Will Westenhoefer be Prejudiced if the Default Judgment is Set Aside?
This court finds that Westenhoefer will not be prejudiced if the default judgment is set aside. The burden of proving such prejudice lies with Westenhoefer. In re Baskett, 219 B.R. 754, 760 (6th Cir. BAP 1998). Westenhoefer does not address the issue of prejudice in his pleadings. Consequently, this court concludes that no prejudice will result by setting aside the default judgment against the Whites. 3. Have the Whites Raised a Meritorious Defense? This court finds that the Whites verified motion raises potentially meritorious defenses. Westenhoefer s complaint alleges that the Debtors s real estate transfer to J.L. White was fraudulent and without consideration. As a defense, the Whites respond by saying that J.L. White paid them $20,000 for the real property at issue. As proof of their defense, the Whites offer copies of a promissory note and two deposit slips of $10,000 a piece made around the time of the sale. In addition, the Whites each offer an affidavit of their own testimony
