A default judgment is a court order entered against you when you fail to respond to a lawsuit or fail to appear at a scheduled hearing. It carries the same legal weight as a judgment entered after a full trial, which means the person who sued you can garnish your wages, freeze your bank accounts, and place liens on your property. In federal court, the response window is 21 days after you are served with the complaint.1United States Courts. Federal Rules of Civil Procedure – Rule 12 Miss it, and the plaintiff can win without ever proving the case.
What Causes a Default Judgment
The most common trigger is silence. Once a defendant is formally served with a complaint and summons, the clock starts. Federal defendants get 21 days, extended to 60 days if they voluntarily waive formal service, or 90 days if they are outside the United States.1United States Courts. Federal Rules of Civil Procedure – Rule 12 State courts set their own deadlines, commonly 20 to 30 days. Letting that period pass without filing an answer is the single most common path to default.
Non-appearance later in the case can produce the same result. A defendant who files an answer but then stops showing up for hearings or ignores discovery obligations can still face a default judgment. Courts treat ongoing silence the same as never responding.
The process itself has two stages, and the difference matters if you are trying to react quickly. First comes the “entry of default,” an administrative notation the clerk makes on the docket once the plaintiff files proof that no response was filed.2United States Courts. Federal Rules of Civil Procedure – Rule 55 The judgment itself comes second, when the court formally awards relief. Reacting between those two stages is easier than reacting after a judgment has been entered.
Limits on What the Plaintiff Can Win
A default does not give the plaintiff a blank check. The judgment cannot award more than the complaint originally asked for, and it cannot grant a different type of relief than what was demanded.3Office of the Law Revision Counsel. Federal Rules of Civil Procedure Rule 54 – Judgment and Costs If the complaint sought $15,000 in unpaid invoices, the default judgment cannot suddenly become $50,000. The prayer for relief in the original complaint functions as a ceiling.
For fixed-dollar debts like a loan balance or a specific contract price, the clerk can sometimes enter judgment without a judge’s involvement. For claims where the amount is not predetermined, such as pain and suffering in an injury case, the court holds a “prove-up” hearing where the plaintiff must present evidence justifying the number.
One additional protection applies when the defendant is in the military. Federal law requires the plaintiff to file a sworn statement about the defendant’s active-duty status before a default judgment can be entered, and the court may appoint counsel to protect an absent servicemember. Filing a false military service affidavit is a federal crime carrying up to a year in prison.4Office of the Law Revision Counsel. 50 USC 3931 – Protection of Servicemembers Against Default Judgments If the defendant has made any appearance in the case, even an informal one, the plaintiff must also serve written notice of the default judgment motion at least seven days before any hearing.5Legal Information Institute. Federal Rules of Civil Procedure Rule 55 – Default and Default Judgment
How the Amount Grows After Entry
A default judgment does not freeze on the day it is entered. In federal court, post-judgment interest starts accruing immediately at a rate tied to the weekly average one-year Treasury yield from the week before the judgment date, compounding annually and calculated daily.6Office of the Law Revision Counsel. 28 USC 1961 – Interest State courts apply their own rates, which vary widely.
The prevailing plaintiff can also recover litigation costs. Federal rules let the clerk tax filing fees, service expenses, and copying charges against the losing party.7Legal Information Institute. Federal Rules of Civil Procedure Rule 54 – Judgment and Costs Attorney’s fees are not automatic. They are recoverable only when a statute or a contract between the parties specifically provides for them.
How the Plaintiff Can Collect
Once the judgment is entered, it becomes an enforceable debt. A defendant who ignores the situation faces collection tools that reach directly into their finances.
Judgment Liens on Property
The plaintiff can record the judgment with the county recorder’s office, creating a lien against any real property the defendant owns there. The lien blocks the defendant from selling or refinancing the property until the debt is paid. In most states, a creditor can also “domesticate” the judgment in other states where the defendant owns property, extending the lien’s reach beyond the original jurisdiction.
Wage Garnishment
A judgment creditor can petition the court to garnish wages. Federal law caps garnishment for ordinary debts at the lesser of 25% of disposable earnings or the amount by which weekly earnings exceed 30 times the federal minimum wage.8Office of the Law Revision Counsel. 15 USC 1673 – Restriction on Garnishment Some states impose stricter limits. The money is deducted from the paycheck before the defendant receives it.
Bank Levies
A bank levy lets a sheriff or marshal seize funds directly from a checking or savings account. The creditor obtains a court order, serves it on the bank, and the bank freezes the account. After a short waiting period that varies by jurisdiction, the frozen funds are turned over. A single levy can empty an account, unlike garnishment, which takes a share of each paycheck over time.
Credit Reports and Background Checks
Default judgments are public records. Landlords, employers, and anyone running a background check can find them. Since 2017, the three major credit bureaus have voluntarily excluded most civil judgments from consumer credit reports, but the Fair Credit Reporting Act still permits reporting civil judgments for up to seven years from the date of entry.9Federal Trade Commission. Fair Credit Reporting Act Even if the judgment does not appear on a credit file, it can surface during manual checks for housing, licensing, or employment.
How Long the Judgment Stays Enforceable
Default judgments do not fade quickly. Enforcement periods vary by state, typically running five to twenty years. Most states also let creditors renew the judgment before it expires, resetting the clock. A defendant who waits it out often discovers the creditor renewed, and the balance has grown substantially with accrued interest.
Setting Aside a Default Judgment
A defendant is not necessarily stuck with the ruling. Federal Rule 60(b) lists several grounds for asking the court to vacate it:10Legal Information Institute. Federal Rules of Civil Procedure Rule 60 – Relief from a Judgment or Order
- Excusable neglect, such as a serious medical emergency or a complaint delivered to the wrong address.
- Defective service, which can make the judgment void entirely.
- Fraud or misrepresentation by the plaintiff during the process.
- Newly discovered evidence that could not have been found earlier through reasonable effort.
- The judgment has already been satisfied, released, or reversed on appeal.
- Any other reason justifying relief, though courts apply this catch-all sparingly.
Motions based on excusable neglect, newly discovered evidence, or fraud must be filed within one year of the judgment.10Legal Information Institute. Federal Rules of Civil Procedure Rule 60 – Relief from a Judgment or Order A void judgment, usually due to defective service or lack of jurisdiction, can be challenged at any time, though courts still expect the motion within a “reasonable time.” State deadlines vary but follow similar patterns.
Courts typically look for three things before vacating a default judgment: a good reason for the original failure, a potentially valid defense to the underlying claims, and no serious prejudice to the plaintiff. Most courts also want the defendant to attach a proposed answer to the original complaint, showing readiness to litigate immediately. If the motion is granted, the case rewinds to the pleading or discovery stage.
What Bankruptcy Does to a Default Judgment
Filing for bankruptcy halts most collection activity immediately. The moment the petition is filed, an automatic stay bars creditors from continuing lawsuits, garnishing wages, or pursuing levies.11Office of the Law Revision Counsel. 11 USC 362 – Automatic Stay If a plaintiff has filed for default judgment but the defendant files for bankruptcy first, the stay freezes the case.
Whether the underlying debt gets discharged depends on the nature of the debt, not on whether it was reduced to a default judgment. Most credit card balances and medical bills can be discharged. Certain categories survive bankruptcy regardless: debts from fraud, willful injury to another person or their property, child support, alimony, most student loans, and certain tax obligations.12United States Courts. Discharge in Bankruptcy – Bankruptcy Basics For debts involving fraud or intentional harm, the creditor must ask the bankruptcy court to rule the specific debt non-dischargeable. If the creditor stays silent, even those debts get wiped out.