About debt collection company and judgement - Please help!!?

I have been having problems with a loan that I took out in 2002. I had fallen behind on the loan and it was sent to a collection agency. The collection agency took me to court (unbeknownst to me) and a judgement was placed on me for the debt. When I finally got a handle on my finances I contacted the company and started paying them my normal payments. I was unaware that a judgement had been filed against me until much later. I contacted a lawyer and the only information they had for me was to file for bankruptcy, which I thought was ridiculous because I don't really have enough debt where the benefit would outweigh the consequences, so I just have kept paying them for the last two years, and the balance doesn't seem to show any significant difference.I have now paid ~$10,147.62 on an original loan of $5,808.34, and I still owe $3,157.74 on the debt plus daily accuring interest. I would like to get another court date to possibly overturn the other ruling, but have no idea where to start

This is from the case file....

Judgment Information
Judgment Type: CONSENT JUDGMENT ENTERED
Judgment Date:04/12/2006
Judgment Amount: $4,880.80
Judgment Interest:$673.35
Costs:$50.00
Other Amounts:$0.00
Attorney Fees: $732.12
Post Interest Legal Rate:X
Jointly and Severally:In Favor of Defendant:
Possession Of Property Claimed valued At: $0.00
Is Awarded To The:
Together With Damages Of:$0.00
Value Of Property Sued For: $0.00
Plus Damages Of:$0.00
Is Awarded To The:
Dismissed With Prejudice:
Replevin/Detinue Amount: $0.00
Recorded Lien Date:
Judgment renewed Date:
Renewed Lien Date:
Satisfaction Date:

You were improperly served - meaning that you were not informed of the pending case. You have grounds to have the previous judgment against you vacated. I would either retain a lawyer or try to see if you can do it yourself.

The first thing you need to do is go to the courthouse and look at your file. Where did they send the summons and complaint? Did they even mail it? Or did they pay the sheriff's office or process server to deliver it? Where did they deliver it? Did they just leave it at your house? Did they leave it with a minor who just threw it out? Maybe they delivered it to the wrong address? In order to vacate the judgment, you have to have proof that the collection agency didn't follow the rules of civil procedure. Once you find out why you were not notified, then you can proceed with filing the necessary papers. Improper service is definitely grounds to overturn a previous ruling.

Once the ruling is overturned, you will probably be granted a new trial.

It seems outrageous that you have paid more than what you owed and have paid off more than half of the debt of the judgment. You might possibly be able to get some of your money back, but you will really have to fight for it. I think that a lawyer who sees that you've paid over $7000 and are entitled to get some of it back might take on the case, especially if he can take that collection agency to the cleaners!

Bankruptcy doesn't seem to be a viable option for you. The only "good" it will do is wipe away the judgment, and it should be your last resort if you can't get the previous ruling overturned.

do you have a copy of the judgement? you need to get one--it will say exactly how much you had to pay them. once the judgement was done. i don't think they can continue to add $$ to the debt. ck with the county or city courthouse where the judgement was done.

wow .... what interest rate are they charging you?? Can you pay the balance in full? Are you paying the collection agency or the original lender? I don't know how you could overturn the ruling if it really was a debt you owe. You can work with the collection agency - maybe offer them $2000 if they will go away.

yep, in the fine print, it probabbly said what all the delinquent fees they could have charged you were. and there doing it plus interest,

Here is you options pay the 3,157 immediatley ofr declare bankruptcy.

you should have declared bancrutcy two years ago.

really i agree with them you need to file for bankruptcy if not you will pay back alot of money for that loan i would not think twice about it i would start tomorrow

It is a cottage industry-debt collection, banks, court orders for restitution, fines and classes. But that is their job. And they will do a job on you every chance they get. Courts in general do want to help clear up matters, many offer self help services. Better do something in the direction of legal settlement through the court system. Banks make from interest on loans and fees and fines and anything else they can think of because they are a private business. Just don't do nothing, do something ASAP.