For the past year, I have been paying off a credit card debt
of approximately $2800 after nearly being sued by the collection agency
Kirschenbaum & Phillips. Over the summer, however, I ran into some financial trouble and was unable to keep up with my payments. Earlier this month, I received a letter from K & P on March 5, 2016 that offered to reduce what I owed if I agreed to make a series of 12 payments. I sent the response 3 days later agreeing to the 12 payments and made the first payment for March a few days later via their online payment system.
Today, a week after I sent the settlement letter, I received a letter from the debt collection agency stating that a judgment had been entered against me ordering me to pay original settlement amount. The judgment was dated two days after I received the settlement letter and the letter was sent out the day after I mailed the notice
in which I agreed to the 12 payments.
I live from paycheck to paycheck and if they garnish my wages
, it could have dangerous implications for me and it would basically leave me homeless. Are they allowed to get a judgment from the courts without notifying me first? Why would send out that letter reducing the debt and have me agree to a payment plan, if they were just going to go to the court and have me pay the full amount? What can I do?