I have a lender that has filed suit against me. I was reading the paperwork for the loan and it says that "in event of default or judgment, interest will accrue at the monthly periodic rate on the unpaid balance". Current rate of interest is approx. 28 percent. Will they be able to continue charging this astronomical rate even after they have received a judgment? I was always under the impression that after they receive a judment, I am not obligated to pay anything over what the court orders. What's the real story?

The judgment may include an order by the court regarding the interest that can be tacked on to the principal debt owed, as well as whether or not payments can be made toward the total judgment (and the applicable interest rate on such payments. I suggest you contact an attorney to determine your legal options for defending against the lawsuit and dealing with your debts. An attorney may be able to assist you with settling the matter out-of-court as well. You can find one through the locator service on LawInfo's home page at: http://www.lawinfo.com.