Judgments, Wage Garnishments, Bank Freeze

If you have been served with a summons and complaint or summons and notice by a creditor time is of the essence. Typically, after you have been served, you have a certain amount of time to respond to the summons and complaint or notice with an answer. If you fail to respond within the allotted time, you risk the creditor obtaining a judgment by default, i.e. a "default judgment." This is a risk many defendants are unaware of.

A judgment entered against you can result in the creditor freezing bank accounts, repossessing a car, garnishing wages, or even foreclosing on a property. Legally, when a creditor institutes a lawsuit against you the creditor is required to notify you of the lawsuit by serving you in a particular manner. In addition, if the creditor obtains a judgment against you the creditor must provide notification of the judgment. If you have notification that a judgment was rendered against you, however, you did not get served and receive proper notification of the institution of the lawsuit, an attorney can use this fact in your favor when arguing to the court that the judgment should be vacated. There are a number of options for those that have had a judgment entered against them, all of which can be reviewed in a free consultation at our law firm. If a creditor has instituted a lawsuit against you, you have the right to defend that lawsuit and prevent the rendering of a judgment in the creditor’s favor. Seeking professional legal advice from our firm is your best option for success.

Judgment Overview:

A judgment is the final decision rendered by court in a lawsuit, criminal prosecution, or an appeal from a lower court’s judgment. There are various legal requirements that must be met in order for a judicial judgment to be valid. For example, it must be made by a competent judge or court at a time and place appointed by law in the required form. The judgment must also confine itself to the question raised before the court and cannot extend beyond it. If the judgment is appealed, the appellate court generally reviews the law applied by the lower court, and will not disturb the factual findings.

The individual or entity that a money judgment is rendered against is called the "judgment debtor." The individual or entity that a money judgment is rendered in favor of is called the "judgment creditor." If the judgment debtor fails to pay the judgment, the judgment creditor may file a judgment lien, and consequently have the judgment debtor’s assets sold to pay off the judgment.

Default Judgment:

A default judgment is a judgment obtained without the defendant ever having appeared in court or filed any papers. Essentially, a default judgment is one that the party who instituted the lawsuit obtains by virtue of the other side never showing up (similar to a forfeit victory in sports).

The rate of default judgments in New York debt collection cases is extraordinarily high. One recent study of over 180,000 collection lawsuits in New York City found that the consumer did not appear in over 90% of these cases.

In debt collection cases, a default judgment in a lawsuit can provide debt collection agencies with an easy, uncontested victory for the amount of damages originally filed for in the complaint. Consequently, in order to facilitate this process, debt collection agencies have been known to conveniently fail to serve debtors with their lawsuit papers. This is often referred to as "sewer service." Default judgments obtained in this manner are an illegal debt collection tactic.

Freezing of Bank Accounts:

When a creditor is seeking payment on a debt, that creditor has the power to freeze the debtor's bank account. Once the creditor notifies the bank of their request, the account will immediately freeze without warning to the debtor. This means that whatever the amount of money that creditor chose to freeze in your bank account will be inaccessible. The creditor can freeze up to two times the amount of your debt, and can freeze any additional money that you deposit into your account afterwards. Unfortunately, if you share a joint account with a judgment debtor your funds can be frozen as well. Thus, it is recommended to not share an account with someone undergoing debt issues. Our firm will help you take the immediate action in order to remedy the situation. In cases where the freeze is made from a default judgment, there is a good chance we can reverse it, in turn, releasing your funds.

Repossession:

Repossession is where a lender or bank claims ownership to a piece of property that was pledged as collateral for a loan. Repossessions commonly occur due to non-payment of the loan. A creditor may also repossess property if they obtain a judgment. New York law provides that a lender who repossesses an automobile must give the borrower notice or the repossession. If the lender repossesses a vehicle, within 24 hours, the lender must personally notify the borrower or send the borrower a form of special-delivery mail informing the borrower of what occurred. If a creditor has failed to properly notify the borrower of the repossession in this way, the borrower may be able to fight the repossession. Many other grounds are available to fight repossession. Our firm can help you get the justice you deserve.

Breach of Peace:

A "breach of peace" occurs when a creditor uses physical force, or threats of force, while seizing your vehicle. Taking your car against your protest or removing it from a closed garage without your permission may also constitute a breach of peace. This is illegal and the creditor can face serious consequences. Aside from having to pay a general penalty, if any harm is done to you or your property the creditor may have to provide compensation for the damages. The creditor can also lose the right to collect a "deficiency judgment," which is the monetary difference between what you owe on your lone and what your creditor receives when reselling your vehicle.

Wage Garnishment:

Wage garnishment is a legal procedure in which a person’s earnings are required by court order to be withheld by an employer for the payment of a debt. While this is often a creditor’s last resort, it can have a devastating impact on your finances. However, there are solutions. If your wages have been garnished you will have the opportunity to challenge the amount or assert exemptions. Nevertheless, you are in the best position to prevent a wage garnishment from occurring when you are initially served with the lawsuit. While the lawsuit is pending, creditors are often willing to negotiate payments and/or payment plans to resolve the debt. It is at this point when you may be able to reduce the amount owed and avoid garnishment.

Judgment is not spelled "Judgement", the title of this web page was intentionally made Judgement due to the common misspelling of Judgement in place of Judgment.

Ronald S. Cook is a Bankruptcy Attorney that proudly serves New York City, Manhattan, Nassau County and Suffolk County on Long Island, New York, NY. We offer reasonable rates and payment plans. CALL US TODAY AT 631-265-0102 or EMAIL US FOR YOUR FREE BANKRUPTCY REVIEW.

Bank Freeze or frozen bank account

This occurs when a creditor gets the right to come after you for money deposited in a bank account that has your social security number on the account. Contact use RIGHT AWAY if this happens because you have limited time to take specific actions to reclaim those funds.