Thank you for the additional information and I am happy to explain the implications of both.
Your bankruptcy attorney is correct that your default judgment would be stayed by the bankruptcy filing. However, the court that entered the default judgment would need to be informed that you filed for bankruptcy in order to stay the proceedings. Hopefully, your bankruptcy attorney is doing that, but you will want to make sure. Alerting the court and getting the stay will mean that there will be no more show cause hearing, so that will be taken care of right away.
That being said, you stated that the creditor's lawsuit was filed against you in NY when you live in VA. The lawsuit needed to be filed in VA where you live. The fact that it wasn't means you could have challenged the venue and had the case dismissed. However, you waived that right by not challenging the venue in the proper amount of time. I do understand that you were sick and I completely understand, but that is not a valid legal excuse for the court with regard to the challenge. However, you CAN still file a motion to vacate
and set aside the default judgment based on the fact that you were sick. This will at least serve to remove the judgment from your public record. What's more, because of the bankruptcy, there would be no reason for the plaintiff to continue the case and the debt will just end up being discharged in the bankruptcy.
I do understand that having the bankruptcy on your record is not ideal, but there is no way to prevent that now that you have filed. However, I hope I have helped to answer your question about how to take care of any further proceedings in the case in NY and how to potentially get that default judgment off your record. If you have any further questions, I am very happy to keep assisting you! If not, would you kindly leave me a positive rating at this time? It is the only way that the site compensates us and it costs you nothing further to do. Thanks!