what can i do

[nms78]

What is the name of your state?alabama
I own a engine rebuilding shop, and an a llc in alabama. bottom line is I took in a boat job for less that 200.00 to bore it, i informed the customer(that wanted to get his own parts) that we would need to go .030 bigger because its the only way to get it true, but you must have at least .010 of metal to bore, he showed up with pistons too small and wanted me to make it work. He also went ahead and installed his pistons at home while waiting on the block. I couldnt make it work, and he couldnt send his pistons back, so he had to take the block to another shop, have it bored .030 and buy new pistons, he sued me in small claims for 1296.00, i lost my notice and called the court to get the date and time twice before court, they told me twice it was the 24th, the case was the 23rd, i did not show on 23rd and he won by default. i know i did not do this customer wrong, and i can honestly say this. i filed a motion to set aside, was denied. now what are my options on paying. i am a llc and the business is still new and upside down, and have no assets. thank you in advance for you help

 

[quincy]

Could you take out a loan to pay off the judgment?

Unfortunately, even though it appears you could have presented a good defense to the claim, you missed the hearing date.

 

[nms78]

i am strapped out for cash. everything is tied up in this business. im still in my 14 day appeal window, but it i will have to put up a bond to secure court costs when i file. i tried everything i could to make this right with the customer and spent over 700 on tooling to try to do something that i knew couldnt be done because he made me feel so bad about it. i even purchased him a new block and he picked up his and said you will be hearing from me. his son is a attorney and i have been in business for 6 years now and completed over 5000 invoices and never once been sued. im having a financial hardship right now and cant pay and more over dont want to pay because after the 1296 i will have been out a total of 1976 on a job that i made 175 off of.

 

[nms78]

i know its my fault i lost the paper, and i know its still my fault that i was told the wrong date twice and didnt get the name of who i was speaking with im just not able to pay it and payroll every week, multiple taxes, and feed my wife and kids, is this really what the justice system is about

 

[quincy]

i am strapped out for cash. everything is tied up in this business. im still in my 14 day appeal window, but it i will have to put up a bond to secure court costs when i file. i tried everything i could to make this right with the customer and spent over 700 on tooling to try to do something that i knew couldnt be done because he made me feel so bad about it. i even purchased him a new block and he picked up his and said you will be hearing from me. his son is a attorney and i have been in business for 6 years now and completed over 5000 invoices and never once been sued. im having a financial hardship right now and cant pay and more over dont want to pay because after the 1296 i will have been out a total of 1976 on a job that i made 175 off of.

Your business was not/is not insured?

I am afraid with the default judgment, your options are limited.

 

[nms78]

no im a specialty shop according to just about every insurance company in the country

 

[nms78]

have never been able to find a company that would accept me, im not auto repair because the cars are not in my shop, just engines and im not a machine shop because i dont manufacture
im in a grey area

 

[PayrollHRGuy]

You need to find a better insurance agent. There are carriers out there and running a business such as yours without insurance is crazy.

 

[quincy]

have never been able to find a company that would accept me, im not auto repair because the cars are not in my shop, just engines and im not a machine shop because i dont manufacture
im in a grey area

Ah. Well, that is unfortunate.

You could appeal. You can file an "Affidavit of Substantial Hardship" with the court, which (if you are eligible) would help you avoid having to pay the bond. But first you will want to review your evidence. If you don't think you can win on appeal, you will only delay payment to the fellow.

If you cannot pay the judgment, the guy can get an "execution" or "garnishment." Your assets can be attached, sold to satisfy the debt, or your wages could be garnished until the debt is paid.

If there is a legal aid clinic in your area, you might find some legal assistance there.

Good luck.

 

[nms78]

im aware of what he can file, cant i legally make him payments, as long as i am showing an effort to satisfy the debt as quickly as i can then can he still file the execution

 

[nms78]

im 75 percent sure i can win on appeal

 

[quincy]

im aware of what he can file, cant i legally make him payments, as long as i am showing an effort to satisfy the debt as quickly as i can then can he still file the execution

With the judgment, he can fill out an execution of judgment or garnishment form with the court if you haven't paid the judgment within 14 days or filed an appeal within 14 days.

It is possible he would agree to a payment plan - but he doesn't have to.

 

[PayrollHRGuy]

Did he sue you or the LLC?

 

[nms78]

my llc

 

[quincy]

If you set up your LLC properly and have made sure to keep your business separate in all ways from your personal property/assets, your personal property/assets should be safe from collection efforts. Not safe will be the LLC's assets and accounts.

Because you have a limited time to respond if you plan to appeal, I recommend you consult with an attorney in your area. You could find free help from a legal aid clinic.

Good luck.