Legal Question in Credit and Debt Law in Arkansas
Is it legal?
We have been paying a monthly payment to a collection agency on two accounts. One gets $50.00 a month and the other $5.00. (The one for the five a month is from an account that is part of a lawsuit over a car accident in New Mexico. The lawyer handling it told us to pay $5.00 a month and he notified the collection agency of this.) Now the collection agency is taking us to small claims court because they say we have to pay more a month. Being we have been paying the monthly payments can they legally take us to court to get more money, when we already pay the most we can?
2 Answers from Attorneys
Re: Is it legal?
Not only is it legal, they can take 25% or so from your paycheck each month in a garnishment whether or not you can afford it. Have you thought about Bankruptcy? We can make all of these debts go away along with most others you may have.
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