Default judgement post 180 days options

[Bhender]

Jurisdiction

Texas

I was sued while I had an S Corp for a project we completed in 2010. In 2012 I received a lawsuit for 40k on an original contract amount of $17,200. No complaints were made prior to the suit. We spent nearly twice as many hours on the project than was contracted. I had a lawyer working on the case responding to discovery. By the way, I was named personally as well as the business.

Time went by and I was out of work for over six months and I stopped responding and couldn't pay my layer. Later in January 2016 there was a hearing where a default judgement was made for $222,000!!! I realize it's my fault for sticking my head in the sand, but really? $180,000 more??

It's been over 6 months now and a couple lawyers said I have no options to appeal or vacate. There has gott to be some options here! All the lawyers have said the whole cases is bs but I only have a bankruptcy option and they can still fight that. I about to hire a lawyer to try to settled for something close to the original contract amount. But I'm not sure they will. I'm not satisfied with no appeal/vacate options. Anyone have any advice? I realize I screwed up by not responding to the hearing request, but there has to be something as this is ludicrous!

 

[army judge]

Bankruptcy, if you qualify, chapter seven bankruptcy will address the judgment.

ASAP, talk to three or four local bankruptcy lawyers.

Bankruptcy is a far better option than settling.

A BK lawyer can explain why.

 

[adjusterjack]

It's been over 6 months now and a couple lawyers said I have no options to appeal or vacate.

That's true. You are going to have to resign yourself to that fact as it is your reality now.

All the lawyers have said the whole cases is bs

It was BS up to the moment that judgment was entered and then never challenged. Now it's not BS anymore. It's a done deal that you have to deal with. Unless you want to spend $20,000 for a lawyer to look for a loophole.

I only have a bankruptcy option

That's right.

and they can still fight that

Sure, they can object to the discharge and file an action to address it. So what. Bankruptcy costs less than a couple of thousand, so take your chances and see how it goes.

I about to hire a lawyer to try to settled for something close to the original contract amount. But I'm not sure they will.

Probably not. But if you have $17,200 handy and are willing to pay it I suggest that bankruptcy will be a fraction of that money even if you do have to address the creditor's objection to the discharge.