Negotiated payment plan with Collection Company, but attorney wants their fees.

by Chris
(Tupelo, MS,USA)

I am self-employed in Mississippi with over $11,000 in medical bills which are currently in collections. I have been contacted by an attorney and am being sued for the amount, plus attorney's fees. After the collector's attorney filed their Complaint, I attempted to contact them. They never returned my calls. I have since been able to negotiate a payment plan with the collection company, but they refuse to execute the plan until I pay the attorney's fees and agree to a judgement being entered against me.

It seems to me that the attorney, who issued a demand letter and then filed suit, but failed to return my calls to negotiate, causing me to contact the collection company, should not warrant the $2,500 in fees they are now demanding. What are your thoughts on this matter?

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Jul 29, 2012
 Negotiated payment plan with Collection Company, but attorney wants their fees.
by: Debtcollectionanswers.com

Chris:

Based on what you told me in your question, I recommend that you consult with a bankruptcy attorney. You owe a lot of money and you are being threatened with a lawsuit by a law firm. Your situation is not good and you have little or no "bargaining power" based on what I know.

Filing for bankruptcy would wipe out all or most of your unsecured debt, like credit card and medical debt and immediately stop any lawsuits. Of course it also has its downsides, but you may decide that the benefits of bankruptcy out weigh the negatives.

To find out more about bankruptcy and whether it's a good option for you, schedule a FREE initial evaluation with a bankruptcy attorney. You can also read how to file for bankruptcy.

Warning! Bankruptcy is a complicated process. It's not something you want to attempt on your own, especially when your legal situation is complicated as yours is.

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