What is a Default Judgment?
If you’ve been sued and are feeling overwhelmed, one term you may hear early on is “default judgment.” Understanding what a default judgment is—and why it matters—can make a huge difference in how you respond to a lawsuit.
This article breaks it down in plain language, so you know exactly what’s at stake.
What Is a Default Judgment?
A default judgment happens when a court rules against you automatically because you did not respond to a lawsuit by the required deadline.
In most civil cases, when someone files a lawsuit against you, you are served with legal papers (often called a summons and complaint). Those papers are not just informational—they require action. If you fail to respond within the time allowed by law, the court may treat your silence as an admission and enter judgment in favor of the other party.
In short:
No response = automatic loss.
Why Courts Allow Default Judgments
Courts rely on deadlines to keep cases moving. If defendants could ignore lawsuits without consequences, the system would grind to a halt. Default judgments exist to:
Encourage timely responses
Prevent unnecessary delays
Resolve cases efficiently
From the court’s perspective, if one side shows up and the other doesn’t, the case still has to move forward.
What Can Happen If You Get a Default Judgment?
A default judgment can have serious and long-lasting consequences, especially in debt and consumer cases.
1. You Automatically Lose the Case
The judge does not hear your side of the story.
You don’t get to raise defenses, challenge evidence, or negotiate terms. The court assumes the plaintiff’s claims are true.
2. The Court Can Order You to Pay Money
In many cases—especially creditor lawsuits—the judgment will state that you owe the full amount claimed, which may include:
The original debt
Interest
Late fees
Attorney’s fees
Court costs
This amount is often more than what you originally owed.
3. Wage Garnishment May Follow
Once a judgment is entered, the winning party may be able to take steps to collect the money, including:
Garnishing a portion of your paycheck
Freezing or levying bank accounts
Placing liens on property
These actions usually do not require a new lawsuit—the judgment itself gives them that power.
4. Your Credit Can Be Affected
Judgments can negatively impact your financial profile and make it harder to:
Qualify for loans
Rent housing
Refinance property
Obtain favorable interest rates
Even after the judgment is paid, the record of it may linger.
5. You Lose Leverage to Negotiate
When you respond to a lawsuit on time, you often have options—settlement discussions, payment plans, or even dismissal. Once a default judgment is entered, your leverage drops significantly.
The other side no longer needs your cooperation to collect.
6. Undoing a Default Judgment Is Difficult
In some situations, a court may allow a default judgment to be set aside—but this is not automatic.
You typically must show:
A valid legal reason for missing the deadline (such as improper service or excusable neglect), and
A legitimate defense to the lawsuit
Even then, there are strict time limits and procedural requirements.
Common Reasons People End Up With Default Judgments
Default judgments often happen not because people don’t care—but because they don’t understand the process. Common reasons include:
Assuming the lawsuit is just a “scare tactic”
Feeling intimidated or overwhelmed
Believing they owe the money and have no options
Not realizing there is a deadline
Putting the paperwork aside “for later”
Unfortunately, ignoring a lawsuit almost always makes the situation worse.
The Bottom Line
A default judgment is one of the most avoidable—but most damaging—outcomes in a civil lawsuit.
Responding on time does not mean you are admitting guilt. It simply preserves your right to be heard and protects your ability to defend yourself, negotiate, or explore your options.
If you’ve been served with a lawsuit, the most important step you can take is this:
Do not ignore it.
Understanding what a default judgment is can be the difference between maintaining control of your financial future—and losing it by default.