Selip & Stylianou, the collection law firm formerly known as Cohen & Slamowitz obtained two default judgments against our client in 2008 and 2009 respectively. The first creditor was Metro Portfolios, Inc., and the second was Gemini Asset Recoveries both of which are debt buyers. Our client is an elderly Vietnam veteran who spent most of his time in VA hospitals or shelters during those years due to his severe financial and medical hardship. Selip sued our client on behalf of both of these debt buyers and were able to obtain default judgments against our client for both even though service upon him would have been virtually impossible. The amount on both judgments had increased to over $5,000 due to New York judgment interest accruing at 9%.
Our client had recently recovered from some difficult years and moved out of New York. His only source of income was a combination of Social Security Disability as well as Veterans benefits both of which are considered to be exempt income. Neither Metro Portfolios nor Gemini Asset were ever able to enforce on these judgments or recover any assets or property. We contacted Selip & Stylianou and demanded that they both vacate the judgments against our client and dismiss both cases against him. Otherwise we would file a motion to vacate the judgments and ask the court to dismiss the cases based on a number of defenses including a lack of standing by the debt buyers. Knowing that it would be very difficult to enforce a judgment against someone who is out of state and receives exempt income only, as well costly to defend a motion to vacate and dismiss, both Metro Portfolios and Gemini Asset agreed to vacate the judgments and dismiss the cases against our client.