HSBC is Suing Me But I Already Told Them I Can’t Afford Their Minimum Payment. – Wayne

Wayne wrote to me through the GetOutOfDebt.org site and asked the following question. If you have a credit or debt question you’d like to ask just use the online form. I’m happy to help you totally for free.

Income from the GetOutOfDebt.org site advertising is used to help alleviate poverty. If you would like to help me to help others, there are easy and free things you can do, click here to learn how you can help.

“Dear Steve,

Over the past six months or so we have gotten behind on an HSBC account. With each letter we received from HSBC and now a debt collection company we have explained our financial situation and asked for a lower payment we canmake. Each letter (the first two were sent with delivery confirmation and the second two were sent certified) we asked for a response. We have never received the first response.

Last night we had the “knock on the door”, a lady tried to deliver a summons. I suppose she will be back today. The reason for falling behind/defaulting on the unsecured loan: Home damage from Hurricane Ike; Medical and food bills (I am diabetic), our car was totalled and we had to come up with another. Two weeks after getting the car the transmission failed. Our dog broke it’s leg, on and on and on……

Do I have any defense since I sent the letters asking for a payment I could make? What happens if I am sued and I lose and I still don’t have 1,500 – 2,000 dollars to pay?

Wayne”

The Answer:

 

Dear Wayne,

Your only way to have any legal rights and legal protection at this point is going to be bankruptcy. No other debt solution gives you any legal control over your creditors.

Bankruptcy will kill the suit against you which you will probably lose just as a matter of law. You made a promise to pay that you are doing as agreed.

Just because you did the right thing and tried to work something out with HSBC does not mean that they either had a responsibility to respond or do it.

Just accept the summons and then go and meet with a local bankruptcy lawyer and discuss what bankruptcy will mean for you. Most bankruptcy lawyers offer a free bankruptcy consultation to review your situation and answer all of your questions.

Big Hug!

HSBC is Suing Me But I Already Told Them I Cant Afford Their Minimum Payment. Wayne payment arrangements i can afford knock at the door hsbc contacted lender contacted creditor contacted bank ask the get out of debt expert
@GetOutOfDebtGuy

P.S. Be sure to read ‘The Secret of Surviving Through Difficult Economic Times. What I Learned On My Journey‘.

Check out your debt relief options using The Amazing How to Get Out of Debt Calculator. It's free, easy, and anonymous.

Other Related Articles to Read

  • Wayne

    Hi Steve,
    Thank you for your response. It is helpful. I can’t claim bankruptcy. My wife and I went through a Chapter 7 back around 2002 or 2003 (I think it was discharged in Jan 2003). That is why this is bothering me so much. We were doing ok until all those incidents happened.

    The lady has not come back with the summons yet and it has been a week (sure seems they would be quicker than that). Guess I will go in tell the judge the truth,, show the letters and hope for the best.

    Regards

    Wayne

    • http://GetOutOfDebt.org Steve Rhode

      Wayne,

      Bankruptcy still exists for you as legal protection. You could file a Chapter 13 bankruptcy that would be based on what you can afford to pay and isn’t that your ultimate goal? Falling on the sword will probably not be effective since the judge does not have the discretion to modify a valid contract without the consent of both parties. Keep me posted on what happens.

      Steve

Google Plus Submit a Tip Ask the Debt Experts