Judgment on Default or Judgment on the Merits? Why It Matters in NYS Debt Collections.

Gavel and scales to represent Judgment on Default When calling a New York debt collection lawyer for help pursuing or defending a judgment obtained in New York or elsewhere, one of the top questions asked is whether the judgment was obtained on the merits or on default. The rationale behind the question is that when it comes to New York City, the distinction truly makes a difference.

Unlike New Jersey, which accepts judgments obtained from other states regardless of whether they were obtained on the merits or on default, New York does not. As opposed to other states and jurisdictions, New York draws a distinction between judgments obtained on the merits and those obtained on default when it comes to vacating judgments and recognizing out-of-state judgments.

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Are You Negotiating With the Right Person?

Red question mark to represent negotiate settlementsWhen negotiating a settlement with your adversary, be sure the representative you are dealing with is authorized to negotiate on behalf of their client. While this may seem like a somewhat obvious point, sometimes it may be unclear who is authorized to negotiate settlements on behalf of your adversary.

For example, say you or your client are served with a lawsuit from an unpaid debt and you reach out to the attorney that filed suit against you or your client. Nobody answers the phone so you leave a message. You receive a callback but the person calling you is not from the firm that filed the suit, but rather is from a collection agency that claims they have authority to negotiate on behalf of the creditor. What should you do?

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Service Has to Be Solid When It Comes to Debt Collection

photo of New York City to represent debt collection serviceThe media has brought attention to debt collection firms that have failed to deliver proper notice of debt collection actions to debtors. The result of these investigations highlights the judgments entered without cause and disciplinary actions against the firms for failing to deliver solid service of the court documents. Not much is mentioned about the cost to the creditors who entrusted their claims and potential recovery to the firm. We want you to know what it costs you if the service of your debt collection papers is not solid.

Throughout the life of a debt collection claim, you may be required to give notice. This can include notice of default, notice of non-payment, notice of pendency, notice under mechanics lien, notice that a debt collection claim has been filed or, that a judgment has been entered.

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Joint and Several Liability and Debt Collection

Photo of an agreement to represent joint and several liability.The joint and several clause appears in almost every legal loan document. Many people sign loan documents and guarantees after a quick glance because they want to make a deal. The issue with signing without reading the underlying documents is that if and when someone seeks to enforce the agreement as set forth in the document, you are charged with having read it and agreeing to the terms contained therein. Therefore, it’s important to know how joint and several liability can impact you, especially as it relates to debt collection in New York.

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