- Ignoring a Statement of Claim can result in default judgment being entered against you without any hearing on the merits.
- Default judgment can be for the full amount claimed, plus interest and costs.
- Once entered, a default judgment can be enforced through wage garnishment, bank account garnishment, and other collection tools.
- It is sometimes possible to have a default judgment set aside, but this requires a motion and is not guaranteed — acting quickly improves your chances significantly.
- The single best way to avoid default judgment is to respond within your deadline, even with a brief Notice of Intent to Defend.
- A default judgment can affect your credit and finances for years if left unaddressed.
The Short Answer: You Can Lose Automatically, Without Ever Being Heard
Ignoring a lawsuit in Ontario does not make it disappear. If you fail to respond to a Statement of Claim within your deadline, the plaintiff can obtain default judgment against you — a binding court judgment entered without any hearing on the actual facts or merits of the dispute. This is one of the most damaging, and most avoidable, outcomes in civil litigation.
What Is Default Judgment?
Default judgment is a mechanism under the Rules of Civil Procedure that allows a plaintiff to obtain judgment against a defendant who has not filed a defence within the required time. For straightforward monetary claims — such as an unpaid debt of a fixed amount — default judgment can be obtained relatively quickly and without a court hearing, based simply on the defendant's failure to respond.
How Default Judgment Happens, Step by Step
- The Statement of Claim is served, starting the 20/40/60-day response deadline depending on where you were served.
- The deadline passes without a Notice of Intent to Defend or Statement of Defence being filed.
- The plaintiff “notes” the defendant in default with the court registrar, a formal administrative step confirming no defence was filed.
- The plaintiff obtains default judgment — for liquidated (fixed-amount) claims, often administratively; for unliquidated claims, sometimes requiring a further hearing to assess damages.
- The judgment becomes enforceable, allowing the plaintiff to pursue collection.
Consequences of Default Judgment
Because there was no opportunity to dispute the facts, default judgment is frequently entered for the full amount originally claimed, plus pre-judgment interest and costs — even if you believed the amount was exaggerated or partially incorrect.
Beyond the immediate financial exposure, a default judgment becomes part of the public court record and can be reported in a way that affects your credit rating, potentially impacting your ability to obtain financing, credit cards, or even certain employment or licensing opportunities in the future.
How Default Judgments Are Enforced
Once a default judgment is entered, the plaintiff can pursue various enforcement tools under Ontario's Rules of Civil Procedure and Execution Act, including:
- Garnishment of wages — a portion of your paycheque paid directly to the creditor.
- Garnishment of bank accounts — funds seized directly from your accounts.
- Writs of seizure and sale registered against real property you own.
- Seizure of certain personal property through a court enforcement officer (formerly known as a sheriff).
Can You Set Aside a Default Judgment?
Yes, in some circumstances — but it requires bringing a formal motion to set aside the default judgment, and success is not guaranteed. Courts typically consider:
- Whether you have a reasonable explanation for failing to respond in time.
- Whether you moved to set aside the judgment promptly once you became aware of it.
- Whether you have a genuine, arguable defence to the underlying claim, not just a desire for more time.
- Whether setting aside the judgment would cause unfair prejudice to the plaintiff.
Courts are generally more sympathetic to defendants who act quickly once they discover a default judgment than to those who wait months to address it. If you have just learned of a default judgment against you, treat it as urgent.
How to Avoid Default Judgment
- Never ignore a Statement of Claim, regardless of whether you believe the claim is meritless or exaggerated.
- File a Notice of Intent to Defend immediately if you need more time — it's quick, simple, and buys an additional 10 days.
- Contact a lawyer as soon as you are served, not after the deadline has passed.
- Keep your address current with anyone who might need to serve you legal documents, to avoid missing service altogether.
A defendant assumes a Statement of Claim for $30,000 is exaggerated and will be dismissed if ignored. Sixty days later, they discover a default judgment for the full $30,000 plus interest and costs, and their wages are now being garnished. A motion to set aside the judgment is eventually successful, but only after significant additional legal fees and stress that a simple, timely response would have avoided entirely.
Facing a default judgment, or worried you may have missed a deadline? Call our Toronto litigation lawyers immediately at 416-274-2222 for a free consultation.
Frequently Asked Questions
Default judgment is a judgment entered against a defendant who fails to respond to a Statement of Claim within their deadline, without any hearing on the actual merits of the dispute.
For a straightforward debt or liquidated claim, default judgment can often be obtained for the full amount claimed plus interest and costs. For claims involving unliquidated damages (an amount the court must assess), a further hearing to assess damages may be required even after default is noted.
Yes, in some circumstances, through a motion to set aside the default judgment. Courts consider factors including whether you have a reasonable explanation for missing the deadline, whether you have a genuine defence to the claim, and whether you acted promptly after learning of the judgment.
There is no fixed deadline, but courts expect defendants to act promptly once they become aware of the judgment. The longer you wait, the harder it becomes to persuade a court to set the judgment aside.
The plaintiff can begin enforcement — including garnishing your wages or bank accounts, registering a lien against real property you own, or seizing certain assets — to collect on the judgment.
A default judgment can be reported and negatively affect your credit rating, and can remain a matter of public record, potentially affecting your ability to obtain financing or credit in the future.
If you were never properly served, or service was defective, this can be a strong basis for a motion to set aside a default judgment. Proper service is a strict legal requirement, and defects can be challenged.
Contact a lawyer immediately. Time matters significantly in bringing a successful motion to set aside a default judgment, and early legal advice maximizes your chances of a favourable result.