Tag Archives: creditor

Options to Consider when a Judgment is Entered Against You

Many people who fall behind on their bills feel overwhelmed when creditors start filing collection lawsuits against them. In fact, it is not uncommon for people to simply ignore the lawsuits and hope they will simply go away. This tactic never works! As soon as you are served with a petition or complaint against you, confer with an attorney so you understand all of your options.

Options when a judgment is entered against you - Brevard County Bankruptcy

Once a creditor has obtained a court judgment against you, it is important to understand there are still different ways to deal with it. While no two cases are identical and you should always seek legal advice regarding your specific situation, below are a few options to consider:

Personal bankruptcy. If you are feeling overwhelmed by your debt, filing a Chapter 7 or Chapter 13 bankruptcy may allow you to discharge or cancel a collection entered against you. Again, you should consult with a debt relief lawyer to confirm that the type of judgment entered against you will be discharged, but this could save you thousands of dollars!

Wait and see. If you are reluctant to file a personal bankruptcy, you may consider waiting and seeing what actions the creditor pursues after obtaining the judgment against you. Of course, there is substantial risk involved depending upon your unique situation. In fact, this course of action (or inaction) is only suggested if you are considered to be “judgment proof.” In other words, you do not own any non-exempt property or other means for the creditor to be able to collect the judgment from you. Additionally, if the creditor fails to take any action to enforce or renew its judgment against you, it will eventually expire.

Negotiate and settle. Don’t make the mistake of believing your settlement options are over once a judgment has been entered against you. Many creditors are still willing to settle your debt post-judgment in order to avoid incurring the expenses associated with trying to collect from you. Thus, you may be able to pay off the judgment for less than the full amount. In some cases, you may be allowed to set-up a payment plan to satisfy the judgment. Just remember, you must obtain a court-stamped satisfaction of judgment in order for the unpaid judgment notation to be removed from your record!

Contact Faro & Crowder, PA today for a free initial consultation

Call us today to schedule your initial consultation. Our office is located in Melbourne on Sarno Road, but we proudly serve individuals and businesses across the State of Florida.

Speak with an experienced Foreclosure Defense and Bankruptcy Attorney at Faro & Crowder, PA 321-784-8158

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We provide services throughout Central Florida including: Melbourne, Titusville, Palm Bay, Merritt Island, Cocoa, Cocoa Beach, Satellite Beach, West Melbourne, Cape Canaveral, Viera and Eau Gallie.

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Faro & Crowder, PA
Phone: 321-784-8158
1801 N. Sarno Road, Suite 01
Melbourne, FL 32935

The information on this blog or any blog is not intended as, and should not be taken as, legal advice.

Is there anything I can do About a Default Judgment?

If you have been sued by a creditor and you did not appear or file a timely answer with the court, it is likely a default judgment has been entered against you. Many people just “give up” when this happens and believe there is nothing that can be done about it. However, many times there are good excuses for why you failed to appear or file an answer. If this is true for you, we can help you seek to have the default judgment set aside.

default jdmt pic

There are two primary types of “good cause” for failing to respond to a lawsuit, which are (i) there was a defect in the process that led to the default judgment, or (ii) you have a “reasonable excuse.” Additionally, you must be able to demonstrate that you have valid defenses to the plaintiff’s claims against you.

Substantial defect

If there was a procedural defect or an irregularity in the proceedings which caused the default, it can constitute sufficient good cause for failing to appear. For example, if you were not properly served with the summons and petition or complaint. Common examples of improper service include leaving the court documents with a minor at your residence who fails to give them to you, serving somebody with your same name and you never receive the papers, or mailing the papers by certified mail to an improper address.

Reasonable excuse

There are a variety of reasonable excuses that may have prevented you from participating in the lawsuit against you. For example, if you were in a serious car accident on the way to attend your hearing, the judge will find that to be a reasonable excuse for setting aside the default judgment against you.


You must also be able to inform the court that you have valid defenses against the plaintiff’s allegations in order for the default judgment to be set aside. This means that you must be able to explain why you should be granted another day in court. Let one of our attorneys help you determine if you have valid defenses to the collection case.

Call us today to schedule your initial consultation. Our office is located in Melbourne, but we proudly serve individuals and businesses across the State of Florida.

Can a Debt Collector Call My Cell Phone?

If you are past due on your bills, you are probably being harassed by debt collectors. You are probably aware that the law prohibits collectors from using certain harassing and abusive tactics to collect debts. One of the most common ways that collectors violate the law occurs when they contact a debtor on his or her cell phone without permission to do so.

Debt collector calling cell phone | Melbourne, Florida

Most debt collectors use an auto-dialing service to contact borrowers. You may be familiar with this type of call – there is typically a pause after you answer the phone while the computer transfers the call to a human to talk to you. In some cases, there is a pre-recorded message. If you have not provided the collector with permission to contact you on your cell phone, this type of call may be a violation of the Telephone Consumer Protection Act (TCPA).

How do you know if a collector has violated the TCPA? We must investigate whether or not you provided the collector with authority to contact you on your cell phone. Many times permission is given when you fill out a loan application form and provide your cell phone number as a means for contacting you. However, if you did not give the collector permission to contact you on your cell phone, the use of an auto-dialer to call your cell phone may be a violation of the TCPA.

It is important to understand that if you revoke your permission for the collector to contact your cell phone, you can do so by sending a written revocation letter. It is important to send the notice that you are revoking your permission by certified mail, return receipt requested, to the collector. This is important for proving that the collector received the revocation letter. If you cannot remember whether or not you gave the collector permission to call your cell phone, you should send a revocation letter and demand that they stop auto dialing your cell phone. In the majority of the cases, your revocation letter will make the calls to your cell phone stop. However, if the collector ignores your request and continues to auto-dial your cell phone, you could be entitled to recover $500 to $1500 per call.

Contact Faro & Crowder, PA – A Brevard County Law Firm

If you believe a collector is violating the TCPA, the legal team at Faro & Crowder is ready to help. Our office is located in Melbourne, but we proudly serve businesses across the State of Florida.

Faro & Crowder, PA
Phone: 321-784-8158
1801 N. Sarno Road, Suite 01
Melbourne, FL 32935
Email: info@farolaw.com

Understanding Preferential Transfers in Bankruptcy

If your company is considering filing bankruptcy and you deal with several vendors, it is important to understand what is meant by the term “preferential transfer.”

Preferential Transfers in Bankruptcy | Melbourne, FL

A preferential transfer is a payment (in money, goods or other) that is made to a creditor within the 90 days preceding the filing of the bankruptcy petition that results in that creditor receiving more than it otherwise should have. The result is that the creditor was “preferred” over other similarly-situated creditors.

What happens if a preference occurs?

If a preferential payment is made, the trustee has the ability to recover the money or goods in order to administer them as part of your bankruptcy estate for the benefit of all the creditors. This can be accomplished by the trustee asking the creditor to return the payment or, if necessary, a lawsuit called a “preference action” can be filed within the bankruptcy case.

What about payments to secured creditors?

A question can arise for secured creditors because foreclosing on collateral pledged to secure a loan does not provide the creditor more than it would have received if the collateral had been liquidated in the bankruptcy case. Naturally, there are some exceptions to this rule. If a secured creditor’s claim is greater than the value of the collateral, the amount of the secured claim is typically limited to the value of the collateral as of the petition date. Any remaining deficiency balance becomes an unsecured claim. Thus, some bankruptcy judges have ruled that any payment made to a secured creditor within the 90-day period is assumed to have been made for the unsecured part of the lender’s claim and therefore potentially subject to a preference action.

Secured creditor defenses

If you are a secured creditor and you are facing a preference action, it is important to understand you may have valid defenses to the preference action. The primary defense used by secured creditors is the “ordinary course of business” defense, which means the payment was made during the ordinary course of business between the debtor and creditor so it is not extra-ordinary or preferential.

To learn more about preferential transfers, contact us for a free consultation.

Our office is conveniently located on Sarno Road in Melbourne.  We offer free initial consultations for bankruptcy and foreclosure defense.

Speak with an experienced Bankruptcy Attorney at Faro & Crowder, PA 321-784-8158

We offer a free initial consult for bankruptcy, debt relief, credit card debt and foreclosure defense.  Contact our office to schedule your consultation and discuss your debt relief options.

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Phone: 321-784-8158
1801 N. Sarno Road, Suite 01
Melbourne, FL 32935
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