Texas Debt Collection Lawyer Vacates Default Judgments
When you fail to file a timely response to a debt collection lawsuit filed by Midland Funding, LVNV Funding, Portfolio Recovery Associates, or Asset Acceptance, or simply just fail to show up to court on the hearing date, the court will sign a default judgment in the favor of the debt collector. A default judgment allows the debt collector get a judgment against you for the maximum amount of money, which can include the original dollar amount of the debt, interest, collection fees, court costs, attorney fees, and post-judgment interest. A credit card judgment can result in your bank account being garnished, your property being taken, your house subject to a lien, or cause you to file for Bankruptcy.
It’s not uncommon for debtors to first discover a default judgment was taken against them when they realize their bank accounts are being garnished. The longer the default judgment remains, the more post-judgment interest accrues. Fortunately, Texas law gives second chances to some consumers negatively impacted by default judgments. The faster you act to challenge a default judgment the more likely you will be successful to set it aside and start the lawsuit all over.
It’s Not Too Late to Set Aside the Default Judgment
The Meyrat Law Firm helps Texas consumers to stop the damage and negative consequences caused by default judgments. The Meyrat Law Firm will explore all legal options to see if the default judgment can be set aside and start the lawsuit all over again:
Motion for New Trial
- Has it been less than 30 days since default judgment was taken against you?
- Were you properly served notice of the lawsuit?
- Did you fail to show up to court because of an honest mistake or accident?
- Courts favor setting aside default judgments when you weren’t fairly given your day of court.
Bill of Review
- Was the default judgment taken against you less than four years ago?
- The issues of a Bill of Review are similar to a motion for new trial, except there’s more evidence to show and explaining to do.
Challenge to Jurisdiction over Parties or Property
- Did the court even have jurisdiction over you or your property?
- Were your assets in a bankruptcy? or in another state?
Post-Judgment Settlement: When It’s Simply Too Late to Set Aside the Default Judgment
Default judgments can be negotiated and settled for a lesser amount even after it’s too late to set them aside within four years of the judgment date. This is called a release of judgment. The Meyrat Law Firm will explore all legal defenses and options to see if the judgment can be released and settled for a lesser amount or if you can file Bankruptcy under Chapter 7 or 13:
Post Judgment Remedies and Defenses
- Are you “judgment proof” or economically insolvent? Collectors are more willing to settle if you’re likely to file for bankruptcy.
- Is the garnishment legal?
- Is your property exempt from the writ of execution?