Just received a summons on a debt that we were already sued over. The other company won and has a judgement against us. Now we are being sued again for the same debt. We haven't paid the judgement yet but was in the process of planning to pay it within the next couple of months. Surely they can't do this right? What recourse do I have? On the last page it states cost, disbursements and reasonable attorney fees may be awarded to the opposing party (us) if the court should find they acted in bad faith, asserted a claim or defense that is frivolous and costly to the other party or commited a fraud upon the court. So wouldn't this be frivolous?
Was the judgment that is already there, a DEFAULT JUDGMENT? Chances are the CA could have sold the account right before trial, got the default, and the check from the new CA. Or, did the CA suing you buy the judgment, and are suing you to enforce the judgment? There is a difference, the suit wouldn't be for the underlying debt, but the judgment itself. The question would be, if the suit is for the underlying debt, which CA is showing bad-faith, the first one or the second one.
Have you "defaulted" on the original judgement? If you have not paid the original judgement (based upon its terms), you could be taken to court again for default (not paying the original judgement). If you can afford it, have an attorney review this to define and detail what you are being sued for.
The first judgement was a default judgement. We didn't go to court. Stupid, I know, we learned. We thought we would lose not matter what. According to the summons it is for the loan note that was defaulted on, it doesn't say anything about a prior judgement. Also this time its in my name only, the loan was in both of our names (husband/wife). I don't work but our checking account is jointly owned so they could tap that. Its not a collection company, its a lawyer for the bank. Same way when they first sued us, but different lawyer I believe I can't find the other paperwork right now. The summons is worded xx bank vs jane doe. I am wondering if I call them and try to settle for a lesser amount and write them a check will it take care of the first judgement? I don't want to try and settle this and then they try and collect on the first judgement later.
To clarify there was never a payment arrangement set up for the first judgement or anything. We didn't go and they received a default judgement which shows up on our credit report. They did attempt to zap our bank account however at that time we were receiving food/medical assistance therefore making us exempt and the bank released the hold on our checking account. We haven't received any contact from them since.
Here's your Answer: Defendant denies each and every allegation stated in the Complaint and demands strict proof thereof. As and for an Affirmative Defense, Defendant claims the defense of res judicata, in that this matter has already been decided by a Court of Competent Jurisdiction. As and for a Counterclaim, Defendant states that since Plaintiff has previously litigated this matter, Plaintiff is using this Court to further harass and annoy Defendant, causing mental anguish, embarrassment, the expense of defending this frivolous action and disruption of Marital Harmony, for such damages Defendant demands of Plaintiff the sum of Ten Thousand Dollars, plus attorneys fees, plus such punitive damages as the Court may deem proper, plus interest at the highest statutory rate.
Thanks! I wouldn't be able to sue them for 10,000 as the limit I think is only 7500. My thoughts were filing a counter claim for like 2500. Long story short this company has been really stupid from the start of this. We reaffirmed the debt in BK. Was paying them on time every month, one month I was a few days late in sending the payment (got sick and honestly forgot). They mailed the payment back saying we breached the contract, contract was now void and total amount due in full. Then shortly after that we got the court notice. Crazy I mean at least then they were getting paid, we were trying to hold up our end of the bargain. Needless to say no way did we have the full amount they asked for we were scraping just to pay the monthly payment. I really don't understand this process. Last time we just got papers in the mail and had to be in court on xx date. This time it says I need to respond to the other party within 20 days or a default judgement may be declared. No court date or anything. It does have a case number though. So I send a certified letter requesting proof of debt. Then once I receive that I file a counter claim right?
BTW: A little known secret, unless their attorney is within an hour or so of the courthouse, usually (unless its a really large amount, or their client is more determined then most) won't appear. Keep in mind, multiply travel time by two, and the time for the hearing, and you could be cutting into about 3-5 or more hours out of the lawyers day, at a large hourly fee. Yes, if they get judgment and asked for legal fees, they'ld recoup that, but it's still a large up-front expense, if their ducks aren't properly lined up in a row.
