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Help! Default judgment after BK filed.

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    Help! Default judgment after BK filed.

    I filed Chp 7 the day before a Lawsuit from a creditor, they were notified by my attorney the same day I filed and I was advised to disregard the court date. I checked the clerks website today and see a default judgment was given. My attorney is not available today so I have some questions. First, since the creditors attorney was notified by my attorney, would the fact they showed up be continued collection activity after the stay? Second, do I now need to update my schedule of creditors to include the judgment? Lastly, can a motion to set aside the judgment be filed? Thanks in advance!!
    Retained Attorney: 10/09
    Filed Ch7: 10/09 341 meeting: 12/09
    Discharged and closed: 2/10

    #2
    You filed BK before the judgement was issued, right? Yes, this is a violation of the automatic stay. Notify your attorney so he can go after the creditor for sanctions. He can also have the judgment removed. This may cost you extra initially, but your attorney's fees ought to be paid by the creditors that violated the automatic stay. Definately tell your attorney right away.
    Filed CH 7 9/30/2008
    Discharged Jan 5, 2009! Closed Jan 18, 2009

    I am not an attorney. None of my advice is legal advice in any way..

    Comment


      #3
      Correct!

      My attorneys office filed on 10/15/09 and the creditor was notified the same day by my attorney's office. They showed up and received a default judgement on 10/16/09.
      Retained Attorney: 10/09
      Filed Ch7: 10/09 341 meeting: 12/09
      Discharged and closed: 2/10

      Comment


        #4
        If you know they were notified real time then your attorney should be willing to swear to that fact. Even if you filed a minute before the hearing if they were notified and went ahead with the hearing they are in contempt of a federal court. I assume he called and spoke the attorney suing you.

        Violation of the automatic stay is not looked on kindly by most BK judges.
        3/2/09- Filed: chapter 7 / No asset
        4/1/09- 341 Hearing: 1 creditor showed up Got to love family feuds
        4/2/09- Trustee Report of No Distribution Filed
        6/24/09- Discharged and case closed

        Comment


          #5
          The attorneys office told me Friday that they called for the fax number, faxed the notice of case filing and received a confirmation. I called them as well and offered the case number which they refused. So I would take it that they were notified.
          Retained Attorney: 10/09
          Filed Ch7: 10/09 341 meeting: 12/09
          Discharged and closed: 2/10

          Comment


            #6
            They refused to take your case number after you told them you filed BK?

            Sanction their butts for all our sake.
            3/2/09- Filed: chapter 7 / No asset
            4/1/09- 341 Hearing: 1 creditor showed up Got to love family feuds
            4/2/09- Trustee Report of No Distribution Filed
            6/24/09- Discharged and case closed

            Comment

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