Statute of Limitations

In 2006 I became unable to pay my bills. I wrote letters to all my credit card holders asking if they would lower my interest and or payments. Everyone of them said NO, I was responsible for the full amount every month. I fell into the "Debt Relief" trap. The debt relief company did nothing, except collect their fee and settle a few of my smaller debts, and charged me a lot of money. By the time I was sued the first time I realized I was in a lot worse fix as the credit card companies had added late fees, over the limit feels until my debts had about doubled. I had two judgements taken out agains me. The first collected between 300 & 400 dollars a month from my pay check. The second agreed to accept $50. a month. Another company has been calling me and sending me letters demanding payment. I have tried to explain that I can's come up with $500. or $1000 at a time. I offered to pay something every month but they refused. A few months ago I got a notice from the court that the company was wanting to file suit. I was given a notice to confirm that I owed this amount. When I stopped paying the bills after signing with the debt relief company I owed the company the lawyer works for $2000. No they say my debt is almost $8000. I answered the letter that I agreed I owed them money but not $8000. I heard nothing for a few months, Saturday I received a letter from the attorney with a "joint Stipulation for Consent Jeudgement" and they are asking me to sign and return the form. It looks like an official document for the District Court of Cherokee Alabama. I called the the Clerk of the Court and she said no judgment had been filed against me. She looked and said the last thing they have on it is my letter disputing the amound owed. I'm sorry I went the long way around the block to ask this: Does the law allow companies to drag this type thing out and continue adding late fees and interest?