Legal Question in Credit and Debt Law in California
A copy of a summons was given to my 17 year old neice while I wasnt at home? Is this legal? It is a loan for $6,610 plus other fees, that I havent not paid due to financial hardship. Unknowning to me of being served, I spoke to some representative from HSBC that same day who said if I made a initial deposit of $500 and 221.99 a month they would be able to stop the law company from filing against me. It is has already been filed with the courts! It is a limited civil case and I have a order to show cause with a date of 08/09/10, to show why sanctions should not be issued again Plaintif for failure to fail default judgement? Should I stick with the arrangement with the HSBC representative even though I have a summons file by their attorney to show up at court? Should I respond and not pay the representative from the original company(HSBC). The debt is mine, I just have not been able to afford the payment, I will pay but cant realistically afford the 221.99, I work for the county of Riverside and subject to mandatory furloughs. Also this law firm sent a letter to my house on July 30, with the I need to valid debt within 30 days. Well it was filed with the County of Riverside Superior courts two weeks later on Aug 13th? How is this possible? I was thinking that maybe I should just file BK, I havent trying to pay off debt and have made arrangements to pay off smaller bills but hadnt got around to this big one yet? Should I file BK? Go to court admit to the debt and request smaller payments?
3 Answers from Attorneys
I think I may have already answered this question you posed before with less facts. As I said there, you might be able to dispute service because your niece is a minor. But in any case, the new details are somewhat confusing. Ignore the order to show cause, that has to do with the Plaintiff's responsibility if they don't move forward with the case; it has nothing to do with you.
Since this is a limited civil case, there is no date scheduled on the summons and complaint that you show up to court to argue like in a small-claims case. Instead, you must file an Answer within 30 days of service if you choose to fight the case and go to trial. However, inability to pay is not a defense and will be a waste of time as you will lose.
HSBC is not going to have the authority to delay or dismiss the lawsuit. That has to be done with the law firm who sued you. I would get it in writing if they do agree to stop the lawsuit and you can make payments. Otherwise, the law firm could proceed behind your back and get a default judgment against you. You cannot go to court and request smaller payments, that's not the court�s job. The court is only to decide the case, whether plaintiff can get the relief asked for or not, and the relief is the balance you owe. On a typical credit card, consumer loan case, when you breached the contract by not paying, they will win and get a judgment against you. After that, they can place liens on your properties, seize properties, etc.
You really should consult with a lawyer because the civil case is going to be overwhelming. Bankruptcy may indeed be the right option, but an attorney would have to sit down with you and look at your numbers to make that recommendation.
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At minimum, I suggest you file an answer to the Complaint in order to avoid a default judgment. This will put you in a much better negotiating position. I would then recommend you negotiate with the law firm that filed the suit and not HSBC. You should seek the immediate representation of an attorney to walk you through this process. It is not as expensive as you may think.
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