A default judgment can feel like the end of the road for a defendant who never had the chance to appear in court. In Texas, default judgments are entered when one party fails to respond or participate in a lawsuit, allowing the other side to win automatically. For business owners, that can mean losing money, property, or rights without ever being heard.
Fortunately, Texas law recognizes that mistakes and misunderstandings happen. Courts have the authority to set aside a default judgment and reopen the case when fairness requires it. This process is known as filing a motion to set aside default judgment. It gives the defendant another opportunity to defend the claim and ensures that justice is based on facts, not paperwork errors.
What Is a Default Judgment
A default judgment is a court order entered against a party who fails to answer a lawsuit or appear as required. It has the same legal force as a judgment after trial. Once entered, it can result in wage garnishment, property liens, or other enforcement actions.
Default judgments often arise in civil disputes such as:
- Debt collection claims
- Breach of contract cases
- Business or partnership disputes
- Personal injury lawsuits
For plaintiffs, default judgments resolve a case quickly. For defendants, they can have serious financial and reputational consequences. Sometimes a defendant never knew about the lawsuit because of improper service. Other times, a deadline was missed due to accident or oversight. In either case, Texas courts provide a way to correct the record and restore fairness.
What Happens After a Default Judgment Is Issued
Once a default judgment is entered, the clock starts running. The judgment becomes final after 30 days unless the defendant takes legal action to challenge it. During that time, the plaintiff can begin enforcement efforts such as garnishing bank accounts or placing liens on real property.
A default judgment also accrues post-judgment interest, meaning the amount owed grows over time. It may affect credit, business operations, or even professional licensing. These consequences make it essential to respond quickly once you become aware of the judgment. Acting promptly gives your attorney more options to reopen the case and protect your rights before enforcement goes further.
How to Respond to a Motion for Default Judgment
If you receive notice that the opposing party has filed a motion for default judgment but the court has not yet ruled, there is still time to act. The first step is to file an answer and appear at any scheduled hearings. Courts in Texas prefer to decide cases on their merits rather than through procedural technicalities.
Your lawyer can explain why the failure to respond was not intentional or due to conscious indifference. Common explanations include:
- The lawsuit was sent to the wrong address or never received.
- A clerical or administrative error caused the delay.
- A misunderstanding occurred regarding deadlines or legal representation.
By filing a proper response and appearing before the judge, you demonstrate good faith and increase the likelihood that the court will deny or delay the default judgment while your defense is reviewed.
What Is a Motion to Set Aside Default Judgment?
A motion to set aside default judgment asks the court to vacate a judgment that was entered without the defendant’s participation. When granted, the case reopens and proceeds as though the default never occurred. This gives both parties the opportunity to present their evidence and arguments.
Texas law provides several procedural paths depending on timing and circumstances:
- Within 30 days: File a motion for new trial under Rule 329b of the Texas Rules of Civil Procedure.
- Within six months: If the judgment is final, you may file an equitable bill of review.
- At any time: If you were never properly served, you may challenge the judgment as void under Rule 123.
The goal of the motion is not to win the case outright but to persuade the court that the judgment should be reopened so the facts can be properly heard.
Legal Grounds for Setting Aside a Default Judgment
To succeed, the defendant must show valid legal reasons supported by evidence. Common grounds include:
1. Lack of Proper Service
A judgment entered without proper service is void. Texas courts require strict compliance with service rules. If you never received notice of the lawsuit or the service was defective, the court can set the judgment aside.
2. The Craddock Test
In most cases, courts apply the Craddock v. Sunshine Bus Lines, Inc. standard. To meet it, the defendant must show that:
- The failure to respond was not intentional or due to conscious indifference.
- A meritorious defense exists to the plaintiff’s claim.
- Setting aside the judgment will not cause undue delay or prejudice to the plaintiff.
3. Fraud, Mistake, or Misrepresentation
If the judgment was obtained through fraud or misrepresentation—for example, falsifying documents or misleading the court—Texas law allows it to be set aside.
4. Newly Discovered Evidence
If crucial evidence emerges after judgment that could not have been discovered earlier, the court may reopen the case.
Each of these grounds requires detailed factual support and timely filing. An attorney can help organize evidence, draft the motion, and present your argument to the judge.
Why Acting Quickly Matters
Time is the most important factor in default judgment cases. The longer you wait, the fewer remedies remain available. Once the 30-day window closes, the case becomes significantly harder to reopen. After six months, you may be limited to a bill of review, which has stricter requirements and higher burdens of proof.
Acting quickly not only preserves your procedural rights but also demonstrates to the court that you take the matter seriously. Swift action can stop garnishments, prevent property liens, and limit damage to your business or credit.
The Bottom Line
A motion to set aside default judgment is your chance to correct an unfair outcome and ensure that your case is heard on its merits. Whether the problem stems from improper service, administrative error, or a missed deadline, Texas law provides ways to seek relief—but time is critical.
If you or your business is facing a default judgment, contact Roquemore Skierski today. Our attorneys provide clear guidance, efficient representation, and practical strategies to restore your standing before the court. Call 972-325-6591 to schedule a consultation and take the first step toward protecting your rights.
