Creditor refuses payment terms

[abap04]

What is the name of your state? Minnesota

Trying to work with a local hospital to resolve an accident claim, the hospital turned the bill over to collections and I have tried several times to insure a payment method ...but they refused.

If this agency has refused a payment term after they had previously received regular payments ...is it wrong for them to file a small claim against me for a remainding $1100.00 amount?

[email protected]

 

[HomeGuru]

What is the name of your state? Minnesota

Trying to work with a local hospital to resolve an accident claim, the hospital turned the bill over to collections and I have tried several times to insure a payment method ...but they refused.

If this agency has refused a payment term after they had previously received regular payments ...is it wrong for them to file a small claim against me for a remainding $1100.00 amount?

[email protected]

**A: no, it is not wrong.

 

[JETX]

"If this agency has refused a payment term after they had previously received regular payments ...is it wrong for them to file a small claim against me for a remainding $1100.00 amount?"
*** There is nothing to prohibit a creditor to attempt to collect on a valid debt. This includes filing a lawsuit if they feel it is necessary.

There is a rumor out there that as long as you are making payments.... or even attempting to pay, that the creditor is barred from filing a lawsuit. That is all it is.... a rumor and it has no legal basis. This is simply contract law. You (the debtor) entered into a contract (written or verbal) to repay property (money) with scheduled payments. If you fail to comply, you (the debtor) is in breach of that agreement. And that is the basis of the lawsuit....
Unless there is some provision in the agreement that the creditor will not pursue repayment as provided by law (unlikely), the creditor can use whatever resources (including the courts) to try to recover for your breach.

 

[abap04]

In the event of Small Claims action, is it possible to request or ask the court commissioner for a scheduled payment agreement?
Does the court consider my other obligation and if I show them my budget ...do not garnish my whole check and leave me without living costs??

 

[JETX]

A few states provide for the court to order a specific repayment program, but I don't think that MN is one of them.

As for the wage garnishment, there are state mandated exemptions (in order to prevent taking the whole check as you noted). MN exempts the following:
"75% of disposable earnings per week,
or an amount = to 40 x federal minimum hourly wage, whichever is greater."