Judgement defaulted against me, but I'm the wrong person.

[bdf279]

I live in the state of Virginia. I worked for a construction company (that was incorporated) that went out of business and filed for bankruptcy. My husband's father owned the company, but neither of us had any interest or stake in the company. We were simply employees. During bankruptcy proceedings, I was served a warrant in debt by a former customer for $16,000 in unfinished work that they had paid for. It was written as against me, the company's owner, and the company. The lawsuit is perfectly legitimate, however, I have nothing to do with it. I was the receptionist, so I suppose they served whoever's name they knew. I called the company's bankruptcy attorney and was told not to worry about it, don't show up to court, they would take care of it. Here, several months later (no more than 6 months), I see a judgement on my credit report. After contacting another attorney, I completely understand I should have gone to court, but I can't change that now. There must be something I can do now, though? It can't be legal to force me to pay $16,000 to someone I've never even met before, much less done any sort of deal with, just because I didn't show up to a court date? There must be some sort of action I can take to have this thrown out. I have contacted an attorney and he is working on it, but at the same time I am doing my own research as well. Are there any ideas as to what actions i can take? They have no evidence whatsoever suggesting a deal between me and them, and I have no ties, nor have I ever had any ties to my former company's contractual obligations.

 

[single317dad]

You need to sit down with an attorney and first determine the status of the bankruptcy, then determine the status of the alleged debt within said bankruptcy, then determine the best course of action.

Since you didn't show up for court, the plaintiff got a default judgment against you. Next, they will take steps to recover the funds due them, including but not limited to seizure of bank accounts and personal property (subject to exemptions) and wage garnishment. Get this taken care of with an attorney who actually represents you.

 

[bdf279]

You need to sit down with an attorney and first determine the status of the bankruptcy, then determine the status of the alleged debt within said bankruptcy, then determine the best course of action.

Since you didn't show up for court, the plaintiff got a default judgment against you. Next, they will take steps to recover the funds due them, including but not limited to seizure of bank accounts and personal property (subject to exemptions) and wage garnishment. Get this taken care of with an attorney who actually represents you.

Luckily, I have a bit of time, I believe. I have moved to Florida (not from running from this, I was actually served during the process of the move), so that likely complicates this for them, from what I understand. Our home in Virginia sold already and was in my husbands name so we got all of those funds, all vehicles are in my husband's name. As far as bank accounts, we for the most part have no money in our accounts.

We have already had consultations with an attorney and he is representing us, and have gone as far as we can go right now. It's in our attorney's hands. I was just basically here wondering if anyone can give me peace of mind that people can't just get sued for thousands of dollars with no evidence, just because they missed a court date, and don't even get the chance to say "that's not even my name on the contract." We're paying whatever needs to be paid and seeking whatever help we need to get, I'm just hoping there is some way to get this taken care of.

 

[Mark Maroon]

Luckily, I have a bit of time, I believe. I have moved to Florida (not from running from this, I was actually served during the process of the move), so that likely complicates this for them, from what I understand. Our home in Virginia sold already and was in my husbands name so we got all of those funds, all vehicles are in my husband's name. As far as bank accounts, we for the most part have no money in our accounts.

We have already had consultations with an attorney and he is representing us, and have gone as far as we can go right now. It's in our attorney's hands. I was just basically here wondering if anyone can give me peace of mind that people can't just get sued for thousands of dollars with no evidence, just because they missed a court date, and don't even get the chance to say "that's not even my name on the contract." We're paying whatever needs to be paid and seeking whatever help we need to get, I'm just hoping there is some way to get this taken care of.

First of all, the longer you wait, the worse it gets, so I wouldn't say that you have a bit of time. Second, unless you plan never to have any money in the bank in your own name, and never to have need of good personal credit, then you need to take care of this now. Third, you cannot just leave things in the hands of your attorney because blindly taking the advice of an attorney and leaving things in the hands of an attorney was what got you into this problem in the first place (to your credit you say that you are here to learn more so you are more prepared in dealing with your attorney, and that's a good thing). Fourth, we cannot give you peace of mind because unless you take action your "but I didn't do it" defense won't help you in any way.

The first thing you have to make sure of is that you were named as a defendant. I assume that you were, because you state that; "It was written as against me, the company's owner, and the company". Second, you need to make sure that you personally were properly served. I assume that you were, but you need to make sure that you personally, not just the company, were properly served. Third, you need to determine if "the company's bankruptcy attorney" that you spoke with was representing you personally when he advised you not to defend yourself against the suit. If so, then you might have a cause of action against that attorney. Fourth, you should find out what your father-in-law's personal status is in this case. The company declared bankruptcy so they are off the hook, you didn't do squat so you might well be on the hook, but what about your father-in-law (who was also named as an individual defendant). Did your father-in-law file personal bankruptcy? Did your father-in-law defend himself against the suit personally? Does your father-in-law have a personal judgment against him in the case like you do? If your father-in-law has a personal judgment against him in the case like you do, then see if he will pay it, or if he is going to let you be saddled with it.

 

[PaulMass]

My guess is that your attorney will file a motion to vacate the default judgment based on excusable neglect. You may have to throw the bankruptcy attorney under the bus to accomplish this. If that is granted, the case is reopened and you get to fight it as you should have in the first place.

Courts generally don't like default judgments and prefer the case to be heard on its merits.

 

[single317dad]

I was just basically here wondering if anyone can give me peace of mind that people can't just get sued for thousands of dollars with no evidence, just because they missed a court date, and don't even get the chance to say "that's not even my name on the contract." We're paying whatever needs to be paid and seeking whatever help we need to get, I'm just hoping there is some way to get this taken care of.

It happens every day. Debt collectors are an opportunistic bunch; they'll take their judgments however they can get them. Every single day in this country there is a default judgment against someone who doesn't actually owe the debt (though that number pales in comparison to those who do owe and refuse to pay). When you're sued, and the court determines you were served, and you don't go to court, you lose.

Listen to your current attorney. We here are unable to second guess him. You're wise to educate yourself on the matter. I'm sure that with your attorney's help you will get to the bottom of this issue.

Here is some information on property seizure in Florida. It is geared toward the creditor, but will give you an idea what could and could not happen. Keep in mind you are a long way from this step right now, and hopefully will not ever get this far:

http://www.clerk.co.okeechobee.fl.us/PDF%20Files/How%20To%20Collect%20a%20Judgment%20In%20Florida.pdf

http://www.clerk.co.okeechobee.fl.us/PDF Files/How To Collect a Judgment In Florida.pdf

Here is information on enforcing foreign judgments in Florida, as an example of what your creditor must do to collect anything from you:

http://www.floridabar.org/divcom/jn/jnjournal01.nsf/Author/5DBDE999AF04EF9885256ADB005D631D

http://www.floridabar.org/divcom/jn/jnjournal01.nsf/Author/5DBDE999AF04EF9885256ADB005D631D

 

[TigerD]

The advice you received thus far isn't bad. But there are a few things that should be clarified.
1. This isn't debt collectors - single317dad. This was a lawsuit.
2. The OP is not the wrong person. The OP chose to not defend herself.
3. The OP may have a malpractice claim against the company's bankruptcy attorney - it is worth discussing that with another attorney.
4. The OP has a significant hurdle - she was aware of the suit. She was properly served. And she ignored it. Without more information, she is going to have to pay the judgment. There is a penalty for sitting on one's rights and ignoring the court.

TD

 

[bdf279]

Thanks for the advice so far, everyone. Let me be clear that I'm not just sitting on this taking my time. I'm only here because I want to make sure I am in fact doing all within my power to correct this. My attorney says his first plan of action is to contact the plaintiff's attorney and see if this can be worked out that way, to have me removed from the lawsuit on the simple act of notifying them that they made a mistake. After that, we'll try something else.

My father in law has filed for personal bankruptcy as well. The company's bankruptcy proceeding has already taken place. Every lawyer I have spoken to claims "there has to be a way to get this resolved" but none seem to be sure exactly how.

 

[TigerD]

Every lawyer I have spoken to claims "there has to be a way to get this resolved" but none seem to be sure exactly how.

Pay the judgment and sue the company's BK attorney for malpractice.

TD

 

[bdf279]

I have nothing in writing, no proof that he told me not to attend court. I have one witness. Doesn't seem to me my chances are too great on that? A simple motion to vacate based on not being the registered agent for the company isn't a possibility?

 

[bdf279]

Paying the judgment is not an option. I'm 22 making 20k a year with a kid and haven't had more than $1000 in my bank account ever, nor any car or real estate in my name. They literally have no shot at collecting this because I have no shot at paying it.

 

[Mark Maroon]

I have nothing in writing, no proof that he told me not to attend court. I have one witness. Doesn't seem to me my chances are too great on that?

You probably don't have a good case against the bankruptcy attorney who advised you not to respond to the complaint. First, as you say, it would be your word against his as to what advise he gave to you. But in addition, we don't know your relationship with the attorney in it's entirety, and it's not clear that he was even able to advise you, since you may not have even been his client. In fact, if he was retained by your father-in-law to represent your father-in-law and/or his company, then the attorney's goals could have been at odds with yours. He may not have behaved 100% ethically in his dealings with you, or he may have been incompetent in his dealings with you, but his duty might have been only to the company, and not at all you.

A simple motion to vacate based on not being the registered agent for the company isn't a possibility?

I think you're confusing issues here. A plaintiff can serve a defendant company by serving the company's registered agent. But if a plaintiff has a beef with a company, they can't sue a registered agent just because they are the company's registered agent. The plaintiff didn't name you as a defendant because they thought you were the registered agent. They presumably named you as a defendant because they thought you had some direct liability for whatever it was they were claiming is owed to them. They may have been wrong about that, but you didn't tell the court why they were wrong about that, so they got a judgment against you.

 

[OHRoadwarrior]

Unless OP signed an agreement to be represented by the companies lawyer as a named employee, he is not her lawyer and has not committed malpractice.

Pay the judgment and sue the company's BK attorney for malpractice.

TD

 

[bdf279]

Alright well, thanks for input. I guess what I got from this is mostly what I already knew, that I screwed up and I hope it doesn't cause me to get mugged for $15k. Like I said, I'm going to hope the legal system has ways around that and just keep throwing money at attornies and hope they can fix it while remaining vigilant myself in researching.

 

[Zigner]

Alright well, thanks for input. I guess what I got from this is mostly what I already knew, that I screwed up and I hope it doesn't cause me to get mugged for $15k. Like I said, I'm going to hope the legal system has ways around that and just keep throwing money at attornies and hope they can fix it while remaining vigilant myself in researching.

If you are not able to get this fixed, then you may be able to sue the company. This cause ofaction happened AFTER the BK filing - you would definitely need to speak to an attorney.