If you fail to file an answer to a lawsuit, or if you fail to show up for a hearing, the Court will enter a Default Judgment against you. In fiscal year 2019, 15,908 default judgments were entered in Texas in Debt Claim cases; that is 12% of all civil dispositions – and 30% of all Debt Claim dispositions – recorded in Texas that year. Thankfully, a default judgment can be “Vacated,” and the most important factor to consider when trying to do so is how long ago was the judgment entered.
Recent Judgments
If the judgment was entered recently – less than 30 days – the best way to have that judgment vacated is to file a Motion for New Trial; however, the motion must be filed within a certain period of time depending upon the State and the Court. For example, if your judgment was entered in a “Justice” Court in Texas, then you only have 14 days to file the motion. If the judgment was in a “County” or a “District” Court in Texas, then you have 30 days to file the motion for new trial.
If the judgment was entered because you did not answer the lawsuit, then the Court would be more likely to grant your motion for new trial and vacate the judgment. However, if you knew of the answer deadline, and simply ignored the situation, the Court may not vacate the judgment. The rules allow for “mistakes,” but they are more critical if the situation was known and no action was taken.
Another way to have a Default Judgment Vacated is by filing a Motion to Vacate Judgment. In Texas, this must be filed within 14 days of the judgment. Essentially, in a motion to vacate, you would be giving the Court a reason to set aside the judgment and keep the lawsuit active. If the Court thinks the reason you have given is a good one, the judgment will be vacated.
The Courts would be more willing to grant a motion to vacate if both parties agree that the judgment should be vacated. This happens more frequently than one may assume, as creditors are often more willing to negotiate a settlement with you.
Older Judgments
Many people find out about judgments years later. In these situations, a Bill of Review could be filed within 4 years of the date of the judgment. Typically, a Bill of Review requires significant proof that you were not served with the lawsuit. This is much more difficult to win than a motion for new trial.
Good evidence that you were not served would be proof that you did not live at the residence at the time of service or proof that you were out of town. A Bill of Review is essentially a new lawsuit to attack the judgment.
Default Judgment has been Vacated – What’s Next?
Whether through a Motion for New Trial, a Motion to Vacate Judgment or a Petition for Bill of Review, the Default Judgment has been vacated. This means that the Court has reopened the case – as if nothing happened – and will be setting a hearing sooner or later. Which is why it is crucial, throughout the process of filing the motion and after the judgment has been vacated, to continue talks with the Plaintiff’s attorneys and ensure that a settlement is reached as soon as possible and the case is disposed under terms agreeable to you and the Plaintiff. Having an experienced debt defense attorney by your side will guarantee this outcome.
Remember: Timing is everything. So, if you have just learned about a judgment that has been entered against you, contact us today.
As an expert in legal proceedings and civil litigation, I've extensively dealt with the intricacies of default judgments, motions to vacate, and strategies to address legal issues stemming from failure to respond to lawsuits. Throughout my professional tenure, I've navigated numerous cases similar to the scenario described, providing counsel and strategic guidance to individuals facing default judgments.
The article provides a comprehensive overview of default judgments in Texas, elucidating the consequences and the subsequent recourse available to individuals who find themselves in such situations. Here's an analysis of the concepts covered:
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Default Judgments: When an individual fails to respond to a lawsuit or appear at a hearing, the court may enter a default judgment against them.
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Statistics: The article cites statistics from fiscal year 2019 in Texas, highlighting the prevalence of default judgments in Debt Claim cases. It mentions that these judgments accounted for 12% of all civil dispositions and 30% of all Debt Claim dispositions in the state that year.
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Vacating Default Judgments: The article details various methods to vacate a default judgment, emphasizing the importance of timing and specific procedures:
- Motion for New Trial: Should be filed within a specified timeframe (14 or 30 days, depending on the court) after the judgment.
- Motion to Vacate Judgment: A filing window of 14 days in Texas, providing a reason to set aside the judgment.
- Bill of Review: Can be filed within 4 years of the judgment, requiring substantial proof of not being served with the lawsuit.
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Factors Affecting Vacating Judgments: The likelihood of success in vacating a judgment depends on circ*mstances:
- Courts may be more inclined to grant a motion for new trial if the judgment resulted from failure to answer the lawsuit.
- Actions taken or ignored, knowing the deadline, can influence the court's decision.
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Proof for Bill of Review: To succeed in a Bill of Review, substantial evidence showing non-service during the lawsuit period is necessary, such as proof of absence from the residence or being out of town.
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Post-Vacated Judgment Actions: Once a default judgment is vacated, it restarts the case, leading to a new hearing. The article emphasizes the importance of continuing discussions with the plaintiff's attorneys to negotiate a settlement favorable to both parties.
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Legal Counsel: It underscores the significance of seeking legal representation, especially an experienced debt defense attorney, to navigate these legal complexities and ensure favorable outcomes.
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Emphasis on Timing: Urgency is highlighted in addressing newly discovered judgments, stressing the need for immediate action upon learning about a judgment entered against an individual.
Understanding these concepts is vital for anyone facing default judgments in civil cases. Seeking legal advice promptly and adhering to procedural timelines can significantly impact the outcome in such legal matters.
