Our client was initially sued in 2005 by
Houslanger & Associates, on behalf of their client Colonial Credit Corporation. A default judgment
was not enforced until almost two years later in 2007.
Palisades LLC, a debt buyer eventually bought the debt from Colonial and enforced this
judgment against our client. A default judgment was enforced against the
client because he had moved to Florida and had no clue that he was sued
or that a judgment was enforced against him. Houslanger and Associates
were able to freeze his bank account although he was out of the state
and even though the judgment against him was not domesticated.
The debt at this point in time had risen to almost $10,000. We immediately
contacted Houslanger & Associates to resolve this case. We argued
that this debt buyer would have a difficult time proving that this debt
was properly assigned to them since it was bought and sold multiple times.
We felt that it was unlikely that Houslanger could show us chain-of-title
proving the sale of the debt from one buyer of the debt to another. The
debt buyer would also have a difficult time complying with the hearsay
rules by having agents of the debt buyers come in to testify that this
debt was actually properly acquired. Finally, we made it clear that our
client lived in Florida from at least 2004, at least a year before he
was sued in 2005. Houslanger and Associates agreed to have the judgment
against our client vacated and we were able to reach an out of court settlement
for $800 in total, off of the almost $10,000 that had accrued.