Asked on Jul 24th, 2012 on Bankruptcy - New Jersey
More details to this question:
I have been negotiating orally with an attorney to settle a debt, but now they've filed a Declaration of Default (with an Application for Entry of Default) after I refused to provide bank statements, W-2's, etc. What happens now?
I have never heard of a Declaration of Default in New Jersey. However, if they get a default judgment against you they can attach wages, bank accounts, sell assets and do whatever they can to try to get paid.
I assume there is a lawsuit pending and they made discovery requests with which you have not complied. If you do not take some action with the court to prevent them getting a default judgment and a default judgment is entered after 21 days go by (the appeal period) they can then take steps to enforce the judgment. I think it would be wise for you to get an attorney involved to represent you at this point.
You need to contact an attorney as soon as possible. If you are in default, you may not be allowed to take any action other than motion to set aside a default.
Obviously you have been sued.. A default is the first step to getting a default judgment.. hire an attorney to overturn the default if you have any defenses to the debt.
If they've entered a default against you, then you've failed to answer the summons. Now they will apply for default judgment. Default judgment is a judgment. Next they can garnish. I recommend you talk to an attorney or your local legal aid / self-help center.
If you don't answer or otherwise officially file an appearance in the case, you will be defaulted and the other side will soon thereafter file a judgment against you.
If a default is entered against you, then the court has determined that you do not object or deny any of the allegations set forth in the complaint and thereby admit same. Thereafter, the plaintiff can file for entry of a default judgment against you requesting the full relief requested in the complaint.
In New Jersey, it means that you were served with a Summons and Complaint and failed to file an Answer. They are able to obtain a Default Judgment which means since you did not answer the Complaint, which they know was served, that the Court can enter a Judgment based upon the pleadings. Once the Judgment is entered they proceed to execute upon it.
Consumers can use this platform to pose legal questions to real lawyers and receive free insights.
Participating legal professionals get the opportunity to speak directly with people who may need their services, as well as enhance their standing in the Lawyers.com community.