Default Judgment

What it is

A default judgment is a judgment a court enters in favour of the creditor because the debtor did not file a defence to a claim within the time allowed. In effect, the debtor's silence is treated as a failure to dispute the debt, and the court can decide the matter without a hearing.

The judgment usually covers the debt, interest and recoverable costs. It turns an unpaid invoice into a formal, enforceable debt.

Why it matters

A default judgment is a powerful outcome because it unlocks enforcement options such as a garnishee order or a writ of execution. It also remains on record, which can affect the debtor's credit standing.

Obtaining judgment is only the first half of recovery; the next step is actually collecting on it. Merion manages both stages for business clients through refer a debt.

Good to know

This is general information and not legal advice. A default judgment can sometimes be set aside if the debtor shows a genuine reason for not responding and an arguable defence. Strict time limits and procedures apply, so the underlying claim must be served correctly. A judgment does not guarantee payment if the debtor has no assets or income to enforce against.