Help with what to do after being served summons

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smithgirlmoe

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I received a summons for credit card debt in the amount of around $7,000 and I am not sure what to do now. I live in Michigan and we fell behind on bills because my husband was out of work. I don't deny that I owe this debt and had every intention of paying it back. The account was sent to an outside collector who was very harrassing. He would not accept the small $50-100 payments I offered to make until we were caught up on our house and Car payments he wanted something like $1000. He called my neighbor, he called my work. I told him he needed to stop. Everytime he left a message at my home I called him back the first chance I got (I work full time and go to school full time so it is very hard to contact me via phone which I explained to him) It was like banging my head against a wall becasue all he did was threaten me and he would not accept any payments.
I then received a letter saying that the account had been sent to a law firm for collections when I called them hoping that I would have better luck with making arrangements they informed me that they no longer had the account that the credit card company took the account back. I called the credit card company and they told me that they would be sending it to another lawyer but they weren't sure who yet and I would have to wait to get a letter from them. I've been waiting to find out what happened and in all honesty it slipped my mind as I try to catch up on all our other bills. Next thing I know I am being served a summons by another law firm (i've never even heard anything from them shouldn't they have tried to contact me before serving me with a summons?).
Now I am so worried. I don't know what my next step should be. Should I hire a lawyer? I contacted one and he wanted a $1500 retainer and then $200 per hour. If I had that kind of money I would just pay the CC company. How do I even answer the summons? The paperwork I got doesn't explain anything. Am I better off to just contact the Law firm collecting the debt and try to set payment arrangements? What are the chances of them making arrangements? I work for a local bank and I am concerned about a judgement being made against me and how that could potentially affect my employment but I don't have a huge amount to pay upfront. As I said we are trying to keep up on all our other bills. If they make a judgement against me what might happen?
I know this is long and I'm sorry but I really don't know what to do and I would appreciate any advice offered by anyone.
 
Capital One Filed Civil Action Complaint

This is actually about my daughter who is in a similar situation. She was 18 with a part time job (4 years ago) when she applied and received a credit card from Capital One. Of course as a kid, she couldn't keep up with the payments and Collections began calling. As her mother, I repeatedly telephoned them trying to resolve this and offering to pay small monthly payments until the debt was paid. They would not hear of it and threw some ridiculous high figure at us that neither my daughter or even myself could pay. At this point, although my daughter did not exceed her $500 credit limit, when she was late, which was often, then they tacked on not only a late charge, but an "over the limit" charge. I truly believe that was unfair as she did not go over her limit with what she purchased. Last week we received a knock at our door and a Complaint in Civil Action was handed to her as defendent in a lawsuit from Capital One Bank. My daughter and I do not know what to do next. She cannot afford a lawyer and neither can I to help her. Does anyone know where she should go from here? Incidentially, she is now being sued for approx. $2,000 for her unpaid balance, interest, court fees and attorney fees. She knows she will have to pay something, but don't they understand if you couldn't make your monthly payment how do they expect you do have all of this, plus have to possibly hire an attorney? Does anyone have a reasonable inexpensive idea? She is more than will to write a letter to the plaintiff's attorney and/or court where the complaint was file. Any thoughts and/or suggestions would be much appreciated! She has 20 days to take action. Thanks again for any ideas you may have!!
 
Is this case being presented in Small Claims court or Civil court? If Small Claims court, one does not need an attorney, although it is always helpful to have one when the other side brings one.

The attorney representing this credit card company doesn't want a letter from you or your daughter. They want their money.

She can attempt to contact the company (not you; her since she is the one responsible) and attempt to see if they will accept a lower amount but they are not likely to accept the hassle of dealing with small, monthly payments. IF they agree to a lower amount (and remember this is only an IF) they are going to want this amount in one lump sum.

Gail
 
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