What to Do if You Get a Default Judgment

If you are like many (actually virtually) of the people who get sued past a debt buyer you probable didn't respond to the lawsuit and now are faced with the unpleasant reality that a default judgment has been entered against yous.  In fact, statistics show that more than 90% of people who are sued by debt buyers don't file a response with the court.  The danger of allowing a default judgment against you is once this occurs the debt buyer can garnish your wages and your bank accounts.

So what exactly is a default judgment?  After yous are served with a lawsuit you have a certain amount of fourth dimension to respond (usually twenty-30 days depending on your jurisdiction).  If you don't submit a written answer to the lawsuit the court can enter a default judgment giving the debt heir-apparent everything they are asking for.

Sometimes people get served with a lawsuit and don't know what to practice, so they do nothing.  Other times the debt buyer gets permission to serve a person through the mail service and mails the complaint and summons to the incorrect accost.  I meet with people ever week who are getting their wages and banking concern accounts garnished and didn't even know a judgment had been entered against them.

And then, if a default judgment has been entered against you, what do you practice now?  You accept a few options.  First, yous can inquire the court to ready bated the default judgment and give you an opportunity to competition it.  Adjacent, you tin can settle the debt with the debt heir-apparent for an corporeality less than what the default judgment is for.  And finally you can eliminate the default judgment completely past filing for bankruptcy.

Ask the Court to Set Bated the Default Judgment

If you believe that the default judgment shouldn't have been entered confronting you or that at that place was some other sort of fault you lot tin enquire the courtroom to set the judgment aside and let you fight the lawsuit.  Even so, just whatever old reason won't exercise.  There are sure basis on which a court can fix aside a default judgment.

The first identify you need to look is the Rules of Civil Procedure for your land.  Nearly land's rules are based upon the Federal Rules of Ceremonious Procedure.  Look at Rule 60 which is likely entitled "relief from judgment or lodge" or something similar.  Dominion 60 provides vi reasons that a court can fix aside a default judgment:

(1)   Mistake, inadvertence, surprise, or excusable neglect;

(2)   Newly discovered bear witness which by due diligence could not take been discovered in the prior proceeding;

(three)   Fraud;

(4)   The judgment is void;

(5)   The judgment has been satisfied, released, or discharged;

(vi)   Any other reason justifying release from the judgment.

Regardless of the reason you are request the court to set aside the judgment, you need to act quickly.  The longer you wait to ask the court to set bated the judgment the less likely you will exist successful.

Whether you are successful or not largely will depend on the specific facts of your case.  Information technology is also important to understand that if you were simply negligent in failing to reply (i.e., I forgot, didn't go around to information technology, didn't feel information technology was necessary – all bad excuses) you will likely not be successful in getting the default judgment gear up aside.

Setting aside a judgment can be a difficult process.  Many judges do not like to undo what has already been done.  However if in that location are serious problems such every bit you didn't get served properly with the lawsuit or if you can show that they have sued the wrong political party, you accept a good shot at getting the court to reconsider.

Settling the Judgment

If yous don't have a good reason to have the judgment set aside or if you inquire the court to gear up aside the default judgment and are non successful then you many desire to see if you tin can settle the judgment.  In one case a judgment has been entered yous have lost much of the leverage you would have had in settling the debt.  At this point the debt heir-apparent or creditor has taken the time to go through the legal process and will be less likely to settle for a low corporeality.

In settling a debt yous need to found a budget of what you are able to do either in a lump sum or on a monthly basis.  If you can afford to pay a large portion of the debt in a one time lump sum payment you will be able to settle it for less than if you are wanting the debt buyer to accept payments over time.  Alternatively, if you are going to need to pay the judgment off in payments yous volition likely stop upwardly paying most of the judgment amount.

Bankruptcy

When I meet with clients over debt heir-apparent lawsuits I will enquire them if there are other debt problems.  If this lawsuit y'all are now dealing with is just the tip of the debt iceberg you may want to consider bankruptcy.  A chapter 7 bankruptcy volition eliminate non only the judgment simply most of your other debts besides.  No i wants to file for bankruptcy, but many times it is the only real option for dealing with your debt problems.

I don't hateful to sugarcoat it.  If you have a judgment entered against you it tin be difficult to get the court to prepare information technology bated.  Difficult, but not impossible. The best option is to avert the default judgment from beingness entered in the first identify past drafting and filing an Reply to the lawsuit.

Proven Strategies for Dealing with a Default Judgment

If you are dealing with a default judgment there ways to fight back.  I have prepared an online video course entitled "Proven Strategies for Dealing with a Default Judgment".  Bank check it out by clicking HERE.

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Source: https://skibalaw.com/what-to-do-when-a-default-judgment-has-been-entered-against-you/

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