What's so bad about a judgement?

[rockyroad]

Ok, here's my situation....was sued by Amex for a very large biz debt. I dodged the process server for a good two months until a motion for substitute service was granted by the judge. They left the summons on the front door step.
So, I answered the summons with a general denial and answers to admissions and interrogatories. This has already bought me some time since I was officially served in early April.
I still need to stall a few more months for various reasons before I can file for Chapter 7.
If Amex is able to get a judgement before I can file, what are the conseqeuences?
I have no equity in my home, no equity in 6 mo. old vehicle and very little money in my accounts. No other assests in the dying biz either.
Basically, what's the worse that can happen other than they get their judgement and perhaps place a lien on my home? Oh, I'm in Texas so there is no wage garnishment in this state and homesteads and one vehicle is exempt.
I will just get the judgement vacated and lien stripped when I do file (with an extra fee to attorney, I know)
I would rather take the judgement and vacate later rather than risk any trouble with my Chapter 7.
Maybe I'm missing something here...but I'm just planning my BK very strategically.
I'm actually very calm about all this while so many others seem to be panicing about being served.

[albacore44]

I'm wondering

You seem to fully understand everything. One thing you can try to avoid getting a judgment is to ask the court for a continuance to XX date with a motion for a continuance and stipulated judgment if you don't provide the court with BK papers by a certain date. Just tell the court your not able to file at this time for financial reasons. You may very well get a judge that will grant you a continuance until you file. At that point the court would dismiss your case and no judgment would be entered and no judgment on your CR, no liens to strip or judgments to vacate. I think the court would really rather give you some time than waste all the courts time processing the judgment and then liens etc. They have nothing to lose if you don't produce a filed BK by the time the date rolls around you just tell the court you would agree to a stipulated judgment and that makes it really simple.

I have read about this, have no experience with it, anyone that knows about this please chime in.

Does the Plaintiff get a refund on their filing fees if the defandant files BK after the Plaintiff has filed a complaint and it is never heard before a judge ??

[All Cash]

Seems like you understand the process. The worst that can happen they get the judgment and place a lien on the property. Filing a Chapter 7 get the discharge have the judgment vacated and lien striped. Most attorneys charge extra for this service.

[LuciluS]

Does the Plaintiff get a refund on their filing fees if the defandant files BK after the Plaintiff has filed a complaint and it is never heard before a judge ??

Dh said I woke up this morning Cranky! Just told him you got me to laughing

Luci

[GoingDown]

Rocky Road, relax. You are judgment proof. You're lucky you live in Texas.

I would, however, clean out those checking accounts, etc., and start using money orders to pay bills with. If you have direct deposit, try to get paper checks instead and cash them instead of depositing them.

I have one judgment against me, and so far, they haven't received a penny of it. They have even stopped calling me about it. I guess they gave up trying to collect it because I am judgment proof.

[Bell30656]

You are not judgment proof, however you may be collection proof. Getting a judgment is just the first step in trying to take you money, possessions, etc. If you can avoid a judgment without having to spend a fortune doing so, I say do it even if you are in a state where wages can't be garnished.

After they get the judgment, then they file some more papers to compel you to reveal all your assets and other good stuff. You do have to show up for that one.

Delay is that name of the game right now. I was served for three lawsuits... Nov 2007, Feb 2008 and Nov 2008... I filed in Dec 2008. None of those lawsuits made it to court prior to the filing. The cost to me? Some certified mail fees and a $50 fee to an arbitration place.

[Clouddancer]

You seem to fully understand everything. One thing you can try to avoid getting a judgment is to ask the court for a continuance to XX date with a motion for a continuance and stipulated judgment if you don't provide the court with BK papers by a certain date. Just tell the court your not able to file at this time for financial reasons. You may very well get a judge that will grant you a continuance until you file. At that point the court would dismiss your case and no judgment would be entered and no judgment on your CR, no liens to strip or judgments to vacate. I think the court would really rather give you some time than waste all the courts time processing the judgment and then liens etc. They have nothing to lose if you don't produce a filed BK by the time the date rolls around you just tell the court you would agree to a stipulated judgment and that makes it really simple.

I have read about this, have no experience with it, anyone that knows about this please chime in.

I had an attorney tell me that AMEX could take the judgment from Texas to Arkansas because my companies payroll office is there. Has anybody ever heard of that happening?

[BigJohn]

I had an attorney tell me that AMEX could take the judgment from Texas to Arkansas because my companies payroll office is there. Has anybody ever heard of that happening?

Where your payroll check is generated from has nothing to do with your residency. Sounds like blowing smoke.

[BigJohn]

To the original poster: one bad side of judgements is that it is a permanent public record. If somebody knows were to look, they can see if you have had any judgements, etc.

[rockyroad]

I hate to have anything on my permanent record, but I may not be able to avoid the judgement (if they move that fast.) Looking over all the cases online, I see some default judgements, a couple settlements, and the ones that have filed answers with an attorney haven't made it into court yet (2008 cases).
I'ved also noticed that most AMEX suits in my county are high dollar debts...talking 100k or more. Not ALL of them, but a good majority if that helps any of you out there wondering what the liklihood is of getting sued by AMEX.

So far, answering the summons hasn't cost me a thing in the State of Texas. I filed everything pro se with the help from an attorney friend on the correct legal jargon to use.
I also spoke with the opposing counsel by phone to ask for an extension to file my answer. He flat out asked me if there was a chance in hell of settling for even half the amount I owe (it is six figures). He didn't threaten or pressure or use any scare tactics, just a very casual question as he said he knows AMEX would settle for about half, give or take. I told him I would have to consult with my bankruptcy attorney but I have no assets to liquidate and my business is no longer viable.
He made some small talk about how everyone is going through hard times, AMEX is going through hard times, the economy is lousy....and said once I hire my bankruptcy attorney to have him send him the intent to file document. For now, he would grant the extension and then keep doing what he needs to do on his part...which I guess is waiting to get me on the court docket once he receives the answer.

But back to the judgement and permanent record....once you have the judgement vacated, does it still appear on my record? Or does it have a status of vacated due to BK?

[rockyroad]

Does the Plaintiff get a refund on their filing fees if the defandant files BK after the Plaintiff has filed a complaint and it is never heard before a judge ??

According to the records, it only cost them $220 to file, and I guess whatever they are paying their local attornies. And believe it or not, they aren't filing against people that often (in my county) maybe 2 or 3 per month between all the AMEX divisions. Ceturion, AMEX FSB, and AMEX Travel

[All Cash]

To the original poster: one bad side of judgements is that it is a permanent public record. If somebody knows were to look, they can see if you have had any judgements, etc.

Judgments fall off your credit report in 7.5 years. It's rare that a judgment is renewed because the SOL has lapsed by then.