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adversary hearing from default judgment

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  • adversary hearing from default judgment

    Long story- but basically was a business owner. Employed a manager (salaried)
    with documentation he provided (license and social security card, signed I-9)
    Business failed, we lost everything, car repossessed, house in foreclosure, business foreclosed on. Filed and granted chapter 7. A year before our filing is when things got really bad. Several of our payroll checks bounced, gas was shut off, accounts were frozen and seized by the D.O.R. I could go on and on...
    Had a falling out with this employee over bounced checks, he was fired for stealing. Shortly after he found an immigration atty. who filed a suit for unpaid wages- alleging he worked 80 weekly and was never paid overtime.He was a salaried manager overtime does not apply. He never worked more than 50 hrs. weekly. His claims were so exaggerated and we were so overwhelmed and broke we did not defend ourselves. He was awarded a default judgment for 26k (he was seeking 65k) We were threatened and pursued by a sheriff to make payments. He dragged us back to court- judge said they can't pay they're broke. We filed bankruptcy to save our home and he brought us back to court again - his atty. filed a motion to close the case. Just before our discharge we received notice from a new atty. for an objection to discharge.
    She bombarded us with requests for discovery- wanting basically every financial, business and personal transaction over the last five years. We complied the best we could. In the meantime I found out he falsified his license and social security card (using someone elses #- a dead person
    Have proof of that from the police.) Still, the nightmare continues have to go back to court to "compel discovery and possible sanctions" The original judgment for "overtime"he was awarded on has the falsified hours and dates of employment-(claiming he worked for us for 5 years- we weren't even open 5 years) The judgment they are presenting now has more realistic dates (stating his actual time in our employ) and different hours claimed-my point being how can he fight to keep alive a judgment that is based on grossly exaggerated information- then CHANGE the info. and call it the same judgment? Is it not fraud on the other attorney's behalf to change the body of the judgment to make it appear more valid? I would love to counter sue for fraud and identity theft. Any advice?

  • #2
    I'm not an attorney, but I would imagine a part of your defense could be the "Clean Hands Doctrine." Google it.

    Comment


    • #3
      If you haven't done so already, please start interviewing the appropriate lawyers in your area and find one to retain. You need solid and knowledgeable legal help to fight this effectively in court. It's gone on far longer than it had to because your former manager has used the legal system to his advantage. You need to counter that. If you really can prove he falsified his SSN, etc. then with your attorney's help you may be able to have the original judgment overturned and end this nightmare.
      I am not a lawyer and this is not legal advice nor a statement of the law - only a lawyer can provide those.

      06/01/06 - Filed Ch 13
      06/28/06 - 341 Meeting
      07/18/06 - Confirmation Hearing - not confirmed, 3 objections
      10/05/06 - Hearing to resolve 2 trustee objections
      01/24/07 - Judge dismisses mortgage company objection
      09/27/07 - Confirmed at last!
      06/10/11 - Trustee confirms all payments made
      08/10/11 - DISCHARGED !

      10/02/11 - CASE CLOSED
      Countdown: 60 months paid, 0 months to go

      Comment


      • #4
        Originally posted by brennan1000 View Post
        Long story- but basically was a business owner. Employed a manager (salaried)
        with documentation he provided (license and social security card, signed I-9)
        Business failed, we lost everything, car repossessed, house in foreclosure, business foreclosed on. Filed and granted chapter 7. A year before our filing...
        You say you filed Chapter 7.....Was this a Personal Chapter 7...I'm assuming yes, due to the foreclosure info....and, if so, did you get a "discharge"?

        Did you include the default judgment in your BK?

        If you did include the judgment and were granted a discharge, then the judgment holder is violating the BK stay against you, individually.

        Business Chapter 7's do not get a discharge. However, if the business is closed, they still can not go after you personally and you could possibly just file a copy of your BK and discharge to halt matters.

        Comment

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