Case Background
In 2016, a Client retained our firm for assistance with resolving a judgment for an old credit card debt. The Plaintiff, U.S. Equities Corp, was represented by Attorney Linda Strumpf. The judgment was originally entered in 2004 for approximately $22,000, but with interest and poundage, the balance ballooned to $47,000.
Our client was unaware of any lawsuit against her. Her first indication that there was an issue was when her employer received a notice of garnishment from New York City Marshal Gregg E. Bienstock ordering them to withhold money from her paycheck.
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Contesting the Validity of the Judgment
Upon review of the Affidavit of Service, our attorney identified that U.S. Equities attempted to serve the lawsuit at an address which the borrower had not resided for several years. That helped us understand why our client did not receive the lawsuit papers or any notice about the judgment being entered. Furthermore, our attorney’s research indicated that the process server’s license was revoked for a period of time, which raised concerns regarding the veracity of his Affidavit of Service.
We brought an Order to Show Cause to Vacate Judgment (OSC), which paused the garnishment while the Order was being adjucated by the court. Linda Strumpf’s office opposed the Order, and upon the initial appearance, the Court ordered a Traverse Hearing. The purpose of this hearing is to determine whether process of service of the Summons & Complaint was sufficient, and consequently, whether the court will vacate the judgment.
Resolving the Lawsuit and Judgment
Ultimately, we were able to negotiate a settlement of about $8,000, inclusive of principal, interest, and marshal’s fees. If a settlement was not reached, it would be in the hands of the court to decide the fate of the judgment, putting our client at risk of being held responsible to repay the full judgment balance (plus accruing interest). Under the circumstances, our client felt that it was in her best interest to settle and put the matter to rest, especially given the magnitude of the reduction.
Debt Lawsuit Defense in New York & New Jersey
By taking advantage of this settlement, our client saved nearly $39,000, which is a reduction of over 80% from the judgment balance. The debt is resolved, and the borrower is no longer concerned about having her wages garnished. Furthermore, Linda Strumpf’s office agreed to vacate the judgment as part of the deal.
Are you overwhelmed by a lawsuit or judgment for credit card debt? The attorneys at the Law Office of Simon goldenberg PLLC are proficient in the strategies necessary to resolve judgments and fight debt collection lawsuits in NY & NJ.
To find out what our legal team can do for you, schedule your free case evaluation by calling our office today at (888) 301-0584.
Prior results do not guarantee similar performance. Results vary. This illustration is intended to highlight an achievement of the law firm, and should not be relied on to be typical. While we strive to maintain accuracy and provide relevant case histories, in order to protect the confidentiality of our client(s), all numbers are approximations and are offered for illustrative purposes only. We make no claim or allegation of wrongdoing by the collectors, attorneys, or process servers discussed on this page. Call us for an evaluation of your situation.