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Latest News Re: Creditor Lawsuits and Bankruptcy

  • By: Christopher Benson
  • Published: September 1, 2010

Bankruptcy. Chapter 7. Chapter 13.

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In a previous update, we described different ways that a lawsuit can be started against a person: 1. Classic Method: Plaintiff files lawsuit, gets a case number and then serves on Defendant; or 2. Current Method: Plaintiff serves Defendant without filing with the Court in order to start the 20 Day Default time period against the Defendant.

The latest development is that Plaintiff Creditors are now setting up a Motion for Default and in the Alternative a Motion for Summary Judgment at the same time.

What this means is that even if the Defendant files their Notice of Appearance and Answer with the Court within 20 days of service (which prevents a Default Judgment from being entered against the Defendant) that the alternative motion for Summary Judgment will still go forward and be heard on the scheduled date.

If the Defendant does not comply with Civil Rule 56 (and the local civil rules if applicable), the Defendant will probably lose the motion on the scheduled date and a Judgment will be entered against the Defendant.

If you are served with a lawsuit, you need to contact an attorney right away and provide the attorney with all documents received. There may be a Motion for Default and in the alternative, a Motion for Summary Judgment scheduled against you.

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