Judgment Defense

Judgment Defense

What is a Judgment?

According to the Consumer Financial Protection Bureau, In a debt collection lawsuit, a judgment is a court order that allows the debt collector to use stronger tools, like garnishment, to collect the debt.

Many of our clients hire us after a judgment has already been rendered against them. A Judgment is the court’s determination on a legal matter. In the case of our client’s the court has determined that they owe the Plaintiff creditor the money that was alleged in the lawsuit.

Many of our clients are unaware that the court will also grant the creditors request for court costs, attorney’s fees, pre and post judgment interest. Court costs vary from but typically range from approximately $50-$350. Attorney’s fee vary as well, but may be hundreds to even thousands of dollars. Pre-judgment interest is interest that has been accumulating while the account was in collections and was unpaid. Post-judgment interest is for interest that will accumulate after the court renders judgment and the account remains unpaid. Post judgment interest varies because it is set by statute and is associated with a market rate.

So why do so many of our clients come to us post judgment? Unfortunately, many of our clients have no idea that they were sued. When a Plaintiff files a lawsuit they are required to serve the Defendant with service of process. Simply put, Service of Process is the act of providing the Defendant with the allegations against them. The Plaintiff files with the court what is referred to as the Plaintiff’s Original Petition. This Petition to the court is asking the court to provide them with relief from the actions of the Defendant. In these debt claim cases, the Plaintiff is typically asking for monetary relief due to an unpaid debt from a loan, credit card or line of credit.

The attorney for the creditor then turns the documents to be served over to a private process server or Constable to complete service of process. Plaintiffs are also required to file a Non-military affidavit that swears that the Defendant is not serving overseas. The private process server or constable is then tasked with completing service of process. This varies by jurisdiction but typically requires handing the documents to the defendant in person. This typically does not happen in a public place, but at the last known address of the defendant.

There is a remedy for the Plaintiff if they allege that they are unable to serve the Defendant personally. Typically, if the private process server or constable make 3 unsuccessful attempts to serve the defendant, the attorney for the plaintiff will file what is referred to as a Request for Substituted Service. This allows the process server or constable to leave the documents at the last known address of the defendant and the defendant is considered served. This is typically where issues arise. The private process server or constable is required to sign an affidavit swearing under penalty of perjury that they have affixed the documents to the door or gate of the last known address of the defendant. However, many times the private process server will ditch the documents (What is often referred to as Sewer Service) and sign the affidavit. The case then proceeds and the defendant receives a judgment without their knowledge. It is only much later that the defendant discovers what has happened and then it is very difficult, if not impossible to prove.

If you find out that there is a Judgment against you, Do not try and resolve the matter on your own. Please reach out for a Free Consultation!

We may be able to help make sure that:

1. The Judgment is in fact resolved
2. The Creditor removes or does not place liens on property
3. The Creditor does not freeze and levy your bank account or unfreezes your account due to resolution
4. The creditor may agree to settle for less than the full amount owed in a payment arrangement.
5. The creditor may provide a Full Release of Lien.

Post Judgment Receiverships

What is a Receivership? A Receivership a legal process where a court appoints a third party to locate and take control of a businesses or individuals assets. Many consumers are not a familiar with Receiverships and do not believe it is legal. However, it is legal and consumers and business owners need to understand that the Receiver is an officer of the court and does not represent the opposing side.

What should you know about Receivership? Receiverships are very complex and advanced legal issues. Typically, once a judgment gets to a receivership, the remedies are few and they can be extremely difficult to overcome. A good example would be: If a judgment is cancer, Receiverships are stage 4. This does not mean that a business owner or consumer should give up and succumb to the Receivership. That would be like not seeking medical help because of a stage 4 cancer diagnosis. Just like with this analogy, a consumer or business owner needs to manage their expectations of the outcome.

The fact remains that consumers and business owners need to seek counsel when dealing with a receivership just like patients with stage four cancer need treatment of a physician. However, it does not mean that the Receiver will stop acting within the legal rights given to them by the court. Competent, well qualified legal counsel can assist business owners and consumers in navigating this process and bringing the matter to resolution. An Attorney will attempt to minimize the damage and to ensure the legal work is done to get a Release of Judgment, Release of Lien and make sure the business owner or consumer is in the best possible position moving forward.

If you are subject to a Bank Levy or Receivership, Contact us today for a free consult.