Speed, then, while not unimportant, can sometimes share space with other goals, like giving negligently tardy filers a second chance. See, e.g., In re Bailey, 411 B.R. 492, 495-96 (Bankr. S.D. Ga. 2009) ("[W]hile the opening of any default would cause delay and therefore would be somewhat prejudicial," it is nevertheless warranted where defendants plead potentially meritorious defenses and the period of default is not unreasonably long); see id. at 496 (even if the reason for default, and thus delay, "is not a compelling excuse," so long as no judgment has been entered and no prejudice would be incurred, "the general policy favoring decisions based on the merits" counsels setting aside the default).
See e.g., In re Bailey, 411 B.R. 492, 495 (Bankr. S.D. Ga. 2009). On the one hand, Nationstar faces significant financial loss if the Court were to enter default judgment against it.
See, e.g., In re Bailey, 411 B.R. 492, 495 (Bankr. S.D. Ga. 2009). The Plaintiffs have shown no prejudice other than the fact that they will have to prosecute the lawsuit if the default is set aside.
A default should not be set aside, however, if the Trustee's "cost will increase to an unfair degree." In re Bailey, 411 B.R. 492, 495 (Bankr. S.D. Ga. 2009) (citations omitted).
A default should not be set aside, however, if the Trustee's "cost will increase to an unfair degree." In re Bailey, 411 B.R. 492, 495 (Bankr. S.D. Ga. 2009) (citations omitted).
They admit that they only consulted an attorney when they received notice of the default judgments. Citing Bailey v. Hako-Med USA, Inc. (In re Bailey), 411 B.R. 492 (Bankr. S.D. Ga. 2009), a case in which default judgments had not yet entered, the Defendants also argued that the Trustee would not be prejudiced if the defaults were set aside and that mere delay is insufficient, as "'prejudice is shown where evidence has been lost, destroyed, or will be more difficult to obtain, or where plaintiff's costs will increase to an unfair degree as a result of setting aside the default.'" Id. at 495 (citing Washington v. Rogers, 2007 WL 1732575, at *2 (S.D. Ga. June 14, 2007) (citations omitted))