Default Judgments And Wage Garnishments Can Be Attacked and Undone
Just because a creditor has obtained a default judgment against you and has started garnishing your wages or levying your bank account does not mean that all is lost. You have multiple options available to you including, Setting Aside the Default Judgment, filing a Claim of Exemption, and Bankruptcy.
Setting Aside a Default Judgment
A Default Judgment can be set aside if you were not given proper notice of the lawsuit such that you had an opportunity to defend yourself in court. The law imposes strict time limitations within which you must move to set aside a defective default judgment. These rather short time limitations must be met, or you could be forever barred from taking such action.
Claim of Exemption
A Claim of Exemption is a request to the court to exclude all or part of your wages from being garnished. As with a default judgment, the period to file a Claim of Exemption is very short and a failure to timely file the Claim, could prevent you from obtaining relief from the Court for the garnishment or levy.
Bankruptcy
Bankruptcy has also been a viable option for many of our clients. A bankruptcy filing will immediately result in the court suspending all wage garnishments, levies, and other judgment enforcement actions. If a creditor persists with their efforts to collect during this period, the creditor may be held in contempt for violating the court’s order and may have to pay sanctions. If you qualify, bankruptcy may be the most expedient and least expensive way to get rid of a judgment.
Featured Case Studies
- OC Sheriff’s Deputy Never Served. An HOA obtained a default judgment after having claimed to have served an Orange County Sheriff’s Deputy. The Deputy was on duty at the time of the alleged service. Through our efforts, we were able to suspend the garnishment order and set aside the default judgment allowing the Deputy an opportunity to present his defense to the lawsuit. Court Case Number: 30-2015-00783XXX
- Texas Client who previously lived in California. At the time the creditor claimed it served our client, he was no longer living in California. The creditor obtained a default judgment against our client in the amount of $16,096.91. Our client only first discovered the existence of the lawsuit and judgment after his bank notified him that it had received a levying order. We were able to successfully convince the creditor to voluntarily withdraw the default judgment and allow our client to respond to the lawsuit. The lawsuit eventually settled for less than 10% of the debt. Court Case Number: 30-2010-0041XXXX
- Elderly Client on Fixed Income. An elderly client living exclusively off social security income was sued by a creditor for $5,574.64. The client was never served resulting in the Court vacating the default judgment against our client. The creditor eventually dismissed the case against our client without our client having to pay anything to the creditor. Court Case Number: 30-2016-00868XXX
Call Us Today And Tell Us Your Story.
At no cost to you, you will have the opportunity to speak with an experienced attorney at the Consumer Justice Law Center to discuss your options and help you come up with a plan tailored exclusively to your individual circumstances.