Set Aside a Default Judgment: What to Do If You Missed a Claim

Have you discovered an unexpected default judgment on your credit file? A default judgment is often issued against a defendant without their knowledge, but it can be set aside. If you’ve recently found out about a default judgment you weren’t previously aware of, this article will tell you what you need to do to have it set aside and removed from your credit file.

What is a default judgment?

Court rules require a claimant to notify a defendant of any claim. However, this often doesn’t happen, which means the defendant can’t respond in time. As a result, the court issues the default judgment, a type of CCJ (County Court Judgment).

If you’ve discovered a CCJ on your credit file, it’s probably a default judgment, which means it can be set aside under certain circumstances. Unless it is set aside, your credit score will plummet, meaning you may not be able to obtain a mortgage or other credit.

Why did you not receive the claim form?

There could be several reasons why you didn’t receive the claim form.

Wrong Address

The original court papers may have been sent to the wrong address – perhaps a previous address. If this was the last address known to the claimant, the judgment will be valid unless they had reason to believe you had moved.

Registered Address for Companies

Another common situation is that the papers were sent to a company’s registered address but not forwarded to the trading address. Many companies have a registered address for purely administrative reasons. If court papers are sent to this address, they are deemed valid, even if you didn’t see them. That’s why it’s so important that companies put reliable forwarding facilities in place.

Defendant Away at the Time

It may even be that the papers were sent to the right address but arrived when the defendant was away, for example, during a holiday or a long trip abroad.

Whatever the reason for not responding to the claim, the default judgment will be valid and enforceable if it was sent to a current address, a registered address or even the last address known to the claimant.

If it’s not set aside, you will have to pay the judgment, and it will continue to affect your credit rating negatively.

How Can I Set Aside a Default Judgment?

The court rules allow the court to set aside a judgment if there is a good reason, such as not receiving the court papers. 

What Form Do I Need to File to Set Aside a Default Judgment?

To get a default judgment set aside, the first step is to file court form N244. Include in the form details such as:

• an explanation as to why you didn’t receive the court papers
• whether or not you’re likely to have a good defence to the claim
• how the default judgment has affected you. For example, the CCJ may mean you’re unable to obtain a mortgage, or it might have affected your job prospects.

Apply Promptly

Send the N244 form to the court that issued the judgment as soon as possible. One of the factors a court will consider is whether you’ve acted promptly after finding out about the CCJ. That’s why you shouldn’t delay your application.

Attend a Hearing

After you submit your application, the court file will usually be transferred to your local hearing centre. The hearing centre will let you know a hearing date when you will need to attend to present your case. To learn more about preparing for the hearing, read CCJ Removal: Step-By-Step Guide to Setting Aside a County Court Judgment.

Obtaining the Claimant’s Consent to the Default Judgment being Set Aside

If the claimant consents to the judgment being set aside, both parties can sign a court document known as a consent order. Whether or not the judgment is set aside is still at the discretion of the court but a consent order makes it much more likely. The consent order can be filed before or after the application to set aside judgment has been made. You won’t need to attend a hearing if the court is happy with the consent order.

Frequently Asked Questions

What is a default judgment?

A default judgment is a court ruling issued in favour of the claimant when the defendant fails to respond to a claim. It often happens without the defendant’s knowledge, particularly if they did not receive court papers. Read more

Can I apply to set aside a default judgment?

Yes, you can apply to set aside a default judgment if you can show that you did not receive the claim form or have a valid reason for not responding. You do this by filing court form N244. Read more

How long do I have to apply to set aside a default judgment?

You must act promptly after discovering the judgment. While there is no fixed deadline, the sooner you apply, the better your chances of success.

What happens if a default judgment is not set aside?

If a default judgment is not set aside, it will remain on your credit record and could negatively impact your ability to secure loans or mortgages. Additionally, the claimant can enforce the judgment, which may result in enforcement action. Read more

Conclusion

Understanding how to set aside a default judgment is critical if you were unaware of the court case. Acting promptly is essential, and with the proper steps, you can ensure your credit rating is repaired and move on with your financial life.

Need Help Removing a CCJ?

If you’re looking for practical, expert help with removing a County Court Judgment, we recommend CCJ Removal Services — a trusted, not-for-profit legal advice agency. Click here to jump to their free consultation form or call them on 0161 711 1455 to speak with an expert today.