Legal Question in Credit and Debt Law in California

Overdue medical bills

A little background info:

I had an accident in 1994 and was taken to small claims court in 1995. I signed some papers saying that I owe $2700. I was making $50 payments each month for awhile. Then I did some research and found some over charges and mistakes on the original bills. I have tried to talk to the hospital but they will not hear me out. When I talked with the hospitals collection department they told me that I owe about $2000 + 10% interest each year. I stopped making payments in 1996, the hospital takes my state tax refund every year.

I just bought a house this year and this issue was not on my credit report.

My questions is; since the charges are disputed and it is not on my credit report do I have to pay this bill? Should I pay this bill? Can they put a lien on my house (which is in Texas)? If they can put a lien on my house can they include the 10% interest per year on the $2000 I owe?

Any advice would be great.

Thanks for you help,

BA


Asked on 5/01/01, 11:58 am

1 Answer from Attorneys
Roy Hoffman Law Offices of Roy A. Hoffman

Re: Overdue medical bills

When you signed the documents in 1994, and agreed that you owed $2,700.00, you gave up your rights to dispute the amount. Your creditor probably has a judgment against you for that amount. If so, the judgment is valid for 10 years, whether it is reported on your "TRW" or not, and can be renewed for another 10 years.

Further, your creditor can probably "domesticate" the judgment in Texas. If that occurs, they will probably be able to place a "lien" of some sort on any real property you might own.

Whether a lien is recorded against your property or not, a judgment creditor is entitled to 10% interest per year under California law.

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Answered on 6/18/01, 3:04 pm


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