Taiwan singer Yu Tien, who accompanied Hsu and her mother at the press conference, said that Hsu had been under immense stress and even had thoughts of ending her life.
A visibly exhausted Hsu expressed that she hoped her contractual disputes can be settled amicably.
But she could not afford the NT$2 million (S$83,520) in damages the courts had awarded her management company during the first court hearing.
The courts upheld the ruling for Hsu to pay damages during the first round of appeals.
Hsu is currently appealing against the judgement again.
"I hope for a peaceful settlement, but I am really unable to satisfy their demands for monetary compensation.
"My mother has already borrowed money from people around us for this matter and we might already be NT4, 5 million (S$167,000- S$208,800) in debt. If this continues, I will be forced into a dead end ..." said the 33-year-old tearfully.
The singer insisted that she did not simply vanish from showbiz as media reports claimed, but had been denied work opportunities by her management company for the past two years, leaving her with no income at all.
Her lawyer also pointed out that she had previously taken all necessary steps to end her contract with her management firm and did not breach her contract.
Hsu's manager Zhou Yan Tong was irate when asked to comment on Hsu's statements at the press conference.
"While I was being pursued by the clients because we could not fulfil our part in the contract, where were you (Hsu)?
"Did you give me a way out?" said Zhou.
Whatever the outcome of her court appeal, Hsu has at least made some headway in her bid to improve her financial situation.
She announced that she is making a comeback and performed on a Taiwan television show on Wednesday.
"I'm back. I hope everyone can continue to support me," Hsu told Taiwan media after the show.
Hsu was paid NT$18,888 (S$788) for her performance.
The production team hoped the auspicious number would give her luck as she makes her way back into showbiz.