Default Judgment

Default judgment summary:

A default judgment is issued by a judge if you don't appear in court when you're supposed to or correctly follow certain procedures related to a lawsuit or legal complaint.
Not responding to a lawsuit means you give up your right to defend yourself.
Default judgments can typically be reversed only if you can prove extenuating circumstances outside your control.

Default Judgment Definition and Meaning

Courts make judgments to determine the outcome of a legal case. A default judgment is issued for one party (plaintiff or defendant) when the opposing side fails to appear in court or respond to a summons or other legal filing. It's not uncommon, for example, for a judge to issue a default judgment in favor of a creditor (the plaintiff in a debt lawsuit) because the defendant (debtor) failed to respond to the summons or didn't complete certain required steps.

Default judgments can be issued if you ignore a legal complaint or summons, miss a hearing date, or you don't submit the proper paperwork in time.

Key Characteristics of Default Judgment

Default judgments have several characteristics:

No full trial. Default judgments are entered without a full trial, as the defendant does not participate.
Binding court order. A default judgment is a binding court order. That means the judgment is a legal order that the defendant is required to obey. If the court grants the default judgment, it becomes a binding court order.
Defendant’s assets. The judgment allows the plaintiff to collect the amount owed from the defendant's assets, such as bank accounts, wages, or property.
Judgment can be vacated. You can seek to have the default judgment vacated if you can demonstrate a valid reason for failing to appear in court or respond to a lawsuit.
Quick judgment. Default judgments can be entered quickly and without the defendant's knowledge. That’s why it’s so important to respond promptly to legal notices.

Default Judgment: A Comprehensive Breakdown

To get a default judgment, a plaintiff in a debt lawsuit (the creditor) has to follow specific steps:

Serve you with the complaint or petition and a legal summons.
Give you time to respond—generally, 21 to 30 days. The time typically depends on your state.
If you don't respond, the plaintiff creditor must file the forms to request a default judgment and show that you never responded.

If the judge grants the creditor's request, you'll be served with a Notice of Judgment.

Suppose a creditor sues you for an outstanding debt. You'll be served with written notice of the complaint and may be given a date for a hearing. If you don't respond to the complaint within the specified window, or you fail to show up to the hearing, the judge can declare the creditor the winner by default and award the judgment in their favor.

A default judgment generally gives the plaintiff whatever they requested in the initial complaint, as well as interest and court costs.

This could lead to wage garnishment or your bank account being frozen.

Can a default judgment be overturned?

Yes, in some cases a default judgment can be undone, or vacated, by filing a motion with the court. You'll need to prove you missed the deadline or hearing because of serious circumstances outside your control. Valid reasons include a major accident or illness, or that you weren't actually served the original complaint.

How to avoid a default judgment

The best way to avoid a default judgment is to respond to legal complaints or summons in a timely manner. If you can't meet the deadline for some reason, let the court know as soon as possible.

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Default Judgment FAQs

How do I respond to being sued for credit card debt?

The most important thing is to make sure you respond to the court summons. Otherwise, you lose automatically. This is called a “default judgment.”

How you respond to being sued in small claims court for credit card debt depends on whether you think the complaint is legitimate (if you actually owe the debt) and if it's within the statute of limitations.

If the debt is not yours, if the debt is already paid, or if the creditor or debt collector has made a mistake, you might get the small claims court case dismissed. Consider getting professional legal help to advise you on how to respond to the lawsuit in small claims court.

How long do debt collectors have to sue me?

The period during which you can be sued for an old debt, called the statute of limitations, depends on your state and the type of debt. In most places, it's between three and seven years. That means depending on where you live, a debt might linger on your credit reports longer than you can legally be sued for it.

Creditors might try to sue you anyway, even after the statute of limitations passes. If they do, you could ask the judge to throw out the case. That’s called using an affirmative defense.

How do you know if you're judgment proof?

The term judgment proof or collection proof is a little misleading. Many believe that if they don't have savings, property or income to cover a judgment that they're off the hook. However, even lawsuit losers who earn very low incomes may have a percentage of their disposable earnings garnished. In addition, judgments can last for many years and judgment creditors can renew them. Interest on what you owe continues to accrue and your balance increases. If your income improves in the future or you come into some money, your creditor may be right there waiting to grab it. You may truly be judgment-proof if your income and assets are exempt from collection for instance if your income is all from Social Security and your only savings is in a 401(k).