Default Judgments in New York — How to Stop One Before It's Too Late

What Is a Default Judgment?

A default judgment is a court ruling entered against a defendant who fails to respond to a lawsuit within the required time period. In New York civil court, if you do not file a written answer before the deadline, the plaintiff's attorney submits a motion for default judgment. The court clerk or judge reviews the motion and typically grants it without any hearing.

What Can a Creditor Do With a Default Judgment?

Once a default judgment is entered, the creditor becomes a judgment creditor with powerful collection tools. They can serve a restraining notice on your bank, freezing all funds up to the judgment amount. They can serve an income execution on your employer, directing them to withhold up to 10% of your gross wages each pay period. They can place a lien on any real estate you own in New York. The judgment also appears on your credit report and can damage your credit score for years.

The Deadline to Respond

If you were personally served, you have 20 days from the date of service to file your answer. If served by substituted service — left with a person at your home or business and then mailed — you have 30 days. Check your summons carefully for the method of service and count the days from the date you were served, not the date you found the papers.

How to Vacate a Default Judgment

If a default judgment has already been entered against you, you may be able to file a motion to vacate. To succeed, you generally must show a reasonable excuse for the default (such as improper service, illness, or not receiving the papers) and a meritorious defense to the underlying claim. Time limits apply — act as quickly as possible.

Exempt Income That Cannot Be Taken

Even with a judgment, certain income is completely exempt from collection in New York: Social Security benefits, SSI, disability benefits, unemployment insurance, veterans benefits, workers compensation, child support received, and public assistance. If your only income is exempt, you can file a claim to have restrained funds released.