If a debt collector sues you and you don’t respond to the summons in time or appear in court, you may have a default judgment issued against you from a debt collection lawsuit. The good news is that it’s possible to have this type of judgment vacated. It doesn’t necessarily mean you won’t have to repay your debt anymore, but it will give you the opportunity to defend yourself in court and possibly achieve a better result.
What Does It Mean to Vacate a Judgment?
To vacate a judgment is to have it canceled or removed. Vacating the debt collection judgment doesn’t throw out the lawsuit itself, but it means you’ll have the opportunity to present your side of the case rather than being stuck with a default judgment.
There are two key reasons you may be able to vacate a judgment:
- Lack of personal jurisdiction: There’s an appropriate legal process by which you should be served with the legal complaint and summons. If you were improperly served, you can request to have the judgment vacated based on a lack of personal jurisdiction.
- Excusable default: If you have a good reason for not responding to the summons, you have an excusable default. Reasons that may be considered excusable include not receiving your summons, being out of town, ill, incarcerated, or unable to get off work, or that you have another good reason for not responding.
For example, suppose you’re sued by a debt collector for your $10,000 in credit card debt. You never receive the summons, so the judge in the case issues a default judgment requiring you to pay the full $10,000 plus interest and late fees. You may be able to file a motion to vacate the default judgment if you have a very good reason for this to happen. The lawsuit will essentially go back to square one, allowing you to appear in court and argue your case before the judge.
How to File a Motion to Vacate a Judgment
If you’ve had a default judgment issued against you and believe it should be thrown out, you can file a motion to vacate the judgment. Here’s what you need to know.
What to Include in a Motion to Vacate Judgment
Depending on where you live, your state or county may provide a form to file a motion to vacate judgment. When completing this form, you’ll likely need to include information about the case, including the name of the plaintiff, the case number, and the court that issued the judgment (likely small claims court).
When filing your motion, you should be prepared to explain your reason. You should indicate whether you’re filing the motion due to a lack of personal jurisdiction or an excusable default. If it’s because of an excusable default, which is the most common reason, explain the reason you couldn’t respond to the summons or appear in court.
Once you’ve completed the necessary court form, you can file it directly with the court clerk and pay any necessary filing fees. You’ll also have to serve the plaintiff with a copy of the motion. Make a copy of any documents you send the plaintiff, as well as proof that you sent them, which you can get with a return receipt of certified mail or a certificate of mailing.
When to File a Motion to Vacate Judgment
If you’ve had a default judgment filed against you for your debt, it’s important to file a motion to vacation within a reasonable time. Some states require that you file the motion within a certain time limit — often 30 days — for your request to be granted.
Should You Ever Avoid Filing Motion to Vacate?
Filing a motion to vacate isn’t always the right choice after a default judgment. First, you shouldn’t file a motion to vacate unless you can show there’s a good reason you didn’t answer the summons or appear in court. If you received the summons and simply chose not to attend, a judge is unlikely to grant your motion.
Another reason not to file a default judgment is if the deadline for filing has already passed. You can look at the specific timeline in your state, but you often must file within 30 days to have your motion approved.
What Happens After Filing a Motion to Vacate?
Once you file your motion to vacate, you’ll have to wait for the court to respond. If the court grants your motion, you’ll be assigned a new court date where you and the plaintiff will both have the opportunity to argue your case. You should bring any supporting documents that may help in the lawsuit. It may also be a good idea to hire a debt relief attorney to represent you.
It’s critical that you attend your rescheduled court date. By having your judgment vacated, you’ve been granted a second chance to defend yourself in court. If you don’t appear for your new trial, you can assume the court won’t grant you another chance.
Legal Implications of a Vacated Judgment
When a judgment is vacated, it’s as if it never happened in the first place. While the lawsuit is still active, the judgment itself has been thrown out. For both the plaintiff and the defendant, this means starting from square one. The plaintiff will still have the opportunity to present their case in court and seek a judgment, while the defendant will have the chance to offer up a defense.
Because a default judgment has no binding authority once it’s been vacated, it has no effect or legal precedent in the case. This means the plaintiff can’t use the default judgment as a reason for another judgment in their favor when arguing the case in court.
It’s entirely possible that you could lose the case and have a judgment issued against you, but it will be entirely separate from the original default judgment.
Possible Legal Actions After a Judgment Is Vacated
Once a default judgment is vacated, a couple of different things could happen. First, in an effort to avoid a trial, you and the plaintiff could try to negotiate a settlement. In the case of unpaid debt, a settlement would likely require you to repay some of your debt but a reduced amount.
For example, if you owe $10,000 in credit card debt, you and your creditor may settle for 50% of the amount owed, meaning you’d have to pay $5,000. Yes, you still have to pay something. But you also avoid the possibility of a judge ordering you to pay the full $10,000.
The other option is that if you and the debt collector can’t (or don’t want to) negotiate a settlement, you can appear in court. In that case, both parties will have the opportunity to present their arguments. At the conclusion of the trial, you’ll get the judge’s decision.
Get Help Having Your Judgment Vacated
If you’ve had a default judgment issued against you or have managed to get a default judgment vacated, you may need legal advice or help from a debt relief attorney. An experienced debt help lawyer can help you navigate the legal process, including filing your motion to vacate judgment, negotiating with your creditors, and presenting your case in court.
Tayne Law Group has years of experience helping consumers who are facing debt collection lawsuits, and we may be able to help you through the process. If you’re facing a lawsuit for your debt, contact us to set up a free phone consultation by calling (866) 890-7337 or filling out our short contact form. We’ll respond as soon as possible. All conversations are confidential, and we never share or sell your information.
