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How Does Default Judgement Work?

Date: Tue, 06/22/2010 - 14:32

Submitted by anonymous
on Tue, 06/22/2010 - 14:32

Posts: 202330 Credits: [Donate]

Total Replies: 5


My question involves collection proceedings in the State of: New York

Last weekend, I got a summons from a credit card transaction court, summoning me to court within 20 days.

The court where the summons was requested is around 4 hours away (i used to live there). not wanting to appear, I called up the debt collection company and negotiated a settlement. The guy took down my account and routing numbers and told me that he'd be sending paperwork. I would have to sign it and notarize it and send it in.

He assured me that while this process was taking place I wouldn't need to appear in court and that no default judgement would be entered against me.

Does this sound right? Can they "suspend" a summons until I sign and return the paperwork?


ok, a couple of follow up questions:

1. if i do answer... can i do that over the phone or by mail? or do i have to appear in person?

2. if they do sneak in a default judgement, does that gaurantee that they will start garnishing my wages, etc? it was a $2000 debt.

thanks!


lrhall41

Submitted by on Wed, 06/23/2010 - 06:25

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Quote:

1. if i do answer... can i do that over the phone or by mail? or do i have to appear in person?
No, you need to send them a written answer. A form to file the answer generally remains attached to the original summons, and complaint served to you. However, if it's not there, you can visit the court, and request the court clerk to help you in filing the answer to the summons. You can also mail in a copy of the answer. You will also have to appear in person in the court on the stipulated date.

Quote:
2. if they do sneak in a default judgement, does that gaurantee that they will start garnishing my wages, etc?
If they win a default judgment against you you will have to pay the judgment amount generally within 30 days. If you fail to pay that they will garnish your wages, or bank accounts, or may even put a lien against your property.


lrhall41

Submitted by SC on Fri, 06/25/2010 - 02:43

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SoapLady is write You can file a "motion to dismiss" for wrong venue or in the alternative, file an answer but make it the in the form of an objection. Also disclose to the court your settlement agreement. You must answer in writing, sign and date the paper, send the original to court and a copy to the debt collector. Keep a copy for your records. You must also state that you sent a copy to the debt collector along with the actual date of mailing called "certificate of service" all court documents require this disclosure.

Personally, I wouldn't wait on the collection company. He's going to send you a "stipulation agreement" - make sure you understand it before you sign. And you might also want to add to the stipulation that you want them to mark this account "paid as agreed" on your credit report.

Since you've agreed to settle, they need to immediately notify the court of the settlement agreement. Once you've signed the stipulation, they'll file it with the court. Case over.
In the meantime, stay on top of everything and make sure they do their job.

Sara Goodman
DebtExecutioner


lrhall41

Submitted by on Fri, 06/25/2010 - 03:52

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