Got a Default Judgment on a Debt in New York? How to Vacate It Under CPLR § 5015(a)

Debt collectors frequently win judgments in New York civil courts by default — the person sued never responded or appeared, so the court entered judgment for the plaintiff. That judgment is then used to freeze bank accounts, garnish wages, and attach property. But a default judgment is not necessarily permanent. Under CPLR § 5015(a), New York courts can vacate (undo) a default if you meet the applicable standard. This guide covers how that works for credit card, medical, and similar consumer debt — which is distinct from, though related to, vacating a default in a foreclosure case.

Two main grounds — CPLR § 5015(a)(1) and (a)(4)

The two most commonly used grounds in consumer debt cases are:

• CPLR § 5015(a)(1) — Reasonable excuse and meritorious defense. You show (1) a reasonable excuse for why you did not respond to the lawsuit, and (2) that you have a potentially valid defense to the debt claim. Both prongs are generally required.
• CPLR § 5015(a)(4) — Lack of jurisdiction. You were never properly served with the lawsuit — meaning the court never had valid jurisdiction over you. Under this ground, you generally do not need to separately establish a meritorious defense.

What counts as a reasonable excuse — CPLR § 5015(a)(1)

Courts have broad discretion, and New York has a stated policy of preferring to decide cases on the merits. Excuses courts have accepted include:

• A serious illness or medical emergency that prevented you from responding
• Not having been properly served with the complaint (this can also support an (a)(4) motion independently)
• Not knowing you had been sued because the collector used a wrong or outdated address
• Law-office failure, if you had retained an attorney who failed to respond
• Excusable confusion during active settlement negotiations with the creditor

The excuse should be specific and supported by documentation where possible. A vague claim without backing is routinely denied.

What counts as a meritorious defense — CPLR § 5015(a)(1)

In consumer debt cases, common potentially meritorious defenses include:

• The statute of limitations has run. In New York, the general limitations period on a contract claim (such as a credit card) is 6 years from breach. Debt buyers must also contend with potential shorter periods depending on choice-of-law provisions and the issuing bank's home state. This area is contested and fact-specific.
• The debt is not yours — identity theft, mistaken identity, or the collector sued the wrong person.
• The amount claimed is wrong — charges, fees, or interest added without a legal basis.
• The collector lacks standing — debt buyers must prove a complete, documented chain of assignment from the original creditor. Gaps in that chain can defeat their claim.
• The debt was already paid or settled and the collector has no remaining claim.

Improper service — CPLR § 5015(a)(4)

If you were never actually served with the lawsuit, or if service was fundamentally defective, the court lacked jurisdiction and the judgment may be vacated under CPLR § 5015(a)(4). Common service defects in consumer debt cases include:

• A process server who filed a false or inaccurate affidavit of service (sometimes called 'sewer service')
• Service at an address you had moved away from before the lawsuit was filed
• The person served was not a co-resident of suitable age and discretion
• Improper methods used when proper service requires personal delivery or other specific procedures

The NYCourts.gov DIY Order to Show Cause program

New York's unified court system maintains a self-help portal at nycourts.gov that guides unrepresented people through completing an Order to Show Cause to vacate a default judgment in eligible consumer debt cases. The portal asks you the relevant questions, generates the court papers based on your answers, and tells you where to file. Availability varies by case type and courthouse — check nycourts.gov for current access before relying on it for your specific situation.

Time limits — act promptly

Under CPLR § 5015(a)(1), you must move within a reasonable time after learning of the judgment — courts generally expect a motion within one year of receiving notice of entry. Under (a)(4) for improper service, there is no fixed statutory limit, but courts still expect prompt action once you learn of the judgment.

If the creditor has already frozen your bank account or started garnishing wages, those actions will continue unless a court grants a temporary stay as part of the Order to Show Cause. Request the stay in the same papers.

What vacating the judgment does — and does not do

Vacating the judgment restores the case to active litigation — you will have the chance to answer the complaint and raise your defenses. It does not automatically mean you win the underlying debt case, and it does not erase the debt. What it does is restore your right to contest the claim before a court rather than have the outcome decided by your silence.