A default judgment in California means the court decided a debt lawsuit against you because no response was filed in time, usually within 30 days of being served. It gives the creditor powerful collection tools, but it is not always the end of the story. Depending on the facts, you may be able to set it aside, settle it or resolve it through bankruptcy.
The time limits for challenging a default are short, so do not wait for the first garnishment. Call (415) 754-0115 to schedule a free consultation with attorney Bob Somal, or send your details through our contact page.
How a default judgment happens
A creditor or debt buyer files a complaint and has you served with a summons. If no answer or other response reaches the court by the deadline, the plaintiff can ask the clerk to enter your default. Once default is entered, you generally lose the right to participate in the case, and the plaintiff can request a judgment for the amount claimed plus allowable costs and interest.
Many people never saw the papers. The summons went to an old address, was left with someone who did not pass it on, or was claimed to be served when it was not. Others received the papers but assumed a phone call to the collector was enough. Whatever the reason, how you learned about the case matters for what comes next.
What a creditor can do after the judgment
A money judgment in California can generally be enforced for ten years, and the creditor can apply to renew it before that period ends. Interest accrues on the unpaid amount at the rate set by statute. With the judgment in hand, the creditor can use several tools without filing a new lawsuit.
Common enforcement tools
- Wage garnishment: an earnings withholding order served on your employer takes part of each paycheck, within legal limits.
- Bank levy: the sheriff can freeze and take funds in your account, subject to exemptions.
- Judgment lien on real estate: recording an abstract of judgment creates a lien on property you own in that county, which can complicate a sale or refinance.
- Debtor's examination: the creditor can have you ordered into court to answer questions under oath about your income and assets.
California law protects certain property and income from these tools through exemptions. If a levy or garnishment arrives, a claim of exemption must be filed quickly, and the deadlines are measured in days.
Asking the court to set aside the default judgment
A motion to set aside (sometimes called a motion to vacate) asks the judge to cancel the default and let you respond to the lawsuit on its merits. California offers several routes, and each has its own time limit.
Mistake, inadvertence, surprise or excusable neglect
Under Code of Civil Procedure section 473(b), a court may relieve a party from a default taken through mistake, inadvertence, surprise or excusable neglect. The request must be made within a reasonable time and no later than six months after the default was entered, and it normally must include a proposed answer.
You never actually received notice
Section 473.5 applies when service did not give you actual notice in time to defend, for example when papers were served by publication or left somewhere you never saw them. It has a separate deadline that runs from the judgment or from when you were served with written notice of the default.
The judgment is void
If you were never validly served at all, the judgment may be void for lack of jurisdiction. Courts treat void judgments differently from ordinary defaults.
What makes a motion stronger
Judges look for prompt action once you learned of the case, a believable explanation, and a real defense. Defenses in debt cases can include an expired statute of limitations, a plaintiff that cannot prove it owns the debt, a wrong amount, or a debt that is not yours. Our article on what to do when sued by a creditor covers those defenses in more detail.
Settling a judgment instead of fighting it
Where there is no good ground to vacate, negotiation may still help. Judgment creditors often prefer a reliable payment over years of levies that come up empty because a debtor's income and property are largely exempt. A settlement can take the form of a reduced lump sum or a payment arrangement.
Any deal should be in writing and should require the creditor to file an acknowledgment of satisfaction of judgment once you finish paying, and to release any recorded lien. The firm's debt settlement and bankruptcy services include negotiating with creditors and collectors on behalf of individuals across Alameda and Contra Costa Counties.
Using bankruptcy after a default judgment in California
A judgment does not change the underlying nature of most consumer debts. Credit card balances, medical bills and personal loans reduced to judgment are generally dischargeable in Chapter 7 or Chapter 13, and filing triggers the automatic stay, which stops garnishments and levies while the case is pending.
Judgment liens on your home
A discharge ends your personal liability, but a recorded judgment lien on real property may survive unless it is dealt with. Bankruptcy law allows judicial liens to be avoided when they impair an exemption you are entitled to, such as California's homestead exemption. An attorney can check whether that applies to your property.
Frequently asked questions
How do I find out if I have a default judgment?
Search the civil case index of the superior court in the county where you lived, or check your credit reports and any levy notices. Your bank or employer may also receive paperwork before you do.
Can a default judgment be reversed after garnishment starts?
Possibly. Garnishment does not end your right to seek relief, but every week of delay weakens a motion to set aside, so act as soon as you learn of it.
Will paying the judgment remove it from my record?
Paying leads to a satisfaction of judgment being filed, which shows the debt is resolved. The court case itself remains a public record.
Does bankruptcy wipe out a default judgment?
For most consumer debts, yes, personal liability is discharged. Liens on real estate and certain debt types need separate attention.
A default judgment feels final, but you may have more options than you think. Call (415) 754-0115 to schedule your free consultation. Bob Somal will look at how you were served, the deadlines that apply and whether setting aside, settlement or bankruptcy makes the most sense. You can also reach the firm through the contact page.
Attorney Advertising. This article is general legal information for Bay Area residents, not legal advice, and does not create an attorney–client relationship. Every situation is different — please consult a licensed attorney about your specific circumstances.