Never Served - Can a Judgement Be Overturned
My question involves bankruptcy in the state of: Michigan
I have a question involving overturning a default judgement. I was with a credit union for 4 years. I had a partner, who was on that account with me, run up some of my other credit cards. So I went into the credit union and had them switch the account number for me. They made me fill out an application to have it on file, as well as a statement detailing my monthly income. They switched all the balances and credit limits over to the new account number. I started, a year later, starting proceedings for bankruptcy. I had been in contact with them throughout the previous year through my house being foreclosed and them offering me an option to consolodate all my debts in a loan. They held all these discussions with me at work, on my work phone, my place of employment for over 5 years. When I was gathering information for my bankruptcy, I found they had filed a cause of action for fraud, stating that I had opened the account with the intention of defrauding them, and that they extended that credit limit to me based on a fraudulent statement I provided them. They claimed they attempted to serve me at my house, which I did not live in since it had been foreclosed, and they knew this, and said they could not find me, EVEN THOUGH THEY HAD DISCUSSED ON NUMEROUS OCCATIONS WITH ME AT WORK. They did not even attempt to serve me there. So therefore, I had a default judgement entered against me because I knew nothing of it. They obtained an order of alternate service and posted it to the door, even though they knew where I worked. I had this account and all its balances PRIOR to them switching the number and have all the statements and paperwork from the switch to back it up. When I found this out, I contact the credit union, they informed me the would do "Whatever it takes" to get their money. I asked them if this meant they were going to lie, as they had in the motion, and she responded they would do "WHATEVER IT TAKES." Now, as my bankruptcy is being discharged, they are holding it up because they say since they have a default judgement stating that I committed fraud, it should not be discharged. I am needing to know what I can do to have my day in court and bring all this information showing I did not committ fraud into light? They did not serve me at work because they know they are lying and did not want me to have my chance to lititgate it. Should I try and get the trustee to overturn it? Or should a lawyer handle it? I have asked my bankruptcy lawyer and keep getting bounced around, as well with every other lawyer I contact. I am needing some peace of mind as this has consumed my every thought for the past 48 hours. I know I have done nothing wrong, and the credit union knows this too. But they resorted to sneaky tactics to make it so they would get their judgement and prevent my bankruptcy. Please, any help would be appreciated with what I can do. Thank you for all your help in advance.
Re: Never Served. Can a Judgement Be Overturned
You and your bankruptcy lawyer can continue to litigate the issues of fraud and validity of service through the bankruptcy proceeding. If you prevail, the debt will be discharged. if not, it won't.
The credit union obtained court permission for substituted service, and served you in accord with the court's order, so it's reasonable to believe that the court will conclude that you were served.