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What To Do With a Default Judgment

What To Do With a Default Judgment

When you find yourself unable to pay your debts in Maryland, creditors may take legal action against you to recover what you owe. This can lead to lawsuits and, if successful, result in a default judgment against you. At The Law Offices of Nicholas J Del Pizzo, we understand the challenges you may face when dealing with default judgments and offer guidance to help you navigate these situations effectively.

What is Default Judgment:

A default judgment is a court ruling issued when a defendant fails to respond to a lawsuit filed by a creditor. In Maryland, as in many other states, creditors can pursue legal action to collect outstanding debts. If you fail to respond to the lawsuit or appear in court, the court may automatically rule in favor of the creditor, resulting in a default judgment. This judgment typically includes the full amount owed plus additional costs.

What Happens After a Default Judgement? 

After a default judgment is issued in Maryland, creditors have various options to enforce it. They may attempt to seize non-exempt property owned by the debtor. This can include bank levies, vehicle sales, or, in some cases, placing a lien on real property. While sheriff sales of real property are not common in Maryland, creditors may wait for the debtor to sell or refinance property to collect on the judgment lien. Additionally, default judgments can negatively impact credit scores, further exacerbating financial challenges.

Options for Fighting a Default Judgment:

If you’ve received a default judgment in Maryland, there are steps you can take to challenge the court’s decision:

Motion to Vacate or Set Aside:

You can file a motion to vacate the judgment, arguing that you weren’t properly served or had a legitimate reason for not appearing in court. This may convince the court to set aside the default judgment.

Negotiate a Settlement:

Consider negotiating a settlement with the creditor. They may be open to accepting a reduced sum or establishing a payment plan to satisfy the debt, potentially preventing further collection actions.

Bankruptcy:

Filing for bankruptcy in Maryland can offer relief from collection activities, including those resulting from a default judgment. Depending on the type of bankruptcy filed, certain debts may be discharged, providing a fresh start for individuals overwhelmed by financial obligations.

Ready to Speak with a Bankruptcy Attorney in Baltimore, MD? Contact The Law Offices of Nicholas J Del Pizzo! 

If you’re facing a default judgment or struggling with overwhelming debt in Maryland, don’t hesitate to seek assistance from an experienced bankruptcy lawyer. Contact The Law Offices of Nicholas J Del Pizzo at 410-288-5788 or visit our website at https://www.nickdelpizzo.com/ for expert guidance tailored to your specific situation. At The Law Offices of Nicholas J. Del Pizzo, III P.A. in Baltimore, Maryland, our dedicated attorney, Nick Del Pizzo, is here to assist you with your legal needs, even outside regular business hours. We offer personalized attention and strive to find the best resolution for your situation, whether it involves bankruptcy, foreclosure, personal injury, or medical malpractice. Contact us seven days a week, and let us help you navigate your path to financial recovery. Your case becomes our cause, and we’re committed to achieving the best possible outcome for you.

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