stop paying
Your friend should definitely stop paying. If he stops paying, the creditor will have to file a lawsuit against him. Once the lawsuit is filed, they have to show that the court has jurisdiction over him, and that he can be properly served with the court papers (process). Even if they can show both and get a judgment against him, they then have to find a way to enforce that judgment. Unless he's in the US in the same jurisdiction or has property in that jurisdiction, the creditor doesn't have many options for enforcing it (e.g., I don't think they can take his property in the UK, or that they can get jurisdiction over his employer to get a wage garnishment, etc. - there's probably some treaty about this).

Does his agreement with the hospital say that he will pay their costs and attorneys' fees? If not, they aren't going to want to spend the money to go through the lawsuit here and then pursue the judgment across the pond. They'll likely just send him harassing mail and maybe make harassing phone calls (e.g., "this will ruin your credit rating...").

If he was hit by a truck, why didn't the driver's car insurance cover it? They'd have a much easier time getting the money from the driver of the truck.

Better yet, send one final check and write on the check that it is payment in full of a disputed debt or that it is an "accord and satisfaction." I think that still works in some states.

Just a few thoughts from an American lawyer. If it were me, I'd stop paying.
( kingoffools, Tue 16 Mar 2010, 18:31, Reply)