Frankie12

Should I just allow default judgement?

Recommended Posts

Second post in 2 days sorry... 

I do not have the money for an atty, and honestly do not have the time or energy to fight the suit against me for a loan debt. I have read about the tactic to request arbitration but just cant deal with all the specifics. I am in an accelerated nursing program and have 2 kids blah blah blah. So should I even waste my time submitting an answer and showing up? If I affirm all the counts and don't select any defenses, what is the point? Or should I select “I don't know” and maybe cross my fingers for a sympathetic judge?? I have no assets so unlikely they can collect on a judgement anyways. 

Share this post


Link to post
Share on other sites
21 minutes ago, Frankie12 said:

I am in an accelerated nursing program and have 2 kids blah blah blah.

Do you plan on finding a paid nursing job in the next 10 years? 

Share this post


Link to post
Share on other sites

Yes and with that income I can begin to pay off the debt. I understand these wages would be garnished. Of course this is not something I want, but possibly something I can’t avoid. 

Share this post


Link to post
Share on other sites

@Frankie12 Is this the debt from your other thread? I realize this is very difficult for you. It's overwhelming, I'm sure. A judgment on your record may impact your job prospects, so it's to be avoided if possible. If you would post your Complaint on your other thread and use the examples of other Michigan members to draft your Answer, Affidavit and your Motion to Compel Arb (MTC), you have a chance of ending up in a much better situation than if you allow a default judgment. We've helped many people in similar situations and their threads show you a basic step-by-step way to get through this. You don't have to reinvent the wheel, just modify (with help) the templates to reflect your specific case details. You have some time before your Answer with Affidavit is due. Is Sept. 6 your due date? The MTC doesn't have to be turned in at the same time as the Answer, so you have a little more time with that. Many Michigan posters have used the Michigan-modified template to a successful outcome--no guarantees, of course. If you don't at least try, you can't end up in a better place. 

  • Like 1

Share this post


Link to post
Share on other sites
23 minutes ago, Brotherskeeper said:

@Frankie12 Is this the debt from your other thread? I realize this is very difficult for you. It's overwhelming, I'm sure. A judgment on your record may impact your job prospects, so it's to be avoided if possible. If you would post your Complaint on your other thread and use the examples of other Michigan members to draft your Answer, Affidavit and your Motion to Compel Arb (MTC), you have a chance of ending up in a much better situation than if you allow a default judgment. We've helped many people in similar situations and their threads show you a basic step-by-step way to get through this. You don't have to reinvent the wheel, just modify (with help) the templates to reflect your specific case details. You have some time before your Answer with Affidavit is due. Is Sept. 6 your due date? The MTC doesn't have to be turned in at the same time as the Answer, so you have a little more time with that. Many Michigan posters have used the Michigan-modified template to a successful outcome--no guarantees, of course. If you don't at least try, you can't end up in a better place. 

This is excellent advice. 

Some places make you go through extreme background checks before hiring.  I have been in the situation in which I had to prove that I had no outstanding judgments against me before I could get a job.  I even talked personally with Bob Hornick, one of the partners of the RSIEH law firm, and have him send confirmation that I didn’t owe his client any money.  

The Catch: You can’t get a job until you pay the judgment, and you can’t pay the judgment without a job.  

Being in an accelerated program leaves you with almost zero free time.  Following the steps will take a few hours here and there.  And you can very likely win, or at worst delay a judgment until after you have a job.  

You have to find a way to spend the handful of hours it will take to possibly save your career.  

  • Like 1

Share this post


Link to post
Share on other sites

Thanks so much to both of you. Yes I am extremely overwhelmed - this is likely not the only lawsuit that will be happening either and BK is not an option at this time. I will post the complaint in the other thread. 

Share this post


Link to post
Share on other sites
3 minutes ago, Frankie12 said:

Thanks so much to both of you. Yes I am extremely overwhelmed - this is likely not the only lawsuit that will be happening either and BK is not an option at this time. I will post the complaint in the other thread. 

One step at a time. Let's get started. 

Share this post


Link to post
Share on other sites

I should add one more thing:

Since the OP has multiple accounts in default, it would be a great time saver in the long run to be a  bit more proactive about these other accounts.  

Meaning, it is a very good idea not to let them get into court at all.  Having a judgment against you is very bad.  Having a court record at all can cause a lesser degree of trouble.  

It takes at most a few hours a week, often less, to keep an eye on the other accounts. Remember, the goal is to keep the cases from ever getting to court, as long as possible.  

1.  When the accounts get to a CA or JDB, a DV letter buys a little time.  

2. A triage needs to be done for these accounts. The three categories are:

a. Accounts for which the creditors seem to be ignoring the account.  This could be because they won’t validate.  I walked away from over $80,000 in debts because they would never validate.  Much rarer these days, but it still happens. 

b. Accounts for which there is an arbitration clause.  The goal is to get these into arbitration before a suit is filed.  

c. Accounts which are being perused with no arbitration clause.  The goal is to set up a payment plan or settlement before this gets into court.  

Share this post


Link to post
Share on other sites
32 minutes ago, BackFromTheDebt said:

I should add one more thing:

Since the OP has multiple accounts in default, it would be a great time saver in the long run to be a  bit more proactive about these other accounts.  

Meaning, it is a very good idea not to let them get into court at all.  Having a judgment against you is very bad.  Having a court record at all can cause a lesser degree of trouble.  

It takes at most a few hours a week, often less, to keep an eye on the other accounts. Remember, the goal is to keep the cases from ever getting to court, as long as possible.  

1.  When the accounts get to a CA or JDB, a DV letter buys a little time.  

2. A triage needs to be done for these accounts. The three categories are:

a. Accounts for which the creditors seem to be ignoring the account.  This could be because they won’t validate.  I walked away from over $80,000 in debts because they would never validate.  Much rarer these days, but it still happens. 

b. Accounts for which there is an arbitration clause.  The goal is to get these into arbitration before a suit is filed.  

c. Accounts which are being perused with no arbitration clause.  The goal is to set up a payment plan or settlement before this gets into court.  

What is the procedure to request arbitration before a suit is filed? Have you had success with this?

Share this post


Link to post
Share on other sites
1 hour ago, TAGurIT said:

What is the procedure to request arbitration before a suit is filed? Have you had success with this?

1.  You don’t request arbitration, you demand it.  

The way to do this is depends on how badly you want the case out of the courts.  

In one situation, the case was for my wife, and I desperately wanted it out of the courts, because I could act as her adviser in arbitration but not in the court.  In that case I filed as soon as I first heard from the plaintiff’s attorney.  

2.  Does demanding arbitration keep the cases out of court?

In another case, for which the SOL was almost over in my state but had passed in Delaware, I demanded arbitration with the attorney and they said they would sue unless I initiated arbitration within 30 days.  I filed in JAMS. 

There was another case where I filed in JAMS but the law firm was confused and filed in court anyway.  That went well for me. 

There were two other cases for which I demanded arbitration, but they sued anyway, and I took the case to arbitration after it was in court.  

I never lost in arbitration, even against the companies that almost always win, but my cases were special.  

 

In a nutshell, the only way to be mostly sure the case will not wind up in court is to keep in close contact, and make sure they know you demand arbitration, and make sure that as soon as it gets to a lawyer you immediately file in arbitration.  

This is especially true if the case has a small claims exemption.  If you have already filed in arbitration before they file in small claims, it isn’t in small claims.  I did this with a credit card with a small claims exemption.  This was the card where they got confused and filed anyway, which was a big mistake on their part. 

Share this post


Link to post
Share on other sites
20 hours ago, BackFromTheDebt said:

1.  You don’t request arbitration, you demand it.  

The way to do this is depends on how badly you want the case out of the courts.  

In one situation, the case was for my wife, and I desperately wanted it out of the courts, because I could act as her adviser in arbitration but not in the court.  In that case I filed as soon as I first heard from the plaintiff’s attorney.  

2.  Does demanding arbitration keep the cases out of court?

In another case, for which the SOL was almost over in my state but had passed in Delaware, I demanded arbitration with the attorney and they said they would sue unless I initiated arbitration within 30 days.  I filed in JAMS. 

There was another case where I filed in JAMS but the law firm was confused and filed in court anyway.  That went well for me. 

There were two other cases for which I demanded arbitration, but they sued anyway, and I took the case to arbitration after it was in court.  

I never lost in arbitration, even against the companies that almost always win, but my cases were special.  

 

In a nutshell, the only way to be mostly sure the case will not wind up in court is to keep in close contact, and make sure they know you demand arbitration, and make sure that as soon as it gets to a lawyer you immediately file in arbitration.  

This is especially true if the case has a small claims exemption.  If you have already filed in arbitration before they file in small claims, it isn’t in small claims.  I did this with a credit card with a small claims exemption.  This was the card where they got confused and filed anyway, which was a big mistake on their part. 

Thanks for the info, is there an example of the demand for arbitration to send directly to JDB out of court? I have only seen the MTC that you have to file with the court.

Share this post


Link to post
Share on other sites

This is very tricky. 

Just say something like “I elect arbitration for all matters with this account”.  

Thing is, they may just ignore that.  At some point they will send it to an attorney.  

If you tell an attorney you elect arbitration, one of three things will happen, and they have all happened in my cases   

1.  They will ignore you and file suit anyway.  

2. They won’t want to bother with you and will send the account back to the OC or JDB, who will send it to  another attorney   

3.  They will give you a deadline of x days for you to file in arbitration, otherwise they will file in court.  

MOST of the time you can keep a case out of court by doing the following:

A.  After you hear from an attorney, send in your DV letter.  That will buy you enough time to write up your arbitration file.  Mention in the letter that you elect arbitration   

B.  At some point they will probably reply.  Not always.  See #2 above.  For one law firm the case sat in the bottom of a drawer for a year or so before they answered.  

C. After you hear back from them, either you have a deadline to file in arbitration or you don’t. If you have a deadline, file before the deadline and send a copy to the law firm.  If they didn’t mention arbitration at all, that means they will file suit very soon unless they hear from you about settlement offers.  In that case, file in arbitration immediately. Remember in step A you prepared for this.  Send a copy to the attorney. 

NOTE:  this does NOT work 100% of the time.  Sometimes the case is sent to an attorney, and the attorney will Immediately file in court with no warning.  They can legally do that.  

  • Like 1

Share this post


Link to post
Share on other sites

Join the conversation

You can post now and register later. If you have an account, sign in now to post with your account.

Guest
Reply to this topic...

×   Pasted as rich text.   Paste as plain text instead

  Only 75 emoji are allowed.

×   Your link has been automatically embedded.   Display as a link instead

×   Your previous content has been restored.   Clear editor

×   You cannot paste images directly. Upload or insert images from URL.