Legal Question in Credit and Debt Law in Indiana

Unless you have some sort of express written agreement with them that your payments of a certain amount would pre-empt them from attempting to bring suit for the original balance, they can sue. And if they get a judgment (which they probaby will if you owe the money) they can garnish your wages to the extent that you bring home more (after taxes) than around $215 per week. But they can only garnish up to 25 percent, so if you bring home $400 per week, they can only take $100, and if you bring home $600 per week, they can only take $150, and so on.

It sounds to me like they are pressuring you to see if they can get more money. If they call again, ask them if they want you to stop paying the $50 per month. If they don't want you to stop, ask them why you should pay anything, since they're threatening to sue anyway.

A lawsuit may take time, especially if it's more than a small claims action. Unless this is a huge debt, $50 per month is better than nothing, and they'll probably take it. They may keep calling, but you do have other protections from that, especially if they are a debt collection agency as opposed to an original creditor.

If you feel harassed, look for a consumer law attorney who can advise you on the fair debt collection practices act and other protections. Good luck.