Vacating a Default Judgment in a Texas Debt Lawsuit

A Default Judgment Can Be Serious—But It Is Not Always the End of the Case

Many defendants first learn that a debt lawsuit became serious when a bank account is frozen, a judgment lien appears, a collector begins post-judgment discovery, or a letter arrives stating that judgment has already been entered.

A default judgment can be difficult to undo, but Texas law provides several possible procedures depending on when the judgment was signed, whether the defendant was properly served, whether notice of the judgment was received, whether the defendant participated in the case, and whether the trial court still has plenary power.

Potential remedies can include a motion for new trial, motion to set aside the default judgment, Rule 306a delayed-notice relief, restricted appeal, bill of review, direct appeal in appropriate cases, or a challenge to a void judgment.

The correct remedy is highly timing-sensitive. Choosing the wrong procedure—or waiting while trying to negotiate with the creditor—can cause available remedies to expire.

Ridgely Davis Law evaluates default judgments in Texas debt cases by rebuilding the procedural history from the beginning: how service occurred, what was filed, what notices were sent, when judgment was signed, when the defendant first learned of it, what defenses existed, and what deadlines remain.

If you have discovered a default judgment, act immediately. The first issue is not whether the debt seems fair—it is which procedural doors are still open.

What Is a Default Judgment?

A default judgment is a judgment entered when the defendant fails to answer or otherwise fails to participate as required.

No-Answer Default

A no-answer default generally occurs when the defendant does not file a timely answer after valid service.

Post-Answer Default

A post-answer default can occur when a defendant has appeared but later fails to attend trial or otherwise participate as required.

The distinction matters because the plaintiff’s proof obligations and the defendant’s post-judgment remedies can differ.

See Default Judgment in a Debt Lawsuit.

First Question: When Was the Judgment Signed?

The judgment-signing date drives many post-judgment deadlines.

In county and district court, a motion for new trial is generally due within 30 days after judgment under Rule 329b. A timely motion can extend the trial court’s plenary power and the appellate deadline.

If the judgment is older, other remedies such as restricted appeal or bill of review may need to be evaluated.

The current Texas Rules of Civil Procedure are published by the Texas Judicial Branch.

Second Question: Were You Properly Served?

Service is fundamental to a default judgment.

The defense should review:

• The citation;
• The petition served;
• The return of service;
• The date of service;
• The address used;
• The method of service;
• Any substituted-service order;
• Any alternative-service affidavit;
• Whether service complied with the court’s order;
• Whether the return contains required information; and
• Whether the person served was actually the defendant or authorized recipient.

A default judgment entered without proper service can raise due-process and jurisdictional issues very different from an ordinary Craddock motion.

See Improper Service in Debt Lawsuits.

Third Question: When Did You Learn About the Judgment?

If you did not receive notice or actual knowledge of the judgment within 20 days after it was signed, Texas Rule of Civil Procedure 306a may alter the start date for certain post-judgment deadlines.

Under Rule 306a(4), qualifying periods may begin when notice or actual knowledge is first received, but not more than 90 days after the original judgment was signed.

That relief is not automatic. The party must use the Rule 306a procedure to establish the date notice or actual knowledge was first obtained.

This can be critical when the first sign of the lawsuit is a frozen bank account several weeks after judgment.

Motion for New Trial

If the motion-for-new-trial deadline remains open, this is often the most direct method for asking the trial court to vacate a default judgment.

In county and district court, Rule 329b generally requires filing within 30 days after the judgment is signed, subject to Rule 306a delayed-notice relief where applicable.

See Motion for New Trial.

The Craddock Framework

Texas default-judgment practice commonly applies the framework from Craddock v. Sunshine Bus Lines when a defendant timely seeks a new trial after certain defaults.

In simplified terms, the defendant generally must establish:

1. The failure to answer or appear was not intentional or the result of conscious indifference but was due to mistake or accident;
2. The motion sets up a meritorious defense; and
3. Granting a new trial will not cause delay or otherwise injure the plaintiff.

The motion should contain specific facts. Courts distinguish between an intentional disregard of litigation and an understandable mistake, accident, or failure of notice.

What Does “Conscious Indifference” Mean?

The issue is not simply whether the defendant was negligent. The court examines whether the failure to act was deliberate or showed conscious indifference to the lawsuit.

Examples requiring factual analysis can include:

• Misplacing papers;
• Believing an insurer or attorney was handling the case;
• Internal business mail failures;
• Illness or emergency;
• Calendar mistakes;
• Incorrect assumptions about an extension;
• Failure to receive trial notice;
• Electronic filing or notice issues; or
• Other accidental circumstances.

The explanation should be credible, detailed, and supported where possible.

What Is a Meritorious Defense?

The defendant generally needs to show that reopening the case would not be pointless. The motion should set up a real defense.

Potential examples in debt litigation include:

• The debt was paid;
• The plaintiff is not the owner;
• The assignment chain is defective;
• The lawsuit is barred by limitations;
• The account belongs to someone else;
• The signature is not authentic;
• The personal guarantee is limited or does not apply;
• The amount includes unauthorized interest or fees;
• Collateral proceeds were not credited;
• A prior settlement released the debt;
• The plaintiff lacks admissible proof; or
• The damages calculation is materially wrong.

See Debt Buyer Lawsuits, Payment Defense, and Standing to Sue.

How Do You Show No Unfair Delay or Injury?

The third Craddock element generally asks whether granting the new trial would cause delay or injury that cannot be addressed fairly.

Defendants may offer to:

• Proceed promptly;
• Reimburse reasonable default-related costs;
• Agree to an expedited schedule;
• Make witnesses available;
• Avoid unnecessary delay; or
• Take other reasonable steps to restore the parties to their pre-default position.

The goal is to show that reopening the case will allow a merits decision without unfairly prejudicing the plaintiff.

What If I Was Never Properly Served?

A service defect can fundamentally change the analysis.

If the court never acquired personal jurisdiction because service was invalid, the judgment may be void rather than merely subject to the ordinary Craddock test.

Texas appellate courts carefully review the face of the record in default cases because strict compliance with service rules is important.

Potential defects can involve:

• Wrong address;
• Service on the wrong person;
• Failure to comply with substituted-service order;
• Defective return;
• Expired citation;
• Missing petition;
• Improper service on an entity;
• Failure to establish alternative-service requirements; or
• Other jurisdictional defects.

Service challenges are technical. The entire service record should be reviewed rather than relying only on the defendant’s memory.

Restricted Appeal

A restricted appeal can provide relief from some default judgments when the ordinary appeal timetable has passed.

Under Texas Rule of Appellate Procedure 30, a qualifying party may pursue restricted appeal if the party did not participate—either in person or through counsel—in the hearing that resulted in the judgment and did not timely file a post-judgment motion, request findings, or notice of appeal, among other requirements.

The notice of restricted appeal is generally due within six months after the judgment is signed under Rule 26.1(c).

Restricted appeal is based on error apparent from the face of the record. New evidence generally cannot be added simply to prove service was bad or a defense existed.

The official appellate rules are available through the Texas Judicial Branch.

Bill of Review

A bill of review is an independent equitable proceeding used to challenge a final judgment after ordinary post-judgment and appellate remedies are no longer available.

Traditional bill-of-review requirements can be demanding and may include showing a meritorious defense that the petitioner was prevented from making because of fraud, accident, wrongful act of the opposing party, or official mistake, unmixed with the petitioner’s own negligence.

However, due-process cases involving lack of service or lack of notice can modify those traditional requirements.

A bill of review should not be treated as a routine extension of a missed motion for new trial. It is a distinct lawsuit with its own pleading and proof requirements.

Justice Court Default Judgments

Justice court has separate post-judgment procedures.

Rule 505.3 generally provides a 14-day period to file a motion for new trial after judgment. Rule 506.1 generally provides a 21-day period to perfect an appeal to county court, where the case is generally tried de novo.

That means a justice-court defendant should not rely on the county-and-district-court 30-day Rule 329b deadline.

What If the Default Judgment Is Years Old?

An older judgment is more difficult to attack, but age alone does not answer the question.

Possible issues may include:

• Whether service was void;
• Whether a bill of review remains available;
• Whether the judgment is dormant;
• Whether the creditor properly revived or renewed it;
• Whether the judgment has been satisfied;
• Whether bankruptcy affected it;
• Whether the creditor is collecting the correct amount; and
• Whether post-judgment interest is calculated correctly.

See Judgment Renewal and Debt Lawsuit Judgments in Texas.

Does Trying to Vacate the Judgment Stop Collection?

Not automatically.

A creditor may continue collection unless enforcement is stayed through an applicable procedure.

That can mean dealing simultaneously with:

• Motion for new trial;
• Restricted appeal;
• Bill of review;
• Supersedeas;
• Bank garnishment;
• Post-judgment discovery;
• Judgment liens;
• Turnover orders;
• Receiverships; and
• Settlement.

See Bank Account Seizure and Post-Judgment Discovery.

Can You Settle Instead of Vacating the Judgment?

Yes. Sometimes post-judgment settlement is economically preferable to litigation over the default. In other cases, attempting to vacate the judgment first creates better leverage.

A settlement may include:

• Discounted payoff;
• Payment plan;
• Release of garnishment;
• Release of judgment lien;
• Agreement not to pursue execution;
• Satisfaction of judgment;
• Release of personal guarantors; or
• Dismissal of pending post-judgment proceedings.

See Settlement.

How Ridgely Davis Law Evaluates a Default Judgment

We reconstruct the case chronologically.

That review may include:

• Petition filing date;
• Citation issuance;
• Service method;
• Return of service;
• Answer deadline;
• Default request;
• Evidence submitted for default;
• Judgment signing date;
• Clerk notice;
• Date of actual knowledge;
• Collection activity;
• Potential defenses;
• Rule 306a issues;
• Motion-for-new-trial deadline;
• Restricted-appeal deadline;
• Bill-of-review issues; and
• Settlement and collection exposure.

From there, we identify the fastest viable path with the best chance of improving the client’s position.

1. Can a default judgment be vacated in Texas?

Yes, in some circumstances. The available procedure depends heavily on timing, service, notice, and participation.

2. How fast do I need to act?

Immediately. A county or district court motion for new trial is generally due within 30 days after judgment, subject to delayed-notice rules.

3. What if I never knew about the lawsuit?

That may create service, Rule 306a, restricted-appeal, or bill-of-review issues depending on the facts.

4. What if I was served but forgot to answer?

A timely motion for new trial may still be possible if the default was due to mistake or accident rather than intentional or consciously indifferent conduct and the other requirements are met.

5. What is Craddock?

It is the Texas framework commonly governing motions for new trial after certain default judgments.

6. What is a meritorious defense?

It is a real defense that, if the alleged facts are true, could defeat or reduce the plaintiff’s claim.

7. Does improper service automatically void the judgment?

Invalid service can deprive the court of personal jurisdiction and create a void-judgment issue, but the service record must be analyzed carefully.

8. What if the process server lied?

The available procedure depends on timing and record posture. Evidence outside the record may be used in some proceedings but not ordinary restricted appeal.

9. What is a restricted appeal?

It is a specialized appellate procedure generally available within six months to qualifying nonparticipating parties when error appears on the face of the record.

10. What is a bill of review?

It is an independent equitable action seeking to set aside a final judgment after ordinary post-judgment remedies have expired.

11. Can I use new evidence in a restricted appeal?

Generally no. Restricted appeal is limited to error apparent from the face of the existing record.

12. Can I use new evidence in a bill of review?

Potentially, yes. A bill of review is a separate proceeding and may involve evidence outside the original record.

13. Does filing a motion stop garnishment?

No, not automatically.

14. Can I get my bank account unfrozen?

Potentially, depending on exemption issues, garnishment procedure, settlement, or relief from the judgment.

15. Can I settle while trying to vacate the judgment?

Yes. Settlement can proceed while post-judgment relief is pursued.

16. What if the judgment is from justice court?

Justice court uses separate deadlines, including a general 14-day motion-for-new-trial period and 21-day appeal perfection period.

17. What if the judgment is more than six months old?

Restricted appeal may no longer be available, but bill-of-review or void-judgment issues may still need evaluation.

18. Can I challenge only the amount of the judgment?

Potentially, depending on the procedural vehicle and whether damages or interest were improperly awarded.

19. Will vacating the judgment erase the debt?

No. Vacating the judgment generally reopens the lawsuit so the claim can be litigated or settled on the merits.

20. When should I contact Ridgely Davis Law?

Immediately after discovering a default judgment, garnishment, lien, turnover order, or other post-judgment collection activity.

Speak with a Texas Default Judgment Lawyer

A default judgment can quickly move from court paperwork to frozen accounts, liens, asset discovery, and turnover proceedings. But the options available immediately after judgment are often much better than the options available months later.

Ridgely Davis Law represents consumers and businesses throughout North Texas and Texas in debt cases involving default judgments, improper service, motions for new trial, restricted appeals, bills of review, and post-judgment collection.

Contact Ridgely Davis Law immediately if you discover that a default judgment has been entered against you.

Continue Your Research

• Business Debt with Personal Guarantees
• Promissory Note Lawsuits
• SBA Loan Lawsuits
• Merchant Cash Advance Lawsuits
• Equipment Financing Lawsuits
• What to Do If You Were Just Served
• Texas Answer Deadline
• Filing an Answer
• Discovery in Texas Debt Lawsuits
• Summary Judgment in Texas Debt Lawsuits
• Settling a Texas Debt Lawsuit
• Mediation in Texas Debt Lawsuits
• Standing to Sue
• Assignment of Debt
• Business Records Affidavits
• Payment as a Defense
• Understanding Judgments
• Post-Judgment Discovery
• Bank Account Seizure
• Can Bankruptcy Stop a Debt Lawsuit?