If a default judgment in Arizona has been entered against you, your main options are to file a motion to vacate it under Arizona Rule of Civil Procedure 60(b), challenge the judgment as void because service was defective, negotiate a payoff with the creditor, or use Arizona’s exemptions to shield income and property from collection. Every one of these paths has a deadline, and the fastest one closes six months after the judgment is entered.
What Just Happened
A default judgment is a court order entered against a defendant who was properly served with a lawsuit but never filed an answer or other response. Because you didn’t respond, the court treats the plaintiff’s allegations as admitted and enters judgment without a trial. It carries the same legal weight as a judgment reached 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 Response Deadline Hasn’t Passed Yet
If you were personally served inside Arizona, you have 20 days from the date of service to file an answer or other 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. Different rules apply for defendants served outside Arizona by alternative methods, so check the proof of service in the court file.2New York Codes, Rules and Regulations. Arizona Rules of Civil Procedure – Rule 12 – Time to File and Serve a Responsive Pleading
Filing an answer or motion to dismiss is the only way to prevent a default. If the deadline is close and you aren’t ready, ask the plaintiff’s attorney in writing for an extension, or file a motion asking the court for more time. Even after the plaintiff applies for entry of default, there’s a 10-business-day window before the default becomes official — a last chance to file a late response before the door closes.
Getting the Judgment Vacated
If judgment has already been entered, your primary remedy is a motion to vacate under Rule 60(b). The court has discretion to grant relief, and you need to hit specific requirements.3New York Codes, Rules and Regulations. Arizona Rules of Civil Procedure – Rule 60 – Relief from Judgment or Order
Grounds That Actually Work
The Rule 60(b) grounds most relevant to a default judgment are mistake, inadvertence, surprise, or excusable neglect; a judgment that is void because the court lacked jurisdiction, usually because service was defective; fraud or misrepresentation by the plaintiff; and a catch-all “any other reason justifying relief” that courts apply sparingly.
Excusable neglect means a genuine misunderstanding or a circumstance beyond your control. A hospitalization is more persuasive than a forgotten deadline. Being too busy or choosing to ignore the papers rarely qualifies. A void judgment is the strongest ground because it must be set aside regardless of any other factor.
The Three Things You Have to Show
Arizona courts look for three elements. First, one of the Rule 60(b) grounds applies. Second, you have a meritorious defense to the underlying lawsuit — not just an excuse for missing the deadline, but a real argument that could change the outcome on the merits. Third, you acted promptly once you learned about the judgment.
As a practical matter, attach a proposed answer to the motion. It shows the judge you’re ready to defend the case immediately if the default is set aside. Filing without one signals you aren’t serious, and judges notice.
Time Limits
A motion based on excusable neglect, newly discovered evidence, or fraud must be filed within a reasonable time and no more than six months after the judgment was entered. For void judgments there is no six-month cap, but you still have to file within a reasonable time. Filing a Rule 60(b) motion does not automatically pause collection. The judgment remains enforceable while the motion is pending unless you separately obtain a stay.
Attacking Service Is Often the Strongest Move
A default judgment is only valid if you were properly served. If service was defective, the judgment is void, meaning the court never had authority over you at all. That’s a much easier argument to win than excusable neglect.
In Arizona, valid service on an individual inside the state means a process server or constable hand-delivers the summons and complaint to you personally, leaves copies with someone of suitable age at your home, or delivers copies 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 done by personal delivery or by certified mail with restricted delivery and a return receipt showing the defendant’s signature.
Pull the proof of service from the court file and compare it against the rules. If papers were left with a random roommate who never told you, mailed to the wrong address, or never delivered at all, that defect is worth raising.
If You Are or Were on Active Duty
Federal law adds a layer of protection. Under the Servicemembers Civil Relief Act, no court can enter a default judgment against any defendant unless the plaintiff first files an affidavit stating whether the defendant is in military service. If you’re on active duty, the court must appoint an attorney to represent you before any judgment can proceed. If the plaintiff can’t determine your military status, the court may require them to post a bond.5Office of the Law Revision Counsel. United States Code Title 50 Section 3931 – Protection of Servicemembers Against Default Judgments
If a default judgment was entered against you without that affidavit, or while you were on active duty without court-appointed counsel, the judgment is subject to being reopened.
What the Creditor Can Do to Collect
Once a default judgment stands, the plaintiff is a judgment creditor with several collection tools. Knowing them tells you which assets are at risk and which are protected.
Interest Keeps Running
The judgment accrues interest from the date it’s entered until paid in full. 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. The rate is locked in on the date judgment is entered. For judgments based on medical debt, the cap is much lower: 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 obtain a writ of garnishment and take part of your paycheck directly from your employer. Arizona limits the garnishable amount to the lesser of 10 percent of your disposable earnings for the pay period or the amount by which your disposable earnings exceed 60 times the highest applicable minimum wage (federal, state, or local). These limits, set by Proposition 209 in 2022, are significantly more protective than the old federal formula. A court can reduce the garnishment further to 5 percent if you show extreme economic hardship.7Arizona Legislature. Arizona Revised Statutes 33-1131 – Definition; Wages; Salary
These protections do not apply to child support orders, where up to half of your disposable earnings can be taken, or to debts for state and federal taxes.
Bank Account Garnishment
A creditor can also garnish funds in your bank, savings, or credit union account. 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 Beyond that, the creditor can take the rest. If exempt funds were seized, such as Social Security or disability payments, you can request a hearing to recover them.
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. Once recorded with the required information statement, the judgment creates a lien on that property. The lien has to be paid off before the property can be sold or refinanced, which gives the creditor leverage even if they take no other collection action.9Arizona Legislature. Arizona Revised Statutes 33-961 – Recording
How Long This Follows You
An Arizona judgment creditor can enforce a judgment for 10 years from the date it was entered. At the end of that period, the creditor can renew it for another 10 years. A diligent creditor can keep a judgment alive through successive renewals.10Arizona Legislature. Arizona Revised Statutes 12-1551 – Execution and Renewal of Judgments
Interest runs the whole time. A $10,000 judgment at 10 percent annual interest grows to roughly $20,000 in 10 years, even without additional fees. When vacating isn’t realistic, negotiating a settlement for less than the full amount is often the most practical path.
Settling for Less Can Create a Tax Bill
If the creditor accepts less than the full judgment, the forgiven portion may count as taxable income. The IRS treats canceled debt as ordinary income in the year the cancellation occurs, 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’re responsible for reporting the correct amount whether or not you receive a 1099-C and whether or not the form has errors. Exceptions exist. Debt discharged in bankruptcy is generally not taxable, and insolvency at the time of cancellation can reduce or eliminate the tax. Before finalizing a large settlement, talk to a tax professional so the following April doesn’t bring a surprise.