[Terri508]

I am being sued by HSBC in small claims for $1,294.00. I have been making payments with the law office (debt collectors) for several months. I was unable to make the payment in April due to being hospitalized. When I realized that I could not make that payment I called and spoke with the man handling my case, told him what had happened and he was fine with my picking back up with the payments in May. Then I got the summons with the court date. I don't deny that I owe this money and was trying to work with them to pay it back. What should I do? I can make monthly payments but I can't afford to pay the entire amount at once. What should I take to court with me? The law office has never sent me anything in writing about the arrangements set up.

[JudyKayTee]

It would appear that you were unable to honor your original agreement to pay. You then made arrangements to pay with an Attorney or debt collector. You weren't able to honor that agreement.

The creditor is now seeking a Judgment against you. You might be able to arrange a new payment schedule but I would expect the creditor to get the Judgment and enforce it if you do not keep up with the "new" payment schedule.

I see no defense to the debt.

I don't think the lack of a written payment arrangement is at play here - obviously between the phone call saying you couldn't pay and receipt of the payment the creditor changed its mind.

The creditor may also be concerned about the Statute running and so they want this over with - now.

[Terri508]

It would appear that you were unable to honor your original agreement to pay. You then made arrangements to pay with an Attorney or debt collector. You weren't able to honor that agreement.

The creditor is now seeking a Judgment against you. You might be able to arrange a new payment schedule but I would expect the creditor to get the Judgment and enforce it if you do not keep up with the "new" payment schedule.

I see no defense to the debt.

I don't think the lack of a written payment arrangement is at play here - obviously between the phone call saying you couldn't pay and receipt of the payment the creditor changed its mind.

The creditor may also be concerned about the Statute running and so they want this over with - now.

Would my best bet be to try to arrange a new payment schedule with the law firm? As I said I am not denying that it is my debt, I do want to pay in full as soon as possible.

[JudyKayTee]

My gut reaction is that you didn't meet the terms of the original agreement or the second agreement and they are not willing to give you a third chance. Of course, you don't know until/unless you call them.

If it's already in suit they aren't going to back down or go away - I'd call, attempt to make a new payment schedule and (as I said above) expect the Judgment to be taken but not enforced as long as you meet your agreement.

[Terri508]

My gut reaction is that you didn't meet the terms of the original agreement or the second agreement and they are not willing to give you a third chance. Of course, you don't know until/unless you call them.

If it's already in suit they aren't going to back down or go away - I'd call, attempt to make a new payment schedule and (as I said above) expect the Judgment to be taken but not enforced as long as you meet your agreement.

I appreciate your help JudyKayTee. I don't expect them to just go away, I know I owe this and will pay. Normally when a judgement is made do you know if you have to pay it immediately and in full or will they allow a payment schedule to be made.

[Fr_Chuck]

You should take proof that you were in the hospital, you should take any proof of a previous payment plan. The judge while he may give the judgement may also allow a payment plan if you show good faith in doing it before..

Next the judgement does not mean you pay at one time it merely means depending on where you live, they can garnish up to 25 percent of your pay check, take any money you have in the bank.

[JudyKayTee]

FrChuck is right but please read #4 above - I would expect the Judgment to be taken but not enforced as long as you make the payments as scheduled.

In my area the Judge has no say in accepting or not accepting a payment plan. It is at the discretion of the creditor.

[Terri508]

FrChuck is right but please read #4 above - I would expect the Judgment to be taken but not enforced as long as you make the payments as scheduled.

In my area the Judge has no say in accepting or not accepting a payment plan. It is at the discretion of the creditor.

Do you know of any reference in which I can check the laws of WI?

[JudyKayTee]

You would have to search Wisconsin debtor/creditor law - what is your specific question? Here is more info from the State's website (I cannot cut and paste sites at the present time):

A Judgment issued by a Court in the State of Wisconsin generally is enforceable for a period of twenty (20) years (Sec 893.40). Upon entry in the court's judgment docket, a judgment may become a lien on the real estate of a judgment debtor in the county where the judgment is entered, except homestead property that is exempt from execution under Sec. 815.20, for a period of ten (10) years from the date of entry. (Sec. 806.15.)

Confession of judgment is specifically proscribed under Sec. 806.25 of the Wisconsin Statutes.

A judgment creditor may execute the judgment against the non-exempt real and personal property of the judgment debtor, against the debtor's person, or against delivery of property. (Sec.815.03.) Wage garnishment is permitted, however, the amount of earnings which may be garnished generally may not exceed twenty-five percent (25%) of the debtor's net income for each one week pay period. (Sec. 815.18(3)(h).)