Credit Card Debt

I hope I put this in the right place because it did say credit card debt questions..

I owe HSBC 10,000 and havent paid anything on it as I was put in collections due to my interest rate going up to a sick amount and finance charges of like 5,000.. I stopped paying and got the collections letter in the mail.

I called and was negotiating and they said they wanted 6,500.. I said I dont have it.. and mailed them copies of a fraudulent charge I had on there and other paperwork. I told them that my finance charges are like 5,000 and my bill was way less than that. Of course they didnt care and said what can you pay?? I said not 6,500. They said what about future work and all. I said I am 57 with limited income and finding a job in this market would be a miracle for me. I also said that if I did find a job the first thing I would do is find a place to live..

so now what happens??