spirus said:
I recently received notice I am being sued for unpaid medical bills in the amount of eight-hundred dollars. The account was sold to a local attorney who filed the case. I do owe the money so I've decided not to go to small claims court and thus lose by default. I was told by a friend if I do this I would be subject to arrest if I'm ever stopped by the police for a traffic violation or for any reason. Would you please respond back and let me know if this is true.
Indiana
Thanks,
Spirus
My response:
Indiana Rules for Small Claims court - -
If Defendant Fails to Appear for Trial (Default Judgment)
If the Defendant fails to appear for trial (including the first trial date) , the Plaintiff may request the Court to enter a default judgment against the Defendant for the amount stated in the claim. In order for the Court to enter a default judgment, the Plaintiff (or Defendant on a counterclaim) must show the following:
1. That there is a reasonable probability that the Defendant received the Notice of Claim;
2. That the Plaintiff has no information that the Defendant is suffering from any legal, physical, or mental disability that would prevent the Defendant from attending and understanding the trial; and
3. That the Plaintiff has a valid case and is entitled to the judgment requested.
The Plaintiff may prove the above requirements by giving testimony to the Court.
I don't see anywhere in the Indiana Rules where a Civil litigant can be arrested on Criminal charges for failure to appear in a Civil Court. Just a default is taken. But, that default includes the principle amount, attorneys fees, court costs, and prejudgment interest. All in all, that $800.00 medical bill could wind up costing you around $2,000.00 on the day of judgment.
Remember, a Civil Judgment in Indiana is good for up to 20 years (that's right, 20 years), and accrues interest at the rate of 10% per year. That's better than most CD accounts.
So, theorhetically, if they wanted to just let the $2,000.00 sit there, without collecting, by the time the 20th year rolls around, that $2,000.00 could grow geometrically when you consider the interest is also earning interest, year after year after year.
So, get ready for a huge monkey on your back, and all the trouble you'll be going through during their collection process on that judgment, for up to 20 years. It's not pretty.
Good luck to you.
IAAL
