NEED HELP!! BEING SUED BY OVERPRICED ATTORNEYS

I was served with papers stating that i was being sued by a hospital in the amount of appx. 650.00. I never even received a bill because they were mailing the bill to a very OLD address. I did not even live at this address when i made that trip to the hospital.
But once i was served i call the attorneys office to make so kind of arrangments to pay. Since i lost my job a few months before i told them i couild MAYBE try and send them 50.00 a month. The guy i spoke to 1st told me that would be fine but i would have to make a payment right then for 50.00. So out of our grocery money i paid them. This all happened in March 2009. Since then i have been sending them 50.00. Except last month i could not afford it. I called them and told them, and they said that since i was in default of our agreement then they were seeking a default judgment against me since i never answered the court papers. When i told them that i never signed a consent judgement, like he was saying i did, and that i DID file a answer to the lawsuit the new guy was very angry and told me " to pay your bills you low life" and he hung up on me. I spoke with the clerks office and the judges office and they said nothing had been filed on the case since i had filed my answer. So i have since sent them a letter requesting they produce ALL paperwork they have on my case, i give them 10 days to respond with my information. Per the judges office and clerks office and a attorneys information that i should do this. I also filed copies at the clerks office of all the letters i hae sent, along with a copy of my insurance card.
My question is: can they receive a default judgement on me? Or can they receive a summary judgement? I want my day in court because i believe they are over charging me. I have paid about 250.00 on thisn debt and they are still saying that my balance is still around 600.00
Although IF they had billed my insurance my co pay for a ER visit is only 100.00. All they did was push on my stomach and told me nothing was wrong with me...even though i later found out i had ovarian cancer and had to a complete hysteroctomy.

What else should i be doing to prevent them from receiving a default judgement against me or a summary judgement? I cannnot afford to pay this bill in full right now due to me being laid off and i cant find a job. Also i dont want them to freeze our bank account because we pay our bills with that money. We have to provide for our children over paying a hospital bill. Iam at a loss as to what to do. Can someone help me please?

If they had the wrong address then let the court know they did not serve you. If they served you then answer the complaint and arrange to go to court.

[annjd]

See also WORLDLawDirect - Answering a complaint