Understanding Default Judgments and How To Challenge Them
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If you don't respond to a lawsuit by the deadline, the person or company suing you can ask the court for something called a "default judgment." This means the court automatically decides in favor of the creditor because you didn't respond.
A default judgment can happen because:
- You chose not to respond to the lawsuit
- You never received notice that the lawsuit had been filed
- You missed the deadline to respond for some other reason
What Happens After a Default Judgment?
Once a creditor has a default judgment against you, they have the legal right to collect the money they claim you owe, even if the amount is incorrect or the debt isn't valid.
They can take actions like:
- Taking money from your paycheck
- Freezing your bank account
- Going after your property
A judgment can also appear on your credit report, making it harder to get loans, housing, or even employment. Interest may continue to be added to the debt, increasing what you have to pay over time.
What To Do if You Didn’t Know About the Lawsuit
Finding out that there's a court decision against you that you didn't know about can be shocking. Many people first learn about these judgments when someone begins taking money from their paycheck.
If you didn't know about the lawsuit or judgment, it could be because:
- The legal paperwork was sent to the wrong address or never delivered
- You didn't realize you had to respond to the paperwork
- Life circumstances, such as moving or illness, caused you to miss deadlines
How To Challenge a Default Judgment
If you discover a default judgment against you, especially one you weren't aware of, here are steps you can take:
Ask for proof of service
The person or company that filed the lawsuit must prove to the court that they properly notified you about the lawsuit. This proof is filed with the court and is called "proof of service," "affidavit of service," or "certificate of service."
You should:
- Contact the person or company that sued you and ask for a copy of this document and a copy of the complaint
- Check that this paperwork shows when, where, and how they "served" you—whether in person, by mail, or through another method
Check court records
If you cannot get information from the creditor:
- Contact the court listed on the judgment paperwork
- Ask for copies of the "proof of service," "summons," “complaint” and "judgment"
Review these documents carefully to check all of the details, including:
- In the proof of service: when, where, and how the person who is suing you supposedly “served” you with the necessary paperwork
- In the complaint: how much they said you owed and why,
- In the judgment: when the court decided the case, and how much you owe.
Consider asking the court to cancel the judgment
You may be able to ask the court to "set aside" (cancel) the default judgment if:
- You were never properly served with the summons and complaint, or
- You have a possible defense against the debt AND can show that you didn't respond because of "surprise, mistake, inadvertence, or excusable neglect" (these are legal terms that an attorney can help you understand)
To request this, you'll need to file a "motion to set aside the judgment" with the court.
Consult an attorney
An attorney can help you:
- Determine if you can ask the court to cancel the judgment
- File the necessary paperwork or help you file it yourself
- Review other aspects of the case, such as whether the debt amount was incorrect
Act quickly
In Oregon, you usually must ask to cancel a default judgment within one year of learning about it. In special circumstances, you might be able to challenge it even after this deadline. Talking to an attorney will help you know whether this applies to your situation.
Include any evidence showing why the judgment should be canceled, such as proof that you weren't properly notified or that the debt isn't valid.