Motion to Set Aside Judgment: How to Undo a Default

A default judgment just hit your record. The court ruled against you because you didn't respond to a lawsuit, missed a hearing, or ignored discovery requests. Now the creditor can garnish your wages, freeze your bank account, or put a lien on your property.

That doesn't mean it's over. You can file a motion to set aside (or "vacate") the judgment. If you win, the court reopens your case and you get another chance to defend yourself. This happens more often than you'd think—courts prefer deciding cases on the merits, not technicalities.

Here's how to do it, what grounds actually work, and what to expect when you file.

What a Default Judgment Means for You

When a creditor sues you, you typically have 20 to 30 days to file a written response (called an Answer). Miss that deadline and the creditor can ask the court to enter a default judgment. The judge doesn't evaluate the merits,they just confirm you didn't show up and award the creditor whatever they asked for.

Once that judgment is signed, the creditor becomes a judgment creditor. They can:

• Garnish your wages: In most states, they can take up to 25% of your disposable income each pay period.
• Levy your bank account: Your checking or savings account can be frozen and drained to satisfy the judgment.
• Place liens on property: They can attach a lien to your house or car, which must be paid when you sell or refinance.

A default judgment also wrecks your credit. It stays on your credit report for seven years from the date of entry and can drop your score by 100 points or more.

If you're already dealing with a judgment, consider whether filing bankruptcy makes sense. Chapter 7 wipes out most judgment debts. Chapter 13 can stop wage garnishments and give you three to five years to pay off what you owe. Use our bankruptcy screener to see if you qualify.

Grounds for Setting Aside a Judgment

You can't set aside a judgment just because you forgot or ignored the lawsuit. Courts require one of three specific grounds.

1. Improper Service of Process

If the creditor didn't properly notify you of the lawsuit, the judgment is void. Proper service means the creditor followed your state's rules for delivering the summons and complaint. Most states require:

• Personal service: A process server hands you the papers directly.
• Substitute service: The server leaves papers with another adult at your home or workplace, then mails you a copy.
• Service by mail: The creditor mails you the papers via certified or registered mail with return receipt.

Common service problems:

• The process server claimed they handed you papers when they didn't.
• Papers were left with a roommate who never told you.
• You moved and the creditor served your old address without attempting to find you.
• The affidavit of service contains obvious errors (wrong date, wrong description of you).

If service was defective, you can file a motion to quash service and set aside the judgment. You'll need to provide evidence,like proof you were out of state when the server claims they handed you papers, or utility bills showing you lived elsewhere.

2. Excusable Neglect

This means you had a legitimate reason for missing the deadline or hearing. Courts are skeptical here, so your excuse needs to be serious and documented.

What works:

• Medical emergency: You were hospitalized or incapacitated during the response period. Bring hospital records or a doctor's note.
• Accident or injury: You were in a car accident and physically unable to respond. Police reports and medical records help.
• Death in the family: You were dealing with a close family member's death and funeral. Bring a death certificate and funeral program.
• Military deployment: You were deployed or had orders that prevented you from responding. Federal law (SCRA) offers additional protections here.

What doesn't work:

• "I didn't understand the paperwork."
• "I thought it would go away."
• "I was too busy with work."
• "I was depressed." (Unless you have psychiatric records showing you were unable to function.)

Some states require you to show excusable neglect and a meritorious defense. That means even if your excuse is valid, you still have to prove you had a real defense to the underlying lawsuit.

3. Meritorious Defense

You have to show you had a valid defense if the case had gone to trial. This doesn't mean you'll definitely win,just that you have a real argument worth hearing.

Common defenses in debt collection cases:

• Statute of limitations: The debt is too old to sue over. Most states set a 3 to 6 year limit.
• Wrong amount: The creditor inflated the balance with bogus fees or interest.
• Identity theft or fraud: You didn't open this account.
• Paid in full: You already settled or paid the debt.
• Bankruptcy discharge: The debt was wiped out in a prior bankruptcy.
• Lack of standing: The creditor can't prove they own the debt or have the right to sue.

You'll need to explain your defense in your motion. If it's flimsy or you admit you owe the debt and have no defense, the judge will likely deny your motion.

How to File a Motion to Set Aside Judgment

Filing the motion involves drafting legal documents, gathering evidence, and appearing in court. Here's the process step by step.

Step 1: Draft Your Motion and Supporting Affidavit

You need two documents:

• Motion to Set Aside Default Judgment: This is the formal request asking the judge to vacate the judgment.
• Affidavit in Support: A sworn statement explaining why the judgment should be set aside. You sign it under oath.

In the motion, include:

• The case number and parties.
• The date the default judgment was entered.
• The legal grounds (improper service, excusable neglect, meritorious defense).
• A request for the court to set aside the judgment and reopen the case.

In the affidavit, provide:

• A detailed explanation of what happened (why you didn't respond).
• Supporting facts and dates.
• Your defense to the underlying lawsuit.
• Copies of evidence (medical records, proof of service errors, etc.).

Most courts have forms or templates available online. Search "[your state] motion to set aside default judgment form" or visit your local courthouse website. If your case is in small claims court, the process may be simpler and less formal.

Step 2: File the Motion with the Court

Take your motion and affidavit to the clerk's office in the courthouse where the judgment was entered. You'll pay a filing fee, typically $25 to $100 depending on your state and court. If you can't afford the fee, file a request to waive fees (called a "fee waiver" or "in forma pauperis" application).

The clerk will stamp your documents and give you a hearing date. Write it down. Miss this hearing and your motion gets denied automatically.

Step 3: Serve the Creditor or Their Attorney

You must send a copy of your motion and affidavit to the creditor's attorney (or the creditor if they don't have a lawyer). Most states require service by mail, but check your local rules. Some courts require certified mail with return receipt.

File proof of service with the court. This is usually a simple one-page form stating you mailed copies on a specific date.

Step 4: Attend the Hearing

Show up at least 15 minutes early. Bring copies of your motion, affidavit, and all supporting evidence. Dress like you're going to a job interview.

The judge will hear arguments from both sides. The creditor's attorney will likely argue you don't meet the legal standards or that you're just trying to delay collection. You'll need to clearly and confidently explain:

• Why you didn't respond to the lawsuit.
• What your defense to the debt is.
• Why the court should give you another chance.

Be concise. Judges hear dozens of motions a day. Stick to the facts and the law. Avoid emotional appeals or long backstories.

Step 5: If the Court Grants Your Motion

The judge will issue an order vacating the default judgment and reopening the case. You'll get a new deadline to file your Answer to the original complaint,usually 10 to 20 days.

Do not miss this deadline. File your Answer on time. Raise every defense you have. If the creditor can't prove their case, you may win outright or negotiate a better settlement.

Step 6: If the Court Denies Your Motion

You can appeal, but appeals are expensive and time-consuming. A more practical option: negotiate with the creditor. They may accept a lump sum payment for less than the full judgment amount. Get any settlement in writing and make sure it includes language dismissing the judgment.

If the creditor won't settle and you can't pay, bankruptcy may be your best option. A Chapter 7 bankruptcy stops garnishments immediately and discharges most judgment debts in four to six months.

Time Limits for Filing a Motion to Set Aside

Most states impose strict deadlines. You typically have 30 to 180 days from the date the judgment was entered. Some states allow longer if you prove you didn't receive notice of the judgment.

Examples:

• California: 6 months from the date of judgment.
• Texas: Generally within a "reasonable time," but courts prefer motions filed within 30 days.
• Florida: 1 year if the motion is based on excusable neglect.
• New York: 1 year from the date you learned of the judgment.

Check your state's rules immediately. If you're past the deadline, you may still be able to argue the judgment is void due to improper service, which usually has no time limit.

What If You Can't Set Aside the Judgment?

If the court denies your motion, you still have options:

• Negotiate a settlement: Creditors often accept 40% to 60% of the judgment amount in a lump sum. Get it in writing before you pay.
• Set up a payment plan: Some creditors will agree to monthly payments instead of garnishing your wages.
• File bankruptcy: Chapter 7 eliminates most judgment debts. Chapter 13 stops garnishments and lets you pay over time. See if you qualify with our free bankruptcy screener.
• Challenge the garnishment: You can file an exemption claim to protect a portion of your wages or bank account. Most states exempt at least some income for basic living expenses.

How Bankruptcy Stops Judgment Collection

Filing bankruptcy triggers an automatic stay, which immediately stops all collection activity,including wage garnishments, bank levies, and property liens. The stay lasts throughout your bankruptcy case.

In Chapter 7, most judgment debts are discharged in four to six months. The judgment stays on your credit report, but it's marked as "discharged" and the creditor can't collect.

In Chapter 13, you propose a repayment plan over three to five years. Judgment creditors usually get pennies on the dollar. Once you complete the plan, any unpaid balance is discharged.

If you're facing garnishment or levy, filing bankruptcy before the money is taken is critical. Once funds are seized, getting them back is much harder. Talk to a bankruptcy attorney or use our bankruptcy filing tool to explore your options.

Mistakes to Avoid

Don't do this:

• Ignoring the judgment and hoping it goes away. Judgments last 10 to 20 years in most states and can be renewed.
• Filing a motion without a valid legal ground. "I forgot" or "I didn't understand" won't work.
• Missing the hearing date. The court will deny your motion automatically.
• Failing to serve the creditor. Your motion will be dismissed.
• Not filing an Answer after the judgment is set aside. You'll end up with another default judgment.

Do this instead:

• Act fast. The sooner you file, the better your chances.
• Gather strong evidence (medical records, proof of improper service, etc.).
• Be prepared to explain your defense to the debt.
• Show up to court ready and on time.
• Consider hiring a consumer rights attorney if the judgment is large or complex.

The Bottom Line

A default judgment isn't necessarily the end. If you were improperly served, had a legitimate emergency, or have a real defense to the debt, you can file a motion to set aside the judgment and reopen your case. Most states give you 30 to 180 days to file, so move quickly. Gather your evidence, draft your motion, and show up to the hearing prepared. If the court denies your motion or you're past the deadline, bankruptcy may be the fastest way to stop garnishments and eliminate the debt for good.