Case Note: Emergency Litigation to Undo Identity Theft

The Situation

A client discovered that her identity had been stolen after learning that a default judgment had been entered against her. Funds had already been seized from her personal savings account, and a court-ordered transfer of those funds to the judgment creditor was scheduled to occur within a week.

She had never incurred the debt, never been served, and had no prior notice of the lawsuit.

The Strategy

Time was the critical factor. We immediately moved to vacate the default judgment, asserting lack of service and identity theft, and filed counterclaims to put the merits squarely at issue. In parallel, we sought and obtained an adjournment of the transfer proceeding to prevent the imminent release of seized funds while the vacatur was pending.

Given the circumstances, we treated the matter as a social justice case. The client was facing the consequences of a system that had failed to distinguish between a victim of identity theft and a debtor, and immediate action was required to prevent irreversible harm.

We assembled comprehensive documentary evidence establishing identity theft and appeared in court prepared to place a full record before the judge. Facing that record, the creditor requested an adjournment.

Before the next appearance, we engaged in focused negotiations. Confronted with the evidence and the procedural posture of the case, the creditor conceded.

The Outcome

The parties entered into a stipulation acknowledging that the client was not responsible for the debt and that the judgment would not be enforced against her. We promptly notified the court overseeing the transfer proceeding, and the seized funds were returned to the client.

The client received this representation at a substantially reduced rate, reflecting the nature of the case and the urgency of preventing an unjust result.

The Takeaway

Civil procedure can be unforgiving, particularly for individuals who are unaware that a lawsuit exists. When identity theft intersects with default practice, meaningful advocacy can make the difference between systemic failure and a just outcome.

Advisory Note

If you discover a judgment, account restraint, or garnishment tied to a debt that is not yours, do not assume it is too late. Swift legal intervention can stop transfers, restore funds, and clear your record before lasting damage occurs.