Friday, January 22, 2010

What can happen if you lose a civil case in federal court.?

If someone files a civil lawsuit against you for money and the case defaults, what can happen? I own a small business and the case is against me as a individual and my small company as a corporation. If I cant hire a lawyer to respond it will automatically defaults, what can potentially happen to my business? It is just a website, we have no products we stock, so what is the worst case scenario. ThanksWhat can happen if you lose a civil case in federal court.?
A default judgment against the business will allow the plaintiff to attempt to collect the judgment. Assuming the business is a corporation, the best way to do that is to pierce the corporate veil. If the plaintiff can show that the corporation forms were not followed, you could personally be liable for the judgment against the corporation. If the business is not a corporation, you are personally liable for any judgment.What can happen if you lose a civil case in federal court.?
If a person files a lawsuit and the the defendant (the person against whom the suit was filed) does not respond to the complaint within a certain amount of time, the person who filed the lawsuit (the plaintiff) can ask the court to enter a default judgment. A default judgment is an order telling the defendant that he owes the amount of money that the plaintiff was suing for. Once someone gets a judgment, he can try to collect the money using various means (including garnishing wages). If a default judgment is entered, there is also a means by which the defendant can move to set it aside and then litigate the case.

No comments:

Post a Comment