Sued by HAPO Community Credit Union in Washington?

My experience dealing with HAPO

HAPO have always been polite and easy to deal with. They have not tried to push, let alone threaten, to repo a car because my client refused to reaffirm. They’ve also been good about following the law.

Four mistakes members make

1. Calling instead of answering. You generally have 20 days from service to respond in writing. A conversation with the collections department or the law firm is not a response, however friendly it is.

2. Leaving their paycheck where the debt is. A credit union can usually apply money in your accounts to a past-due loan. This right of setoff is the biggest practical difference between owing a credit union and owing a bank you do not use.

3. Assuming a paid-off car is free and clear. Credit union loan agreements commonly include a cross-collateral clause, which makes the vehicle security for your other debts there. An unpaid HAPO credit card can hold up the title.

4. Signing an agreed judgment to make it stop. A stipulated payment plan often lets the credit union enter judgment the first time you are late, with no further hearing.

What happens after a default

If no written response is served, HAPO can obtain a default judgment for the balance plus costs and fees, and then pursue garnishment of wages or of accounts held elsewhere. A credit union may also restrict your membership once it takes a loss.

Can bankruptcy stop it?

It can. The automatic stay stops the lawsuit and collection immediately, and unsecured debts such as a HAPO credit card are ordinarily discharged in Chapter 7. See seven debts Chapter 7 wipes out. A vehicle loan gives you a choice between surrender and a reaffirmation agreement.

Before you make mistake number two

Call (509) 906-2221 or book a free consultation.