Legal Question in Credit and Debt Law in Tennessee
My husband had surgery in sept. our part of the hospital bill was 1125.00. I called the business office and tried to make arrangements to pay this monthly. I told them I could pay 50.00 a month. My husband and I are both on social security. They told me if I paid that then after a couple of payments it would kick out of their computer and be turned over for collection. They said I would have to pay 93.75 a month because it had to be paid in 12 months or else. Can they do that? I realize they could if I missed a payment, but can they if I make the same payment every month on time?
1 Answer from Attorneys
Unless you have a definite payment arrangement with the creditor, the creditor can dictate the terms under which payments are to be made. If you are unable to meet their terms, they then have the right to sue to collect the debt.
The problem however, is that with your income being limited to social security, you could be deemed as "judgment proof"; i.e., your "income" cannnot be garnished as social security payments in Tennessee are exempt from garnishments.
If you are sued, you and your husband would have a right to file a motion with the trial court asking the court to set installment payments. The court would consider your "income" and expenses and could possibly order monthly installments of $50.00, or even less, depending upon your financial situation.
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