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First, you can ask the court to set aside the default judgment and give you an opportunity to contest it. Next, you can settle the debt with the debt buyer for an amount less than what the default judgment is for. And finally you can eliminate the default judgment completely by filing for bankruptcy.
Grounds for granting a motion for default judgment in Texas exist if a defendant fails to respond to the lawsuit and make an appearance in the matter. Plaintiffs must make a request before the court will grant a motion for default judgment in Texas. Most importantly, a default judgment is binding on both parties.
If granted, the default judgment will be vacated and a new trial will be scheduled on the matter. In a county or district court in Texas, the deadline for a request for a new trial is 30 days from entry of the default judgment.
A motion for default is made when a defendant fails to file a timely answer to a complaint/petition.If you were not served with the original petition/complaint, you can always file a petition to reopen the case.
Except as provided in (1), a plaintiff who seeks a default judgment against a defendant must request a hearing, orally or in writing. The plaintiff must appear at the hearing and provide evidence of its damages. If the plaintiff proves its damages, the judge must render judgment for the plaintiff in the amount proven.
A Texas judgment is valid for ten years from the date it's signed by the judge. After the expiration of ten years the judgment is dormant for two years. During that two year period of dormancy the judgment cannot be enforced.
In most cases, however, default judgment can be obtained through an administrative process, simply by filing a request with the court, and even where an application is required it can in some circumstances be made without notice to the defendant.
First, you can ask the court to set aside the default judgment and give you an opportunity to contest it. Next, you can settle the debt with the debt buyer for an amount less than what the default judgment is for. And finally you can eliminate the default judgment completely by filing for bankruptcy.
Accept the judgment. Settle the judgment for less. Challenge the judgment. Pursue debt relief.