Default Judgment: What It Is & How to Fight Back

A debt collector sued you. You missed the deadline to respond. Now a court entered a default judgment against you.

You still have options. You can fight back and potentially win.

Don't Let Collectors Garnish Your Wages

A default judgment gives debt collectors power to take your money directly from your paycheck. Fight back with proper legal documents before they start garnishing.

Challenge the Judgment Now

What Is a Default Judgment?

A default judgment is a court ruling against you. Courts issue these when you fail to respond to a lawsuit.

The court sides with the debt collector automatically. They win without proving their case.

Default judgments give debt collectors serious power. They can garnish your wages, freeze your bank accounts, and seize your property.

How Default Judgments Happen in Debt Lawsuits

Debt collectors file a lawsuit and serve you with a Complaint. You have a deadline to file an Answer.

Most states give you 20 to 30 days to respond. Miss that deadline and the collector files for default judgment.

The court grants the judgment without hearing your side. The collector gets everything they requested.

The judgment includes the debt amount plus court costs, interest, and attorney fees.

Your Options After a Default Judgment

A default judgment feels final. It’s not.

You can ask the court to set aside the judgment. You can also negotiate a settlement with the collector.

Both options require quick action. The longer you wait, the harder it becomes.

Option 1: Motion to Set Aside the Judgment

You can file a motion asking the court to vacate the default judgment. Courts grant these motions for valid reasons only.

Valid reasons include:

You never received the lawsuit papers
You had a legitimate excuse for missing the deadline
You discovered new evidence that wasn’t available before
The debt collector committed fraud
You already paid the debt

Courts won’t set aside judgments just because you forgot to respond. You need a compelling legal reason.

Time matters critically here. File your motion as soon as possible after discovering the judgment.

Each day you wait weakens your case. Courts assume you accepted the judgment if you waited months.

Option 2: Negotiate a Settlement

You can still negotiate with the debt collector. They might accept less than the full judgment amount.

Collectors prefer payment over chasing assets. Offer a lump sum payment if you can afford it.

Your negotiating power is weaker after a judgment. Collectors have legal authority to collect now.

They may refuse to budge on the amount. But negotiation costs you nothing to try.

Get any settlement agreement in writing. Confirm they’ll dismiss the judgment once you pay.

How to File a Motion to Set Aside

You must file specific legal documents with the court. Your motion needs proper legal grounds and formatting.

Our partner Solo helps you create these documents correctly. Their system guides you through each step.

You answer questions about your situation. They generate the proper court documents for you.

You can file the documents yourself or pay for attorney review and filing.

What Happens If You Ignore a Default Judgment

Ignoring a default judgment makes your situation worse. Collectors will pursue aggressive collection methods.

They can garnish up to 25% of your wages. They can freeze your bank accounts without warning.

In some states, they can place liens on your property. The judgment accrues interest daily.

The judgment stays on your credit report for seven years. It damages your credit score significantly.

Act Quickly to Protect Yourself

Default judgments carry serious consequences. You must act fast to protect your assets.

Contact the court to get copies of all case documents. Review them carefully for errors or service problems.

Decide whether to fight the judgment or negotiate settlement. Either path requires immediate action.

Our partner Solo can help you respond properly to debt collectors. They provide tools to answer lawsuits and challenge judgments.

Don’t let a default judgment destroy your financial future. You have rights and options.

Frequently Asked Questions

What is a default judgment in a debt collection case?

A default judgment is a court ruling in favor of the debt collector because you failed to respond to the lawsuit. The court grants the judgment without hearing your side of the case. The collector can then garnish your wages, freeze your bank accounts, and seize your property to collect the debt.

How do I set aside a default judgment?

You must file a motion with the court asking to vacate the judgment. You need a valid legal reason such as improper service, fraud, excusable neglect, or new evidence. File your motion as quickly as possible after discovering the judgment, as courts are less likely to grant motions filed months later.

Can I still negotiate with a debt collector after a default judgment?

Yes, you can still negotiate a settlement after a default judgment. Collectors may accept a lump sum payment for less than the full amount. However, your negotiating power is weaker because the collector already has legal authority to collect. Get any settlement agreement in writing and confirm they'll dismiss the judgment.

What happens if I ignore a default judgment?

Ignoring a default judgment allows the collector to garnish up to 25% of your wages, freeze your bank accounts, and place liens on your property in some states. The judgment accrues interest daily and stays on your credit report for seven years, significantly damaging your credit score.

How long do I have to respond to a debt collection lawsuit?

Most states give you 20 to 30 days from the date you're served with the lawsuit to file an Answer with the court. The exact deadline varies by state and should be listed in the Complaint papers. Missing this deadline allows the debt collector to request a default judgment.

What is a Default Judgment? Your Options to Fight Back