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  1. #1
    Join Date
    Dec 2009
    Posts
    1

    Default Default Judgment

    I own a collection agency that is a small out of the back of the house deal and only been in business for 2 years, we are suffering from the slow economy like everyone else. The company doesnt own any property just a few computers and office supplys. We have an attorney treatening to sue us for FCDPA violations and is demanding 10,000 dollars. I dont have the money for an attorney and do not plan of showing up for the court hearing. If they get their default judgment are they going to be able to enforce it? Were a small 2 person operation and cant afford costs like the larger companies.

    FLORIDA S-CORPORATION

  2. #2
    Join Date
    Mar 2009
    Location
    Key West, FL
    Posts
    2,350

    Default Re: Default Judgment

    Do you know the law under which you operate? Can he sue you? Is there a private cause of action? If so, how are damages calcuated? You should know this.

    In what state is the attorney located? If he is outside Florida, the odds are lowered that he will actually sue. Then again, it might just be a shake down and he might not sue at all.

    Have you properly maintained your corporate records. Do you have minutes of board meetings, etc? If not and he gets a judgment, he could pierce the corporate veil and go after your personal assets.

    Generally you can appear for the corporation in small claims court, but in county or circuit court a corporation must appear by counsel. I would never recommend not appearing and allowing a default judgment to happen.

    I would also never recommend operating a collection agency as a home business and doing so without insurance. You probably don't have an occupational license either.

  3. #3
    Join Date
    Sep 2005
    Location
    Behind a Desk
    Posts
    98,846

    Default Re: Default Judgment

    When they get their default judgment they will be able to enforce it against any of the assets of the company. If you're also named individually as a defendant, they may pursue your personal assets.

  4. #4
    Join Date
    Mar 2009
    Location
    Key West, FL
    Posts
    2,350

    Default Re: Default Judgment

    Good point!

    They can name you personally as a defendant along with your business. If you don't show up, they don't have to bother piercing the corporate veil and meeting the evidence standards of that and having you challenge it. If they get a default judgment and they named you, they can go after everything you have now and for the next twenty years.

    If you are named in the complaint and summons, you should go to court to fight the personal liabililty. You can't appear for the corporation, but you can appear to fight for your own buttocks.

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