Legal Question in Civil Litigation in Illinois
My husband and I closed our S Corp last year and a client sued me personally. Our bankruptcy lawyer advised me to ignore it since we were declaring chapter 7. He then messed up the paperwork and I was dismissed from the chapter 7. Since we did not appear the judge found in the clients favor and now there is a lien on my credit report. What would you advise to do. File a motion (it's over 30 days) asking to drop it since the agreement was with a corporation? Make the lawyer refile a chapter 7 for me? Thank you.
1 Answer from Attorneys
You really need to see an attorney in person. Once the default judgment was entered against you, it is enforceable unless you can get it set aside, even if the contract was with the corporation. Even though you have missed the normal period for contesting a default judgment, a judge may, in his discretion, set it aside if you present a compelling case for him or her to do so. Every day you wait, that option becomes less likely to be available.
As for the Chapter 7, you need to talk to your bankruptcy lawyer (or another bankruptcy lawyer) to see what options are available.
In either case, you need to discuss this personally with an attorney so that he can get all the appropriate details. The sooner, the better.
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