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A default judgment is a court order giving one side (usually the plaintiff) an award (usually money) against the defendant because the defendant has not told the court that they want to fight the case, or the defendant has not responded correctly to the order of default.
So, if a default judgment has been entered against you, what do you do now? You have a few options. First, you can ask the court to set aside the default judgment and give you an opportunity to contest it. Next, you can settle the debt with the debt buyer for an amount less than what the default judgment is for. And finally you can eliminate the default judgment completely by filing for bankruptcy.