Legal Question in Credit and Debt Law in Arkansas
Judgement
I had a medical bill turned over to credit agency immediately after discharge from hospital in 2001.I made payments to credit agency for 2 yrs in amount of $50 monthly(no signed contract).My last payment was in Sept 2003.Few days after this payment, I received letter from attorney for collection agency that they had been hired by the credit agency to collect the debt.When I contacted their office, they were very rude & said $50 monthly was not sufficient.I could not deal with these rude people, so I quit making payments.I realize I should have handled differently.I received a Complaint in Nov 2003.It listed my account with hospital, balance of $4950 but my true balance was $6492.''Total Amount of Relief Calimed'' was for attorney fees of $1658, not the hospital bill.I denied any responsibility to attorney fees but agreed I owed hospital. Then later, I received a judgement for hospital bill, attorney fees & court costs. They are asking for list of assets, bank accounts, etc. My question is: How can a judgement be granted for entire amount if the relief claimed was for attorney fees only? After paying $50 per month for two years, why would they & do they have the right to demand payment in full? What are my rights under Arkansas law?
1 Answer from Attorneys
Re: Judgement
Without seeing the judgment, I can't be sure, but when a creditor files a suit and wins a judgment (as it sounds like is the case here), the court can award attorneys fees and court costs as well as the original debt to what you owe.
I would have to see the original agreement to know whether they had the right to demand full payment, but if the court has awarded them a judgment against you, they probably could.
I don't know your financial situation, but you can still probably workout a payment plan with the collectors. If you have any property of any value, such as car or house or bank account, they may try to take it away from you, for payment of the debt. Obviously, you don't want that. If I were you, I would call them and set up a payment plan that you can live with and see if they will accept it.
I hope this helps some. Without all the details and seeing the actual judgment, it is hard for me to give a more specific answer.
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