Default Judgment

[Confused in FL]

Earlier this year I filed bankruptcy and included a personal loan made to me some time ago. The bankruptcy went through and was discharged on 9/29/05.

On 10/10/05 I received a summons on this item that was included in the bankruptcy, I sent it to the attorney who advised they would send a copy of the bankruptcy papers and the discharge to the attorney for the other party.

This did not get done and we are now past the 20 day allowance of time indicated on the summons.

Also, I have learned that the address for the notification of the bankruptcy was missing a digit and it is possible that this individual did not receive proper notification.

Two questions:

First, will the incorrect address for the initial bankruptcy notification hurt me in any way? Will the bankruptcy and discharge hold?

Second, the attorney is now filing a motion of appearance to have the default set aside. If this does not work, what are the ramifications to me with a default judgement?

Thank you for your time and information.

[Mr. Knowitall]

First, will the incorrect address for the initial bankruptcy notification hurt me in any way? Will the bankruptcy and discharge hold?

If the creditor did not receive proper notice, the debt may not have been properly discharged, leaving it enforceable despite the bankruptcy. You should discuss this with your lawyer.

Second, the attorney is now filing a motion of appearance to have the default set aside. If this does not work, what are the ramifications to me with a default judgement?

If the default is not set aside, presumably the creditor will attempt to collect on the judgment.

[Confused in FL]

Thank you for your reply, I understand the answer to the first question but would like some additional information on the second.

Needless to say I am less than enchanted with the service my attorney has provided. Not responding to the summons was not the first error. There were 3 on the bankruptcy papers themselves, and then misinformation relating to the hearing. We got through those things, and now this one. I hesitate asking them much of anything at this point.

In reference to the default not being set aside, if the judgement holds and they are able to collect I have done a little research and know that they can put a lien on property owned and/or pursue a payroll garnishment. Is there anything else they can do? I own no property and will no longer be working within the next 30 days.

And my fiance' put forth another question, he may be in a position in the near future to offer a settlement on the debt. Would that also be an option if necessary?

Thank you again for your time.

[Mr. Knowitall]

In reference to the default not being set aside, if the judgement holds and they are able to collect I have done a little research and know that they can put a lien on property owned and/or pursue a payroll garnishment. Is there anything else they can do? I own no property and will no longer be working within the next 30 days.

The normal remedies are garnishment and execution. If you have any non-exempt assets, it is conceivable that they would try to have those assets seized and sold (execution), depending upon the laws of your state.

And my fiance' put forth another question, he may be in a position in the near future to offer a settlement on the debt. Would that also be an option if necessary?

You are always free to offer a settlement; it is up to the plaintiffs to decide if they wish to accept it.

[geofan49]

Worth reading this, carefully:

http://www.usdoj.gov/ust/press/articles/abi012001.htm