Key takeaways
- A default judgment is entered when a defendant does not respond to a lawsuit in time. In consumer debt cases, it is the most common outcome.
- A judgment lets the creditor use court tools such as wage garnishment and bank levies, and it can last for many years.
- You may be able to have it vacated (set aside), for example if you were never properly served, or for mistake or excusable neglect, usually combined with a valid defense.
- Deadlines are strict, often measured in months. Act as soon as you learn about the judgment.
Many people discover a default judgment only when their paycheck is short or their bank account is frozen. They never saw a summons, or they saw it and did not understand that they had to respond. If that is your situation, there may still be options. This guide explains what a default judgment is, how it is enforced and how to challenge it.
What is a default judgment?
When someone is sued, they must respond (usually by filing a written answer) by a deadline. If they do not, the plaintiff can ask the court to find them in default and enter a judgment, typically for the amount claimed plus costs and, where allowed, interest and attorney’s fees.
In a default judgment, the court usually does not examine the plaintiff’s evidence in depth. That matters in debt buyer cases, where documentation of ownership and amount is often thin. See who owns my debt?
Why default judgments are so common in debt cases
- The summons was sent to an old address.
- The papers were left with someone else, or never actually delivered (sometimes called “sewer service”).
- The person received the papers but didn’t realize they needed to file anything, or thought calling the collector was enough.
- The person assumed they had no defense, so did not respond.
- The person was already in a payment or settlement arrangement and assumed the lawsuit would be dropped.
If you have been sued and have not yet missed the deadline, respond now. Our guide on how to answer a debt collection lawsuit explains each step.
How a default judgment is enforced
A judgment turns the plaintiff into a judgment creditor. Depending on state law, it can:
- Garnish wages, within federal and state limits. DebtRemediationTools.org explains the limits in wage garnishment: how it works.
- Levy bank accounts, freezing and taking funds, subject to exemptions such as directly deposited Social Security.
- Place a lien on real estate you own.
- Require you to appear for a debtor examination about your income and assets.
Judgments typically accrue interest at a statutory rate and can remain enforceable for many years; in many states they can be renewed. A judgment may also appear in public court records.
Can a default judgment be vacated?
Often, yes, if you act quickly and have a valid reason. Most states have a rule, often modeled on Federal Rule of Civil Procedure 60(b), that allows a court to set aside a judgment. Common grounds include:
1. You were not properly served
If you were never served according to the rules, the court may not have had jurisdiction over you, and the judgment may be void. In many courts, a void judgment can be challenged even after ordinary deadlines have passed. Get a copy of the proof of service (also called a return of service or affidavit of service) from the court file and check the name, address, date, time and description of the person served. Errors or impossible details are evidence.
2. Mistake, inadvertence or excusable neglect
For example, you were hospitalized, you misunderstood the deadline because of a court notice, or you relied on a settlement discussion. These grounds are usually subject to a time limit, frequently no more than one year after the judgment, and the motion must also be filed within a reasonable time after you learned of it.
3. Fraud or misrepresentation
If the plaintiff misrepresented facts to the court, for example about service, ownership or the amount.
4. The debt was already paid, settled or discharged
If you had paid or settled before judgment, or the debt was discharged in bankruptcy, the judgment can be challenged.
A meritorious defense. Courts usually want to see that you have a real defense if the case is reopened, such as the statute of limitations, lack of proof that the plaintiff owns the debt, a wrong amount, or that the debt isn’t yours.
Step-by-step: what to do now
- Get the court file. Find the case number (on garnishment papers or by searching the court’s online docket) and request copies of the complaint, proof of service and judgment.
- Write down when you first learned of the judgment. Timing matters for any motion.
- Identify your grounds and your defense using the lists above.
- File a motion to vacate, set aside or remove the default (the name depends on your state and court). Many courts provide forms. Attach a sworn statement (affidavit) explaining what happened and, where required, a proposed answer showing your defense.
- Ask for a stay of enforcement, such as garnishment, while the motion is pending, if your court allows.
- Attend the hearing with copies of your documents.
- If the judgment is vacated, file your answer within the time the court gives you and prepare to defend the case, or negotiate from a stronger position.
Massachusetts residents should also review Massachusetts debt collection laws, including the protections available after judgment.
If the judgment stands: options that remain
- Claim exemptions for protected income and assets.
- Negotiate a settlement or payment plan with the judgment creditor in exchange for releasing the garnishment. Get it in writing; see get your debt settlement agreement in writing.
- Request a satisfaction of judgment once paid, and make sure it is filed with the court.
- Consider bankruptcy if judgments and other debts are overwhelming. An automatic stay stops most collection, and many judgments for unsecured debt can be discharged. Compare options on DebtRemediationTools.org’s bankruptcy page.
Credit reporting and judgments
The three national credit bureaus generally no longer include civil judgments on consumer credit reports, but the underlying collection account can still appear. If it is inaccurate or outdated, dispute it. See how to dispute a collection on your credit report. Judgments remain public court records and can be found in background checks.
Frequently asked questions
It depends on the state and the reason. Motions based on mistake or excusable neglect are often limited to a reasonable time and no more than about one year. Challenges based on lack of service may be possible later. Act immediately.
Often, yes. If service was not proper, the court may not have had jurisdiction, and the judgment may be void. You will need evidence that you were not served as the proof of service claims.
Not necessarily. It reopens the case, so you can file an answer and defend it. Many cases then settle or are dismissed when the plaintiff cannot prove its claim.
Possibly. Ask the court for a stay of enforcement while your motion is pending.
It varies by state, often ten years or more, and many states allow judgments to be renewed. Interest may continue to accrue.
Next step
If you have just discovered a default judgment, time matters. Book a debt remediation consultation to review the court file, and speak with a consumer attorney about filing a motion.
This article is for general education and is not legal advice. Rules for vacating judgments vary by state and court; consult a licensed attorney promptly.
debtremediation.org/ · Page
