Default Judgements

How to Combat a Default Judgement?

There exist solely three methods to eliminate a judgment:

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File Motion to Vacate: If a judgment is entered against you without proper notice, you have the option to request the court to "set it aside" and allow you to defend the case. This process requires a court order and a hearing in front of a judge. However, it is important to note that this is a complex procedure that necessitates the expertise of an experienced attorney who has successfully handled such cases numerous times. At Orr Legal, we have handled thousands of these motions and are well-versed in what judges look for. In most instances, our clients do not need to personally appear in court. If the judgment is vacated, you will then have the opportunity to litigate the case and significantly improve your chances of resolving it to your satisfaction. The mere threat of a Motion to Vacate from from us can lead to a better settlement. Once you become aware of a potentially defective judgment, you typically have a six-month window to file the motion. After this period, most judges are unlikely to grant your motion, even if it is evident that you were not properly served and even if you do not owe the debt.

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Settle: When a judgment is settled, it is essential to obtain a filed Satisfaction of Judgment  in return. This specific court form must be submitted at the courthouse by the judgment creditor, as debtors are not authorized to file it. Judgments can be considered "satisfied" by paying less than the full amount, but it is crucial to have a written agreement with the judgment creditor. Unfortunately, creditors are known for not honoring verbal agreements, avoiding written settlement agreements, and neglecting to file the Satisfaction of Judgment when necessary. It is crucial to avoid a situation where you believe the judgment is settled, complete all payments, and then find out that the creditor demands additional payment.

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File Bankruptcy: The successful conclusion of a bankruptcy filing will result in the elimination of the majority of judgments, with exceptions including judgments for fraud, tax liabilities, elder abuse, and student loans. Additionally, a bankruptcy filing will impose a stay on all wage garnishments, levies, and other judgment enforcement actions, making it often the quickest and most cost-effective method to resolve a judgment. It is crucial to meet the qualifications for bankruptcy, as there are various consequences associated with filing for bankruptcy. Furthermore, it is essential to understand that discharging a judgment in bankruptcy does not automatically discharge or remove judgment liens on real estate. A judgment lien is a distinct legal document that becomes secured when recorded against real estate before any bankruptcy filing. Consequently, most judgment liens will still need to be addressed even after a bankruptcy.