A few questions regarding what has proven to be a traumatic, stressful, totally confusing and bizarre situation, a terrifying experience that led to my business
"MELTDOWN:" A few months ago, a former partner sabotaged my internet business, that was generating a high monthly recurring income. Access was removed to my systems and (electronic) books/records disappeared. All cash was drained from our operating account. The systems went offline and stopped working, it was the end of my business.
Because of the system crash, I was unable to calculate monthly payment amounts owed to my existing monthly buy/sell partners, and most of them are preparing to file lawsuits now (in different jurisdictions
). Also, prior to the above mentioned sabotage attack, a -previous- business had been sued in district court on a complex IP litigation, which named me personally as a defendant in addition to my old corp. So I am currently left in what has turned out to be a nightmare scenario: No cash in my business, no operating income, problems with books and records, and several (8 or more) former partners preparing to file lawsuits against the LLC
(I have no atty to defend the business entity) and me personally. (yes, they are well funded and will sue--seeking a median amount of about $15k-$25k each.) Also, at the same time, I am left on my own to defend the complex IP case that is now starting and I expect it to heat up quickly. I am at the lowest point of my entire career, no cash to hire lawyers to defend any of these cases, and facing aggressive, well funded plaintiffs (particularly the IP group) who want to bury me. Here's the specific question: As a practical matter, how does one live life, after incurring a bunch of large default judgments?
It is entirely impractical for me to mount an effective defense against any of these groups now, and even less so, at the rate which the lawsuits are coming in. It is highly likely I am going to end up with as many as eight default judgments, (range $7k-50k each) some against me, some against my current or former business entity. One of the defaults might come from the complex IP case which I don't stand a chance of defending; it could easily be as high as $1MM+, the plaintiffs are ridiculously aggressive and particularly delighted seeing me unable to defend myself, so I would not be surprised if they are able to set their default judgment as high as $10MM or maybe more.
I know how important it is to try to avoid the defaults. I drove myself insane trying to find a way to fund even a modest defense against any of the plaintiffs who are moving so fast and aggressive. It simply can't be done at this time. So now I've turned to what follows; asking, as a practical matter, how does one live life, after going through a overnight business meltdown leading to a litigation storm that left a group of large default judgments? Are you constantly called to debtor's exams in different states? Do the plaintiffs try to use tricks from the debtors exams to get you in contempt and keep you in jail? For example, I read that plaintiffs are first getting their judgment, then finding a way to get an actual court ORDER that the judgment is to be paid, and then keeping the debtor in jail until the entire amount is satisfied (debtor's prison), because as long as the entire amount hasn't been paid, the plaintiff makes an argument that the debtor is in contempt.
It is a very difficult time, to say the least. Traumatic. Most attorneys address situations of a single default judgment, which would be easier to deal with. So far, I have not been able to find a lawyer who would address the possibility of having any kind of life after getting buried in a group of default judgments. What if the total amount I owe in judgments is $10MM , and 10 other smaller judgments in the amount of $7k-$50k each, all over the USA in different jurisdictions? What is life like in that case, and most importantly, can one even have a life? Thank you so much for considering an answer to this question, this is my life, I don't know what to do--no one I have met so far seems capable of anticipating the scenario where the defaults DO issue, budget is not available within time to appeal, and life simply goes on. How does one live life, and what is that life like, with multiple default judgments?