creditor's lawyer obtained judgement after filing

[bankruptsee]

I got a letter from the court stating that this creditor has recieved a default judgement for $1400.

I've filed and have had my 341. I called my lawyer but the receptionist said that she'll look into it tomorrow and get back to me.

The creditor is listed as the plaintiff and is listed on my matrix... there has been no other filing on pacer besides the trustee's report of no dist.

What do you guys think will happen... I mean, they can't do anything right?

The debt that they've recieved the judgement for will be discharged.

I know that the creditor recieved notice of my bk because they've stopped calling (they were a once-a-day caller)

[AngelinaCat]

If that judgment order was granted after you filed BK, that is illegal. When your creditors were mailed the "Suggestion of Bankruptcy" paperwork, that should have stayed any and all court actions.

Your laywer has a good chance to nail this creditor. The judgment against you should be vacated. But these are things you need to talk with him/her.

[AngelinaCatHub]

I HAVE to agree with Mrs. C. The Judge will set the Judgment aside if you send the dated bk paper to him along with the time line. In any case, the Judgment will be released.

We got a Judgment the same day we got a summons to appear in 20 days. It was a clerical problem and the Judge reversed it immediately. 'hub

[music12]

that judgment is void. did they file the complaint before you filed bk? if so, the attorney who filed it neglected to inform the court. and then, either the default entered because you didn't show, or the lawyer actually showed up and obtained the default without telling the court that you filed bk. either way, it's a big no-no. the second this lawyer knows personally about the bk, the lawyer will void the judgment or face consequences in bk court. don't worry.

[bankruptsee]

Thanks for the responses!

I'm sure my lawyer will nip this in the bud tomorrow, she's been great so far and we're almost through... 20 or so days to go

[justbroke]

The judgment isn't automatically void. You and/or your lawyer have work to do. The easiest thing is for your lawyer to send the creditors attorney a letter indicating that they have 5 days to withdraw the complaint and to voluntarily have the judgment voided. If not, your lawyer would then file with the BK court for contempt (violation of the automatic stay) and seek fees and potentially other damages.

This usually motivates the creditor's attorney to move quickly! It's easy money for your lawyer to make if he has to litigate this. That's why most attorneys will write the letter at no charge.

[music12]

i think i disagree with justbroke! but just on a technicality:

"11 usc 524:
(a) A discharge in a case under this title—
(1) voids any judgment at any time obtained, to the extent that such judgment is a determination of the personal liability of the debtor with respect to any debt discharged under section 727, 944, 1141, 1228, or 1328 of this title, whether or not discharge of such debt is waived;"

so i think the judgment IS automatically void, just like the stay of that court proceeding was automatic. but, as justbroke says, the court must be informed of that fact so that they won't mistakenly attempt to enforce it.

so i think i disagree with justbroke only about the definition of "automatic": justbroke looks at it practically, i look at it theoretically. either way, the creditor violated the law and the steps to be taken are the same.

cheers!

[music12]

hmmm, i guess since the OP is not yet discharged, that statute i cited has not yet voided the judgment... anyway, doesn't matter.

[justbroke]

so i think i disagree with justbroke only about the definition of "automatic": justbroke looks at it practically

Well, your disagreement isn't a disagreement. While it may be void ab initio, there is still work to remove it from the other Court. It doesn't not "automatically" clear it from the other Court, and a creditor might still seek garnishments, although they should not be.

The code doesn't even use the word "automatic" because it implies that there is nothing to do.

As to the Stay, while "automatic" and the code actually uses the word "automatic" to describe it, there is a notification actually sent to all creditors. As to a proceeding in another local court, there is no automatic notification that the "judgment" was discharged in a case under Title 11. I think that's an important distinction.

That's why I don't like the word "automatic" when talking about discharge of judgments.

[2manybills]

I would file a "notice of stay pursuant to bankruptcy" with the court where the judgment is pending. It will take your lawyer 20 seconds to prepare and file it with the court. Then the creditor, the court and anyone else has notice that the case has been stayed due to bankruptcy.

[music12]

justbroke, i think you are right, my disagreement was not a real disagreement. so, we agree again!

as 2manybills says, filing what's called a "suggestion of bankruptcy" with the court is very easy. in fact, it could simply involve mailing or faxing the 341 notice, or another document generated on pacer that's called notice of bk filing, or something like that. the only thing a cover letter is even needed for is to put the docket number of the state court on it.