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default judgment vacated, now what?


jmo
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Hi board,

I live in New York. a credit agency, through lawyers, filed a complaint against me (for a Citi cc debt of 16k) and failed to serve me notice, thus obtaining a default judgment. I filed an order to show cause to vacate the judgment and allow me to answer. the attorney showed up and we stipulated to vacate the judgment and that I would file an answer. I hope this was the right course of action, but I really had no choice, since they were about to garnish.

for now, the judgment is vacated, but I have to file an answer and then get a court date. best case scenario would be if I offered to settle with them and they accepted, but it seems like they have little or no motivation to do this, since I do owe the money and have not been paying on the debt for 3 years (I was unemployed and in denial).

any advice in arriving at settlements at this stage? I can afford a lump sum of 4-5k, but that's all. btw - my wages are already being garnished 25%, so maybe this is a bargaining chip for me? maybe I'm stuck with it. I could always file bk, but it would be a shame for 16k debt.

pls help.

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The court will not allow double dipping on garnishments. One at a time. This could put you in a decent position to talk settlement. But since they are already suing, why not go to court and make them prove their case? Even if they do win you can still talk settlement, especially if they see that you have no assets that can be easily seized.

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