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A default judgment happens when you don’t respond to a lawsuit — usually from a debt collector. The judge decides the case without hearing your side.
It's a ruling in favor of the plaintiff (the one suing) when a defendant doesn’t respond to a court summons or fails to show up in court. You generally have 20 to 30 days to respond to a court summons.
What happens after a default judgment is passed against you?
If you haven’t responded by the deadline stated in the summons, the plaintiff can try to collect the money you owe. This may include:
- A lien on your property.
- Wage garnishment (money taken directly from your paycheck).
- A bank account levy (money taken from your bank account).
Default judgments are no longer included in your credit report, but they are public records. Credit lenders may not want to lend to you if you’ve had a default judgement.
How to handle a default judgment
If you get notice of a default judgment or garnishment, here’s what to do.
1. Gather information
The debt collection process may unfold over several years before a lawsuit happens. The debt may be sold and resold from collector to collector, and errors can creep in. Make sure the judgment is for a debt you actually owe, and in the correct amount.
Collect all information you have, including:
- Bills from the original creditor.
- Notices from the debt collector, such as the validation letter.
- Any court documents you received.
If you never received a collections notice, or weren’t served a court notice before the lawsuit, the debt collector may have violated your consumer rights.
Consider getting legal advice on next steps, such as asking the court to vacate the judgement if you weren't properly served.
What Redditors say: We used AI to scan discussions about default judgement on relevant Reddit threads. While we can't confirm the validity of these anonymous posts, many users say they were never served with a summons. If that happens to you, users advise checking with the local courthouse for official documentation.
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2. Get legal help
You can search the Legal Services Corporation. Many organizations offer free or low-cost services.
A lawyer can help you learn if the judgment is correct and, if so, help you figure out your options. If the judgment is incorrect, your lawyer can help you decide how to challenge it.
3. Choose a course of action
You have four main options to deal with a default judgment:
- Accept the judgment.
- Settle the judgment for less.
- Challenge the judgment.
- Pursue debt relief.
Accept the judgment
If you do owe the money, simply accepting the judgment is probably your best option. You can pay in full with a lump sum directly to the creditor, if you can pull together enough money.
A nonprofit credit counselor can help you examine your budget to see how to afford it.
You do have rights in the garnishment process. You have to be legally notified of the garnishment, and you can file a dispute if the notice has inaccurate information.
Some forms of income, such as Social Security, are exempt. You can challenge a garnishment order if your rights have been violated or if it would prevent you from affording basic necessities.
Settle the judgment
A creditor may agree to settle the judgment for less than you owe. This typically happens when the creditor thinks you might file bankruptcy and wipe out the debt that way.
Settling can be a win-win. The creditor gets at least partial payment for the debt — although it usually will require it as a lump sum. You pay less and avoid a long wage garnishment. The creditor will file a “satisfaction of judgment” with the court.
What Redditors say: If you determine the judgement is valid, Redditors who've chimed in about their experiences say it's best to try for a lump-sum settlement negotiation. Posts suggest the sum could range between 50% and 70% of the total.
Be sure to get a written agreement that says exactly how much you will pay, and when, and that the payment settles the entire debt.
An experienced consumer attorney can help ensure a successful settlement.
Challenge the judgment
If a default judgment was made in error, you may have grounds to challenge and have it vacated, or set aside. You might be able to do this if you never owed the debt or weren’t notified of the lawsuit, or if the case was mismanaged.
If you knew of the lawsuit but never responded, you generally have six months to argue “excusable neglect.” You can cite circumstances such as illness or travel.
If you didn’t know about the suit, you’ll generally have up to two years to challenge it. State laws vary, so seek legal counsel.
Challenging a judgment takes time and dedication but can pay off and you could get money returned through restitution.
Pursue debt relief
If you see no way to handle the default judgment order, you may want to discharge the judgment through bankruptcy.
Consult a bankruptcy attorney to see if it’s a good option for you.
Act quickly. If you file a bankruptcy petition, the judgment and all enforcement actions will be put on hold.
Frequently asked questions
How serious is a default judgement?
A default judgment is a legally binding court order, and it can result in a creditor garnishing your wages, putting a levy on your bank account or seizing assets to collect the money. It can also negatively affect your ability to get credit, since judgments are public records.
Can you go to jail for not paying a default judgment?
While technically you can’t go to jail for not paying a default judgment, it is a legal ruling. Hence, creditors are allowed to do various things to collect their money, including garnishing your wages, putting a levy on your bank account or placing a lien on your home.
If a creditor isn’t able to get money in those ways, they might launch a debtor’s examination . This is a court proceeding where the creditor can ask you questions about your income and assets. If you skip a court summons like this or otherwise violate a court order, you could be arrested.
If you don’t pay a default judgment, interest may also start accruing on the balance.
How long does a judgment last?
Once ordered, a judgment is typically valid for five to 20 years, depending on your state.
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- 1. Nolo. What Is a Debtor's Examination?. Accessed Mar 23, 2026.
