A default judgment is what happens when someone is sued over a debt and doesn't respond in time — the court rules for the collector automatically. If that's already happened to you, it feels final. In important ways it is serious, but it is not always the end of the road. Here's what a judgment lets a collector do, and the options you may still have.
What the collector can do now
A judgment converts a disputed claim into a court-backed debt and, the CFPB explains, gives the collector much stronger collection tools. In most states a judgment creditor can:
- Garnish your wages — take part of each paycheck through your employer. Estimate the limit in your state.
- Levy your bank account — freeze and withdraw funds directly.
- Place a lien on real estate you own, which can attach until the property is sold or refinanced.
On top of that, the judgment amount usually keeps accruing post-judgment interest at a rate set by state law, so the balance grows over time. Judgments are also long-lived — they remain enforceable for years (the exact term varies by state) and can typically be renewed before they expire, so simply waiting it out rarely works. Garnishment itself doesn't start instantly, though — here's how soon a creditor can reach your paycheck.
When you can ask the court to undo it
You may be able to file a motion to vacate (also called "set aside") the default judgment — asking the court to cancel it and reopen the case so you can defend it. But courts grant this only for a genuine, well-supported reason, such as:
- You were never properly served and didn't actually know about the lawsuit — a common and serious problem.
- Excusable neglect or other good cause — a legitimate reason you couldn't respond, not just that you chose not to.
Two things matter most here: act fast, because courts set short deadlines to move to vacate, and be ready to show the court your reason. If the judgment is reopened, you get the chance to raise defenses you lost by default — including whether the debt is time-barred or too old to sue on. Because the standard is demanding, this is a moment where free legal aid or a self-help center is well worth contacting.
Other options after a judgment
Even if vacating isn't realistic, you still have moves:
- Settle the judgment. You can still try to negotiate a payoff or payment plan, though the collector has less reason to discount now that it can garnish or levy. Get any deal — and a "satisfaction of judgment" filing — in writing.
- Know what's protected. Certain income can't be touched. If your only income is Social Security, disability, or other protected benefits and you have few non-exempt assets, you may be effectively judgment-proof — the judgment exists, but there is nothing the collector can legally take. Each state also exempts a baseline of wages and property.
- Claim your exemptions. Even with garnishment, federal and state law shield a minimum amount of your pay and certain property; you typically have to file paperwork to claim these, so don't assume they apply automatically.
A judgment is a setback, not a life sentence. Moving quickly — to vacate if you have grounds, or to settle and protect exempt income if you don't — is what keeps it from quietly draining your paycheck for years. If you're unsure where you stand, free legal aid or a nonprofit credit counselor can help you read the judgment and choose the right next step.