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A default judgment occurs when the defendant in a legal case fails to respond to a court summons or does not appear in court. If this occurs, a court may rule in favor of the plaintiff by default.
A judge can set aside a default judgment for the following reasons, among others: Mistake, inadvertence, surprise, or excusable neglect of the party who failed to defend himself in the case. Fraud, misrepresentation, or other misconduct by the party who filed the case.
In effect, you're found guilty because you never entered a defense. Default judgments are sometimes called automatic judgments because of how fast they can happen. Next up could be wage garnishment or a bank account levy, which allows a creditor to remove money from your bank accounts to repay the debt.
Entry of default refers to the process where the person making a claim in a case makes a request before a court of law stating that the party against whom they have made a claim have failed to furnish any meaningful response to the claimant's pleadings within the time allowed for that.
The danger of allowing a default judgment against you is once this occurs the debt buyer can garnish your wages and your bank accounts.If you don't submit a written answer to the lawsuit the court can enter a default judgment giving the debt buyer everything they are asking for.
Your judgment might be for money, repossession, eviction, foreclosure, or any number of things. In any case, your rights at this point would be the same as if you had gone to trial and won. A Motion to Vacate is one way by which a defendant can avoid enforcement of a default judgment.
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.
A simple default doesn't mean you legally owe a certain amount of money. A default judgment identifies the amount you owe the plaintiff. You don't want this to happen because a default judgment makes you a judgment debtor. Plaintiff may use all sorts of legal procedures to legally take your money and property.