If a default judgment has been entered against you in Arizona, your main remedy is a Motion to Vacate under Rule 60(b) of the Arizona Rules of Civil Procedure, and the strongest version of that motion argues the judgment is void because you were never properly served. If you were served but missed the deadline, you can still ask the court to set the judgment aside on grounds like excusable neglect, but you have to move quickly, show a real defense to the underlying claim, and in most cases file within six months. If vacating is not realistic, Arizona law shields a meaningful portion of your wages and bank funds from collection and leaves room to negotiate a payoff for less than the full balance.
Everything below assumes a civil money judgment entered in an Arizona court. Act on the shortest clock you see; delay is what loses these cases.
What Just Happened
When a defendant is properly served with a lawsuit and does not file an answer or other response in time, the court treats the plaintiff’s factual allegations as admitted. The plaintiff can then obtain judgment without ever proving those facts at trial. The resulting order carries the same weight as any judgment entered after a full hearing.1New York Codes, Rules and Regulations. Arizona Justice Court Rules of Civil Procedure – Rule 140 – Entry of Default Judgment
If the lawsuit asked for a specific dollar amount calculable from the complaint, the court can enter judgment for that amount on paper. If damages are less certain, the court holds a hearing where the plaintiff presents evidence while you, still in default, have no say. The plaintiff must give you written notice at least three days before any such hearing.
If You Have Not Missed the Deadline Yet
A defendant personally served inside Arizona has 20 days from the date of service to file an answer or other responsive pleading.2New York Codes, Rules and Regulations. Arizona Rules of Civil Procedure – Rule 12 – Time to File and Serve a Responsive Pleading If you waived formal service, you get 60 days from the date the waiver request was sent, or 90 days if you were outside the United States when it was sent. Service by other methods, including service outside Arizona, can carry different clocks, so pull the proof of service from the court file and read it.
Filing an answer or a motion to dismiss is the only thing that stops a default from being entered. If you need more time, ask the plaintiff’s attorney in writing for an extension, or file a motion asking the court for one. There is also a built-in grace window: after the plaintiff applies for entry of default, the default does not take effect for 10 business days, giving you one last chance to file a late response before it becomes official.
Vacating the Judgment
Once a default judgment is on the books, the way to attack it is a Motion to Vacate under Rule 60(b). The court has discretion to grant relief, and Arizona courts look for three things together.3New York Codes, Rules and Regulations. Arizona Rules of Civil Procedure – Rule 60 – Relief from Judgment or Order
A Qualifying Ground Under Rule 60(b)
The grounds that come up most often in default cases are:
- Mistake, inadvertence, surprise, or excusable neglect. A hospitalization is persuasive. Being too busy or deciding to ignore the papers rarely is.
- The judgment is void, usually because service was defective and the court never had authority over you. This is the strongest ground, because a void judgment has to be set aside.
- Fraud or misrepresentation by the plaintiff in obtaining the judgment.
- Any other reason justifying relief, which courts apply sparingly and only in extraordinary circumstances.
A Meritorious Defense
You cannot just say you missed the deadline. You have to show the judge you have a real argument on the merits that could change the outcome if the case were reopened. In practice, that means attaching a proposed answer to your motion. Filing without one signals you are not serious about defending, and judges notice.
Prompt Action, Inside the Time Limits
Motions based on mistake, inadvertence, surprise, or excusable neglect must be filed within a reasonable time and no more than six months after entry of judgment. The same six-month cap applies to motions based on newly discovered evidence or fraud. For a void judgment, there is no six-month cap, but you still have to move within a reasonable time.
One warning: filing a Rule 60(b) motion does not automatically stop collection. The judgment stays enforceable while the motion is pending unless you separately ask for and get a stay.
Why Defective Service Is Your Best Argument
A default judgment is only valid if the defendant was properly served, and defective service makes the judgment void rather than merely vulnerable. That is a much easier argument to win than excusable neglect.
Valid service on an individual inside Arizona means a process server or constable personally hands the summons and complaint to the defendant, leaves copies with someone of suitable age at the defendant’s home, or delivers them to an authorized agent.4New York Codes, Rules and Regulations. Arizona Justice Court Rules of Civil Procedure – Rule 113 – Serving a Summons and Complaint Service on someone outside Arizona can be made by personal delivery or by certified mail with restricted delivery and a signed return receipt.
If the papers were left with a roommate who never passed them on, mailed to a stale address, or never delivered at all, pull the proof of service and compare it line by line to the rules. A defect there can take the whole judgment down.
If You Were on Active Duty
Before any court enters a default judgment, the federal Servicemembers Civil Relief Act requires the plaintiff to file an affidavit stating whether the defendant is in military service. If the defendant is on active duty, the court must appoint an attorney to represent them before the judgment can go through. If the plaintiff cannot determine military status, the court may require a bond.5Office of the Law Revision Counsel. United States Code Title 50 Section 3931 – Protection of Servicemembers Against Default Judgments
If a judgment was entered against you without this affidavit, or while you were on active duty without appointed counsel, it is subject to being reopened. Filing a false military-status affidavit is a federal crime punishable by up to a year in prison.
What the Creditor Can Collect, and What It Cannot Touch
If the judgment stands, the plaintiff becomes a judgment creditor with several tools. Knowing the limits tells you how worried to be.
Interest Keeps Running
The judgment accrues interest from the date it is entered until paid. For most judgments not based on a written contract, the rate is the lesser of 10 percent per year or 1 percent plus the federal prime rate, locked in on the entry date. Medical-debt judgments carry a lower cap: the lesser of the one-year Treasury yield or 3 percent per year.6Arizona Legislature. Arizona Revised Statutes 44-1201 – Rate of Interest for Loan or Indebtedness; Interest on Judgments; Definitions
Wage Garnishment
A judgment creditor can get a writ of garnishment and take part of your paycheck directly from your employer. Arizona caps the garnishable amount at the lesser of 10 percent of your disposable earnings for the pay period or the amount by which those earnings exceed 60 times the highest applicable minimum wage (federal, state, or local). Those limits came in with Proposition 209 in 2022 and are considerably more protective than the older federal formula. A court can lower the garnishment to 5 percent if you show extreme economic hardship.7Arizona Legislature. Arizona Revised Statutes 33-1131 – Definition; Wages; Salary
These caps do not apply to child support, where up to half of disposable earnings can be taken, or to debts owed for state and federal taxes.
Bank Accounts
A creditor can also garnish bank, savings, or credit union accounts. Arizona law protects the first $150 in an individual account and $300 in a joint account held by married account holders.8Arizona Legislature. Arizona Revised Statutes 12-1596 – Forms Anything above that is fair game. If exempt funds like Social Security or disability payments were swept up, you can request a hearing to get them back.
Liens on Real Property
The creditor can record a certified copy of the judgment with the county recorder in any county where you own real property. With the required information statement attached, the recording creates a lien, and the lien has to be paid before you can sell or refinance.9Arizona Legislature. Arizona Revised Statutes 33-961 – Recording That is leverage even if the creditor never garnishes a dollar.
How Long You Are Living With This
An Arizona judgment is enforceable for 10 years from entry, and the creditor can renew it for another 10. A diligent creditor can keep renewing indefinitely.10Arizona Legislature. Arizona Revised Statutes 12-1551 – Execution and Renewal of Judgments Interest runs the whole time. A $10,000 judgment at 10 percent roughly doubles over a decade without a single additional fee.
If vacating is not an option, settling for less than face value is sometimes the realistic move, especially if the creditor sees that your paycheck and accounts are mostly protected anyway.
If You Settle, Watch the Tax Bill
When a creditor accepts less than the full judgment amount, the forgiven portion can count as taxable income. The IRS treats canceled debt as ordinary income in the year of cancellation, and the creditor may send you a Form 1099-C reporting the forgiven amount.11Internal Revenue Service. Topic No. 431 – Canceled Debt, Is It Taxable or Not You have to report the correct amount whether or not you receive the form and whether or not the form is accurate.
Exceptions exist. Debt discharged in bankruptcy is generally not taxable, and insolvency at the time of cancellation can reduce or wipe out the tax. On a large settlement, talk to a tax professional before signing anything, so the win in April does not turn into a surprise.