :( My husband also lost 2 jobs in the past 2 months, also do to financial cutbacks with his first job was laid off. He then lost the second job because the company was sold shortly after he started. He has a temp position right now, hoping to be made permanent, but nothing set in stone just yet.

I am just so scared!

If you read the many threads that deal with this issue the answer is already there. All you need do is file an answer with the court stating your Intent to Defend the suit. You don't have to state what your defense is but you can just say that the debt hasn't been verified.

You then send a copy of your answer to the court to the plaintiff requesting verification of the debt.

However, assuming they can verify the debt there is little more you can do. They will probably win the suit and get a judgement against you. If the card was only in your name, then can only go after assets that are in your name as sole or joint owner. So, if you have a joint checking account they can garnish that.

I would suggest talking to bankruptcy attornies. Obviously you are taking that route because you don't have money so they will probably make some sort of payment arrangement with you.

I am a little curious as to how an car accident that wasn't your fault has put you in this situation. Was the driver uninsured? If not, insurance should have covered almost all your expenses.

Hi thank you! :) Since I asked my question, I've been combing the site and finding lots of helpful information.

Great idea - I think that I will contact some attornies and see if they can help with a payment arrangement. I guess my biggest worry is that they may think, how can I expect to pay them if I can't pay my debts, but I would find $1000 so much easier to come up with then $25,000... and I am not too bothered with the idea of going bankrupt, since I never intend to go near a credit card again.

BTW, I also think that credit cards may be a reason I just lost my job. I was working in retail and refused to push credit card applications on customers - something I now feel very strongly about and would feel guilty if I were behind people ever finding themselves in my situation.

About the car... it was totaled in the accent and beyond repair, but for some reason insurance only covered about 25% It was because the financing company offered us 'top-up loans" ever few months on the car, because we were "great customers" - the amount we paid never ever really went up by much, so we never noticed it... but once the car was totaled, of course we were left to pay the top-up portions ourselves + also go out and buy another car otherwise we wouldn't have been able to go to work. So it was really the 'second car' that killed us. So the first mistake really was agreeing to the top-ups!

Quote:

Originally Posted by Katt

So the first mistake really was agreeing to the top-ups!

I would say so. I've never heard of these top ups, but it doesn't sound really kosher. When a car is totalled, the insurance pays the book value unless you have GAP insurance. If the loan balance is higher than the book value, you are stuck for the difference. Sounds like you were scammed somehow unless you got cash for the balance increases.

Quote:

Originally Posted by ScottGem

I would say so. I've never heard of these top ups, but it doesn't sound really kosher. When a car is totalled, the insurance pays the book value unless you have GAP insurance. If the loan balance is higher than the book value, you are stuck for the difference. Sounds like you were scammed somehow unless you got cash for the balance increases.

Yeah, could have been :( It was back in 2003, so already a while ago - probably too late to go back and find out