{"id":183371,"date":"2023-10-13T01:45:01","date_gmt":"2023-10-13T00:45:01","guid":{"rendered":"https:\/\/legalvision.co.uk\/?p=183371"},"modified":"2024-07-23T03:06:35","modified_gmt":"2024-07-23T02:06:35","slug":"default-judgment","status":"publish","type":"post","link":"https:\/\/legalvision.co.uk\/disputes-litigation\/default-judgment\/","title":{"rendered":"What is a Default Judgment?"},"content":{"rendered":"\n<p>If your business is embroiled in a <a href=\"https:\/\/legalvision.co.uk\/disputes-litigation\/my-business-is-in-a-dispute\/\">commercial dispute<\/a>, the court may make a \u2018default\u2019 judgment. A default judgment is when the courts make an automatic decision about a claim without the case going to trial. If you do not acknowledge a service of claim or fail to file a defence in time, your business could face a default judgment. As a result, your business can be liable for the debt in issue without the claim going to trial. This article will explain a default judgment and what it means for the party defending a claim.&nbsp;&nbsp;<\/p>\n\n\n\n<h2 class=\"wp-block-heading\">When Can a Default Judgment Arise?&nbsp;<\/h2>\n\n\n\n<p>Default judgment is when the courts make an automatic decision about a claim because the party defending a claim has failed to file:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>an acknowledgement of service of the claim; or&nbsp;<\/li>\n\n\n\n<li>a defence of the claim within the timeframes the Civil Procedure Rules set out.&nbsp;<\/li>\n<\/ul>\n\n\n\n<div  class=\"box box--icon box--info\">\n    <p>Default judgments can be made for various claims. However, money claims are the most typical type of claim that results in default judgment. Most commonly, claimants issuing proceedings in the County Court obtain default judgment for debt claims.<\/p>\n<\/div>\n\n\n\n<p>Usually, a court can make a default judgment without a hearing or further notice given to the defendant. As part of the process, the court will not assess the claim nor its merits. A default judgment will simply be made because the defendant failed to respond to the claim correctly.&nbsp;<\/p>\n\n\n\n<p>Default judgments can arise in many contexts, such as where:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>defendants have no knowledge of the claim, such as when it was sent to the wrong address;&nbsp;<\/li>\n\n\n\n<li>defendants fail to respond to claims because they are too busy;<\/li>\n\n\n\n<li>defendants fail to understand what they need to do in response to a claim; and<\/li>\n\n\n\n<li>there are administrative errors in the court process.&nbsp;<\/li>\n<\/ul>\n\n\n\n<div  class=\"box box--icon box--info\">\n    <p class=\"p1\">To avoid lengthy and expensive disputes, it&#8217;s important to have up-to-date legal contracts in place. Our contract lawyers can review and update your contracts to ensure your business is protected. Book a complimentary consultation today by filling out the form on this page.<\/p>\n<\/div>\n\n\n\n<h2 class=\"wp-block-heading\">What Can Defendants Do About Default Judgments?<\/h2>\n\n\n\n<p>Being the recipient of a default judgment can be extremely worrying. If you receive one, you must comply with it. Depending on the judgment, you will likely need to:<\/p>\n\n\n\n<ol class=\"wp-block-list\">\n<li>make payment if the judgment requires you to settle a debt; or&nbsp;<\/li>\n\n\n\n<li>apply to get the judgment \u2018set aside\u2019.<\/li>\n<\/ol>\n\n\n\n<h3 class=\"wp-block-heading\">1. Making Payment&nbsp;<\/h3>\n\n\n\n<p>If you agree to pay the debt but cannot afford to, you may be able to ask to vary the terms of the judgment. Once default judgment has been made, the party who issued the claim against you will have various options to enforce it.&nbsp;<\/p>\n\n\n\n<p>For example, they could instruct bailiffs to help <a href=\"https:\/\/legalvision.co.uk\/disputes-litigation\/issues-with-debtors\/\">recover the debt<\/a> or even <a href=\"https:\/\/legalvision.co.uk\/corporations\/company-trade-whilst-insolvent\/\">initiate insolvency proceedings<\/a> against you. As a result, the court&#8217;s decision could severely affect your credit score.&nbsp;<\/p>\n\n\n\n<h3 class=\"wp-block-heading\">2. Set Aside the Default Judgment&nbsp;<\/h3>\n\n\n\n<p>You can make an application to set it aside. In simple terms, setting aside means cancelling the judgment made against you. The courts have the power to set aside default judgments in certain circumstances if there is a good reason to do so. For example, default judgments could be set aside if you can show that:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>you do not owe the money; or<\/li>\n\n\n\n<li>there was a defect in the service of the claim made.<\/li>\n<\/ul>\n\n\n\n<div  class=\"box box--icon box--info\">\n    <p>Setting aside a judgment will practically mean that the proceedings reverse to the claim stage before any action is taken against you. As part of this process, a judge will review the case and its circumstances. For example, a judge will look at how quickly you acted to respond to the claim.<\/p>\n<\/div>\n\n\n\n<p>Applying to set aside the court&#8217;s decision can also be extremely complicated. Applications should be made urgently. As part of the process, you will need to make an application and prepare supporting evidence. You or your legal representatives will also need to attend court as part of the process.&nbsp;<\/p>\n\n\n\n<p>If possible and within your budget, you should take urgent legal advice on default judgments. Legal advice from the outset can help you better understand your options.&nbsp;<\/p>\n\n\n    <div class=\"my-7 lg:my-10 border-y-2 border-gray-100 py-7 lg:py-10 flex flex-col sm:flex-row items-start gap-10\">\n                    <img decoding=\"async\" class=\"w-52 mx-auto my-0! rounded\" src=\"https:\/\/img.legalvision.com.au\/wp-content\/uploads\/sites\/4\/2023\/09\/27074704\/guide-to-resolve-uk-image-1.jpg\" alt=\"Front page of publication\"\n                 loading=\"lazy\" width=\"208\" height=\"298\">\n                <section>\n            <div class=\"text-2xl font-bold\">Guide to Resolving UK Business Disputes<\/div>\n            <div class=\"body-text\">\n                <p>This guide outlines how to resolve commercial disputes.<\/p>\n            <\/div>\n            \n\n<a href=\"https:\/\/go.legalvision.com.au\/guide-resolving-uk-business-disputes.html\" class=\" block px-5 py-3.5 max-w-fit bg-orange button__hover transition rounded text-white font-bold text-lg 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Default judgments are extremely serious, and defendants must act fast when it is made against them. There are limited options for resolving default judgments, such as applying to set it aside. However, applying to set aside a default judgment is very challenging. If you receive a default judgment against you or your business, you should take immediate action. Given the serious implications, you should seek legal support if you need help understanding the procedures involved.&nbsp;<\/p>\n\n\n\n<p>If you need legal advice regarding a default judgment, our experienced <a href=\"https:\/\/legalvision.co.uk\/disputes-lawyers-lp\/\">disputes lawyers<\/a> can assist as part of our LegalVision membership. For a low monthly fee, you will have unlimited access to lawyers to answer your questions and draft and review your documents. Call us today on <a href=\"tel:+448081968584\" class=\"AVANSERnumber dynamic-number\">0808 196 8584<\/a> or visit our <a href=\"https:\/\/legalvision.co.uk\/membership\/\">membership page<\/a>.<\/p>\n<div class=\"not-prose m-feedback-prompt\">\n    <!-- Thumbs up\/down bar -->\n    <div class=\"m-feedback-prompt__main\">\n        <div class=\"m-feedback-prompt__title\">Was this article helpful?<\/div>\n        <div>\n            <!--span class=\"m-feedback-prompt__button--text\">Thanks!<\/span-->\n            <button type=\"button\" class=\"m-feedback-prompt__button m-feedback-prompt__button--yes\"\n                    data-analytics-link=\"feedback-prompt:yes\" aria-label=\"Agree\">\n                <i class=\"fa-regular fa-thumbs-up fa-3x\"><\/i>\n            <\/button>\n            <button type=\"button\" class=\"m-feedback-prompt__button m-feedback-prompt__button--no\"\n                    data-analytics-link=\"feedback-prompt:no\" aria-label=\"Disagree\">\n                <i class=\"fa-regular fa-thumbs-down fa-3x\"><\/i>\n            <\/button>\n        <\/div>\n    <\/div>\n\n    <!-- Feedback form -->\n    <div class=\"m-feedback-prompt__form\">\n        <div class=\"m-feedback-prompt__form--thanks \">\n            <div>Thanks!<\/div>\n            <p>\n                We appreciate your feedback \u2013 your submission has been successfully received.            <\/p>\n        <\/div>\n        <form id=\"contact-form\" class=\"m-feedback-prompt__form--form\" action=\"\" method=\"post\">\n            <input type=\"hidden\" id=\"authenticity_token\" name=\"authenticity_token\" value=\"9eb4f72322\" \/><input type=\"hidden\" name=\"_wp_http_referer\" value=\"\/api\/wp\/v2\/posts\/183371\" \/>            <input value=\"https:\/\/legalvision.co.uk\/disputes-litigation\/default-judgment\/\" type=\"hidden\" name=\"currenturl\"\n                   id=\"currenturl\">\n            <input value=\"What is a Default Judgment?\" type=\"hidden\" name=\"currenttitle\"\n                   id=\"currenttitle\">\n            <label>\n                <!-- display on thumbs-up -->\n                <span class=\"m-feedback-prompt__feedback m-feedback-prompt__feedback--yes\">\n                    Can you tell us <span class=\"font-semibold\">why<\/span> you found it helpful?\n                <\/span>\n\n                <!-- display on thumbs-down -->\n                <span class=\"m-feedback-prompt__feedback m-feedback-prompt__feedback--no text-lg\">\n                    How can we better improve this article?\n                <\/span>\n                <textarea name=\"feedbackmessage\" id=\"feedbackmessage\" required><\/textarea>\n            <\/label>\n\n            <div class=\"m-feedback-prompt__form--error\" id=\"form-submit-error\"><\/div>\n            <button id=\"submit-contact-form-button\" type=\"submit\" name=\"commit\" class=\"m-feedback-prompt__form--submit\"\n                    data-analytics-link=\"feedback-prompt:submit\">\n                Submit            <\/button>\n        <\/form>\n    <\/div>\n<\/div>\n","protected":false},"excerpt":{"rendered":"<p>If your business is embroiled in a commercial dispute, the court may make a \u2018default\u2019 judgment. A default judgment is when the courts make an automatic decision about a claim without the case going to trial. If you do not acknowledge a service of claim or fail to file a defence in time, your business<a href=\"https:\/\/legalvision.co.uk\/disputes-litigation\/default-judgment\/\">Continue reading <span class=\"sr-only\">&#8220;What is a Default Judgment?&#8221;<\/span><\/a><\/p>\n","protected":false},"author":13436,"featured_media":3229,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"_relevanssi_hide_post":"","_relevanssi_hide_content":"","_relevanssi_pin_for_all":"","_relevanssi_pin_keywords":"","_relevanssi_unpin_keywords":"","_relevanssi_related_keywords":"","_relevanssi_related_include_ids":"","_relevanssi_related_exclude_ids":"","_relevanssi_related_no_append":"","_relevanssi_related_not_related":"","_relevanssi_related_posts":"179487,180919,178448,182276,175626,1386","_relevanssi_noindex_reason":"","editor_notices":[],"footnotes":""},"categories":[26],"tags":[43,241,1521],"class_list":["post-183371","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-disputes-litigation","tag-court-proceedings","tag-debt-recovery","tag-default-judgment"],"acf":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v27.1.1 - https:\/\/yoast.com\/product\/yoast-seo-wordpress\/ -->\n<title>What is a Default Judgment? 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