We were contacted by a client who learned that she had a default judgment entered against her back in 2008 by Midland Funding or Midland Credit Management, one of the biggest debt buying companies in the country. Midland was represented by the debt collection law firm of Stephen Einstein & Associates whom commonly handle these cases. Our client was currently living in Jamaica and told us that she could not possibly have been served with a summons and complaint in 2008 because she had moved to Jamaica for work in 2005 but would travel back and forth from the US to Jamaica. The judgment had been accruing interest at the statutory New York rate of 9% and grew to over $30,000.
It was important for our client to have the judgment vacated as in some cases a money judgment can affect the status of a Visa when living abroad. In her case, she was in Jamaica for work and could not afford to lose her work visa status. We drafted an order to show cause asking the court to vacate the judgment against our client based on the impossibility of service of process. Stephen Einstein & Associates contacted us and stated that they would agree to vacate the judgment against our client and allow us to enter an answer on her behalf. Once we did so, they contacted us again about the possibility of settling the matter outside of court to save on litigation fees for all parties. Midland agreed to reduce the balance owed by a remarkable 75%.