What Happens After a Motion for Default Is Filed?

You missed the deadline to respond to a debt lawsuit. Now the collector filed a motion for default judgment.

You need to understand what happens next. You still have options to fight back.

A motion for default judgment gives debt collectors legal power. They can garnish your wages and freeze your bank accounts.

But filing a motion doesn’t mean you’ve lost yet. You can still protect yourself and your money.

What Is a Default Judgment?

A default judgment happens when you don’t respond to a lawsuit.

When debt collectors sue you, they send a summons. You have 20 to 30 days to respond, depending on your state.

If you miss that deadline, collectors can request a default judgment. The court essentially rules against you without hearing your side.

Default judgments give collectors serious collection powers. They can garnish your wages directly from your paycheck. They can freeze your bank account and take your money.

Your employer must comply with wage garnishment orders. They cannot fire you because of garnishment, but the money comes out before you see it.

Bank levies freeze your account immediately. The collector withdraws what you owe, leaving you without access to your funds.

What Happens After a Motion for Default Is Filed?

The judge must review the motion before granting it. You still have time to act.

Receiving a motion for default in the mail doesn’t mean you’ve lost. You haven’t lost until the judge signs the order.

The court reviews the case to determine if the motion should be granted. Judges look at whether proper notice was given and deadlines were followed.

If the motion is rejected, you get another chance. You can file your Answer and fight the debt in court.

If the judge grants the motion, a default judgment becomes official. But you can still file a motion to vacate the judgment.

Our partner Solo can help you respond to debt lawsuits and avoid default judgments entirely.

File a Motion to Vacate Judgment

A Motion to Vacate asks the court to reverse the default judgment. You’re requesting another chance to defend yourself in court.

You must act quickly after a default judgment. The longer you wait, the less likely the court will grant your motion.

After filing your motion, the court clerk gives you a hearing date. You’ll present your case to the judge in person.

The judge decides whether to grant or deny your motion. If granted, the default judgment is erased and your case continues.

Valid Reasons to Set Aside a Default Judgment

Courts follow specific rules about vacating judgments. Most states base their rules on Federal Rule of Civil Procedure 60.

Courts will set aside default judgments for these six reasons:

• Mistake, inadvertence, surprise, or excusable neglect
• Newly discovered evidence that couldn’t have been found earlier
• Fraud by the opposing party
• The judgment is void due to legal errors
• The judgment has been satisfied, released, or discharged
• Any other reason justifying relief from the judgment

You need a legitimate reason for missing the deadline. “I forgot” or “I was busy” typically won’t convince a judge.

Check your state’s Rules of Civil Procedure for specific requirements. Each state has slightly different standards and timeframes.

Other Options After a Default Judgment

Settle the Judgment

Settlement means negotiating a payment plan with the collector. You might pay less than the full amount owed.

Collectors may be less willing to negotiate after winning a judgment. They’ve already invested time and money in court.

You can settle with a lump sum payment or monthly installments. Lump sum settlements usually result in lower total payments.

Get any settlement agreement in writing before paying. Make sure it states the judgment will be satisfied and released.

Our partner Solo helps you negotiate settlements and respond to debt collectors effectively.

File for Bankruptcy

Bankruptcy should be your last resort for dealing with debt. Only consider it if you face multiple overwhelming debts.

Chapter 7 bankruptcy can eliminate the judgment and other unsecured debts. Your credit score takes a serious hit for seven to ten years.

Chapter 13 bankruptcy creates a repayment plan for your debts. You pay what you can afford over three to five years.

Bankruptcy affects your ability to rent apartments and buy homes. Landlords and lenders see bankruptcy on background checks.

Consult with a bankruptcy attorney before filing. They can explain whether bankruptcy makes sense for your situation.

How to Avoid Default Judgment

The best strategy is responding before the deadline passes. Most debt collection cases end in default because people don’t respond.

You don’t need a lawyer to file an Answer. You need to draft a written response and file it with the court.

Your Answer should deny the allegations and raise affirmative defenses. Common defenses include statute of limitations and lack of standing.

Check your state’s deadline immediately after receiving a summons. Mark the date on your calendar and set reminders.

Filing an Answer forces the collector to prove their case. Many collectors lack proper documentation and drop the lawsuit.

You have rights under the Fair Debt Collection Practices Act. Collectors must follow strict rules when suing you.

Don’t ignore a debt lawsuit hoping it goes away. Ignoring it guarantees you’ll lose and face collection actions.

Take Action Before It’s Too Late

A motion for default judgment is serious but not final. You have options to protect yourself and your finances.

File a Motion to Vacate if a judgment was already entered. Settle the debt if you can’t get the judgment reversed.

Better yet, respond to the lawsuit before default happens. An Answer gives you the best chance to fight the debt.

Time is critical in debt lawsuits. The sooner you act, the more options you have available.