Being sued in small claims court

rinkgirl2 · ‎12-01-2013

I just found out I'm being sued in small claims court for some medical bills. They're from 16 months ago and just reported as a collection on my CR in October. This company doesn't waste any time. I never even received a phone call and only received one notice in the mail about it being sent to this agency. I'm not sure if I have any chance of setting up payments or settling at this point.

Collection agency is Statewide Collections in Indiana. I believe they are collecting for the original creditor which is the hospital. I don't believe the debt was sold. The total is about $4,800: $4,400 is the original debt, $300 attorneys fees and about $100 in interest. I can probably come up with about $3k before the hearing in January.

I'm not sure where to go from here or if I even have any options other than just showing up to court and trying to handle it there. Just wondering what others' experiences have been.

almost_there · ‎12-01-2013

Can you consult with an attorney? Maybe offer to settle for the $3k before the court date.

11/2013 FICO: 517 (TU), 560 (EX), 539 (EQ)
11/2013 FAKO: 593 (TU), 591 (EX), 595 (EQ)

ezdriver · ‎12-01-2013

Small Claims Court hearing are very simple and somewhat informal. If I were your, I'd show up for the hearing and offer a settlement of $3,000 payable in three equal payments of $1,000 each. The judge will likely "encourage" the creditor's attorney to settle. If the offer the lump sum of $3,000, the creditor's attorney will accept it and then also ask you to make payments for the rest. I have personally seen that scenario play out. You can also contact the creditor's attorney and make the offer prior to the hearing. If they accept it, they will simple withdraw their complaint. This is much better than getting a judgement reporting on your credit report.

I don't get it but too many people are afraid of the courts legal process and the creditors use that against them. Don't be.

coterotie · ‎12-01-2013

BTW, if you have 3,000 offer 2,500 or 2,700 in the manner suggested. That way when they counter at 3,000 you can say deal.

@ezdriver wrote:
Small Claims Court hearing are very simple and somewhat informal. If I were your, I'd show up for the hearing and offer a settlement of $3,000 payable in three equal payments of $1,000 each. The judge will likely "encourage" the creditor's attorney to settle. If the offer the lump sum of $3,000, the creditor's attorney will accept it and then also ask you to make payments for the rest. I have personally seen that scenario play out. You can also contact the creditor's attorney and make the offer prior to the hearing. If they accept it, they will simple withdraw their complaint. This is much better than getting a judgement reporting on your credit report.

I don't get it but too many people are afraid of the courts legal process and the creditors use that against them. Don't be.

rinkgirl2 · ‎12-01-2013

Ezdriver - so are you saying you think if I offer 3 payments of $1,000 each then I might get away with only paying $3,000 total? But if I offer a lump sum of $3,000 you think they'll want me to make payments on the rest? I just want to make sure I was understanding correctly. Thank you so much for the information.