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


“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?


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.


You are not alone. I'm here to help. There is no need to suffer in silence. We can get through this. Tomorrow can be better than today. Don't give up.

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

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Steve Rhode is the Get Out of Debt Guy and has been helping good people with bad debt problems since 1994. You can learn more about Steve, here.
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2 thoughts on “HSBC is Suing Me But I Already Told Them I Can’t Afford Their Minimum Payment. – Wayne”

  1. 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.



    • 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.



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