nelson & Kennard Sycophants for Capital One Bank Sacramento, California

You're dispute isn't with Capital One, other than the fact that they wouldn't work with you on your terms. Creditors aren't obligated to do anything that isn't outlined in the terms of agreement. Many times they will work out alternate arrangements. However, in some cases, it's financially better for them to sell the debt to get what they can and cut their losses and that seems to be what happened in your case.

From a strictly business standpoint, they made the right call. It's 3 years later and you still haven't been able to find a job. Yes, it sucks and it's not fair, but your beef is with the collection agency, not Capital One. When the recession hit, Capital One had MILLIONS of customers that couldn't pay their bills and they couldn't just give them all a break until the economy picked up and stay in business. They had to take the money where they could get it, which was from the debt buyers.

As for Nelson & Kennard, you can't just ignore the law suit. You need to respond by the date on the notice. Much like the mortgage companies and their questionable foreclosures, debt collectors are coming under a lot of scrutiny right now. You need to make sure they didn't take any shortcuts on the way to court. If they did, ask for the suit to be dismissed. That doesn't mean they won't refile properly, but it would buy you some time to figure out what to do next. Unfortunately, unless you can make arrangements with Nelson & Kennard to pay the debt BEFORE going to trial, bankruptcy may be your best option at this point.