Old default judgment, do I need a bankruptcy attorney? 25 Answers as of August 26, 2011

You have two options. Pay the debt or file bankruptcy. If you file bankruptcy, then buying a home may not be possible for another two years. Thus, you have to consider the ramifications of deciding which course of action to take.

You will need to make a motion to vacate the judgment. You should hire an attorney.

If you plan to pay for it, you can do it yourself, you don't need a lawyer. If you want to fight it, yes bankruptcy can remove all of it. If you pay your bills on time after bankruptcy, the net effect will be more or less +90 of your current score according to the credit bureaus. If you plan to file for bankruptcy, I do recommend you hire a lawyer because 90% of pro se cases would end up being dismissed or worse.

In New Hampshire creditors have 20 years to collect on a judgment. You should speak with an attorney to discuss your options, you will need to resolve the debt. Filing a Bankruptcy will hold up purchasing property.

They often get default judgements without actual service. Unfortunately it too difficult and expensive to get them set aside. Your options are (1) pay them, (2) try to settle with them, or (3) file a bankruptcy. You may need to hire a lawyer to resolve it.

A default judgment is a judgment. A judgment can be paid in full to satisfy it. Bankruptcy is an alternative, but you should seek the advice of an attorney as to whether bankruptcy should be filed.

Going back in time on the judgment to have it set aside for lack of service may be difficult. No doubt in the court file is a proof of service that satisfied the court. You can certainly file bankruptcy on it but if the debt is not to large you may try to settle it for a lump sum cash offer. You could probably attempt this yourself.

This is a tough one. I will give you my thoughts. First, service in the lawsuit. Unfortunately it is all too common for debt collectors to do sloppy service. Service must be in person. After service the collection attorney then files a Certificate of Service with the court. If you were never served you don't know you are being sued and the attorney gets a default judgment. Its possible you could challenge service after the fact; I've never done it and I suspect it would be expensive. It would depend on how big the judgment is whether it would be worthwhile. Can you discharge the judgment in bankruptcy? Yes, but it will have a negative impact on your credit score. Might make it impossible to buy a house until you improve your credit score. It might make sense to settle the debt. Creditors are usually willing to settle for 50% or less, but you have to have cash.

I would have a lawyer negotiate this. Once the defective default is set aside the credit card debt will be out of the statute of limitations. Then have reference removed from credit report.

You could file a motion to vacate the judgment based upon lack of service but the question is whether you owe the debt anyway. You could discharge the debt and other debt in a chapter 7 if you qualify. I am happy to discuss these issues with you.