Alternatives to Ignoring a Small Claims Lawsuit in Arizona
If you are thinking about ignoring a small claims lawsuit in Arizona — not filing an Answer, not showing up — the short version is this: ignoring it is the single most expensive option available to you. A default judgment lets the plaintiff collect the amount awarded plus court costs, and the creditor can pursue wage or bank-account garnishment, execution against nonexempt property, or a recorded judgment lien on real property through post-judgment procedures. Every alternative, including admitting you owe the money and negotiating a payment plan, leaves you in a better position than a default.
Here are five alternatives to ignoring the lawsuit, in order from simplest to most involved.
What Happens If You Ignore It
Before the alternatives, a clear picture of what default looks like in Arizona:
- You are served with a small claims complaint. The 20-day answer clock starts.
- You do not file a written Answer within 20 calendar days.
- The plaintiff files an Application for Entry of Default with the court and mails you a copy.
- You have 10 judicial days after the application is filed to file an Answer; filing within that period defeats the default application.
- If you do not answer during that period, the default becomes effective and the plaintiff may seek judgment without a trial.
- After judgment, the creditor may seek collection through the regular Civil Division, including wage or bank-account garnishment and execution against nonexempt personal property. For ordinary debts, wage garnishment is capped at the lesser of 10% of disposable earnings or the amount above 60 times the applicable minimum wage for the workweek (A.R.S. § 33-1131(B)). A real-property judgment lien requires recording a certified judgment and information statement; after recording, it lasts 10 years (A.R.S. §§ 33-961, 33-964).
- Post-judgment interest accrues under A.R.S. § 44-1201. For most non-medical judgments without a different statutory or written-contract rate, subsection B sets the rate at the lesser of 10% a year or 1% plus the prime rate. The creditor may seek enforcement within 10 years and renew the judgment by affidavit or action for another 10-year period (A.R.S. §§ 12-1551, 12-1612).
A default judgment in Arizona's Small Claims Division is final — there is no right of appeal. You can ask the court to vacate it under ARSCP Rule 16 on grounds such as excusable neglect, fraud or misconduct, a void judgment, or prior satisfaction. The motion must be filed within a reasonable time; motions based on excusable neglect or fraud or misconduct must be filed within six months.
Alternative 1: File an Answer Disputing the Claim
What it is: You file a one-page Answer form with the court stating that you dispute the plaintiff's claim, either in whole or in part. The court schedules a hearing where both sides present their case.
Why it beats ignoring: Filing an Answer preserves your right to defend yourself at the hearing. Even if you ultimately lose, the hearing officer considers both sides of the evidence. The plaintiff does not get an automatic win.
What it costs: Answer fees depend on the court. Maricopa County lists $46 and Pima County lists $38; check your court's current schedule for other counties. If you cannot afford the fee, you can file an Application for Deferral or Waiver of Court Fees under A.R.S. § 12-302 alongside the Answer — filing the waiver application satisfies the deadline requirement.
What you need: The correct Answer form for your county (Maricopa: SC 8150-312; Pima: CVSC5; rural counties: statewide LJSC forms), your filing fee or waiver application, and the ability to mail or deliver a copy to the plaintiff with a completed Certificate of Service.
This is the default recommendation for any defendant who disagrees with the plaintiff's claim. The filing itself takes less than an hour. You do not need a lawyer — the Small Claims Division is designed for self-represented parties.
Alternative 2: File an Answer and a Counterclaim
What it is: You respond to the plaintiff's claim and assert your own monetary claim against them. Arizona's small claims rule allows a counterclaim based on the same or a different event.
Why it beats ignoring: Not only do you prevent a default judgment, you put the plaintiff on defense for your own claim. If the hearing officer finds in your favor on the counterclaim, the plaintiff may end up owing you money.
What it costs: The Answer filing fee plus any separate counterclaim fee (varies by county — in Pima County, a counterclaim filed simultaneously with the Answer incurs no additional fee; filed separately, it costs $33). If your counterclaim exceeds $5,000, it triggers a mandatory transfer of the entire case to the regular Civil Division.
When to use it: When the plaintiff owes you money from the same dispute. Common scenarios: a contractor suing you for unpaid work who actually did the job incorrectly; a former landlord suing for damages who is wrongfully withholding your security deposit; a buyer suing over a product who actually damaged it after purchase.
A warning: Filing a counterclaim over the $5,000 small claims jurisdictional cap automatically moves the entire case to the Civil Division, where the rules are more formal, discovery is available, and the plaintiff can bring an attorney. Make sure the amount at stake justifies the added complexity.
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Alternative 3: Settle Before Filing an Answer
What it is: You contact the plaintiff, negotiate a resolution — reduced amount, payment plan, exchange of property, mutual walk-away — and the plaintiff files a voluntary dismissal with the court.
Why it beats ignoring: Settlement ends the lawsuit entirely. No judgment, no collection activity, no court record of a loss. Many plaintiffs prefer a guaranteed partial recovery over the uncertainty of a hearing.
What it costs: Whatever you agree to in the settlement. No additional court fees unless documents are filed.
The critical rule: If you settle, make sure the plaintiff files a voluntary dismissal or a stipulated dismissal with the court. Simply mailing a check does not dismiss the case. If the plaintiff accepts your payment but never files the dismissal, and you never filed an Answer, the plaintiff could still obtain a default judgment on the original claim. Get the dismissal in writing and filed with the court before paying.
Important timing note: Settlement discussions do not pause your 20-day deadline. If negotiations are still going back and forth as Day 20 approaches, file your Answer anyway. You can always settle after filing — you cannot un-default after missing the deadline.
Alternative 4: Admit the Claim and Negotiate a Payment Plan
What it is: You file an Answer admitting that you owe the claimed amount (or a portion of it) and then negotiate a payment schedule with the plaintiff.
Why it beats ignoring: A filed admission looks very different from a default judgment. When you admit, the court enters judgment, but you control the timing — you can negotiate installment payments with the plaintiff before or immediately after the judgment is entered. When you default, the plaintiff has no incentive to negotiate because they already have the judgment and can pursue aggressive collection immediately.
What it costs: The filing fee for the Answer. The payment terms are whatever you and the plaintiff agree to.
When to use it: When you genuinely owe the money and cannot pay it all at once. Admitting and arranging payments is straightforward and predictable. Ignoring and waiting for a default judgment adds collection costs, applicable post-judgment interest under A.R.S. § 44-1201, and the stress of collection proceedings.
Alternative 5: Request a Transfer to the Civil Division
What it is: Under A.R.S. § 22-504(A) and ARSCP Rule 11, either party has an absolute right to transfer a small claims case to the regular Civil Division of the Justice Court. File the request at least 10 business days before the hearing. The transfer fee is $29 in Maricopa County.
Why it beats ignoring: The Civil Division gives you access to an attorney (hired at your own expense), jury trial rights, formal discovery (interrogatories, document requests, depositions), and the right to appeal an unfavorable judgment to Superior Court. None of these are available in Small Claims.
When to use it: When the case is complex enough that you need legal representation, when you want a jury to decide instead of a single hearing officer, or when the legal issues are significant enough that you want appeal rights as a safety net.
The tradeoff: The Civil Division is more formal, slower, and more expensive. If the claim is under $3,000 and the facts are straightforward, transferring to gain procedural rights you may not need is not cost-effective. But it is still better than ignoring the case.
The Math of Ignoring vs. Responding
Consider a $2,500 small claims case.
Ignoring: Default judgment for $2,500 plus the plaintiff's filing costs (roughly $58–$60) and applicable interest under A.R.S. § 44-1201. If an Application for Entry of Default is filed, you have 10 judicial days to answer before default takes effect. After judgment, the creditor may pursue enforcement through the regular Civil Division.
Filing an Answer: The fee is $46 in Maricopa County and $38 in Pima County; fees are set locally elsewhere. The court schedules the hearing within 60 calendar days after the Answer is filed. If you win, the court enters judgment in your favor. If you lose, the judgment may be less than the full amount if you presented evidence reducing the claim. The hearing officer sees both sides.
Settling: Whatever amount you negotiate — potentially 50–80% of the original claim, paid over time. If the settlement is documented and the case is dismissed, no judgment is entered and no collection proceeds under the dismissed claim.
Admitting and negotiating: The judgment is due when entered unless the plaintiff agrees to a payment plan.
Every option except ignoring gives you some measure of control over the outcome.
Who This Is For
- Arizona defendants who have been served and are considering not responding
- Defendants who believe the amount claimed is too small to bother with (the consequences of default often exceed the original claim)
- Defendants who think they do not have a defense (admitting and negotiating is still better than defaulting)
- Anyone who received small claims papers and feels overwhelmed by the process
Who This Is NOT For
- Defendants in consumer debt collection cases — specialized defense rules and free legal aid apply; contact Community Legal Services or Southern Arizona Legal Aid before choosing a response strategy
- Defendants who have already had a default judgment entered — the available option is a Motion to Vacate, which is a different process
- Cases in Superior Court or the regular Civil Division — this article covers Small Claims Division cases only
Taking the First Step
The single highest-value action you can take right now is filing your Answer before the 20-day deadline. Everything else — evidence gathering, hearing preparation, settlement negotiations — can happen after the Answer is filed. The Answer is what prevents default. Once it is filed, you have time.
The Responding to a Small Claims Case in Arizona guide walks you through the entire process in sequence: calculating your deadline, identifying your county's Answer form and filing fee, evaluating your response options, organizing your evidence, and preparing for the hearing. It is designed to get you from "I was just served" to "my Answer is filed" in a single structured read.
Frequently Asked Questions
What if I missed the 20-day deadline — is it too late?
Check the docket immediately. If the plaintiff has filed an Application for Entry of Default, you have 10 judicial days from that filing to submit an Answer and defeat the application. If a default judgment has been entered, you can seek relief by Motion to Vacate under ARSCP Rule 16. The motion must be filed within a reasonable time; motions based on excusable neglect or fraud or misconduct are due within six months.
Can I ignore the lawsuit if the amount is very small?
The amount of the original claim is not the full possible judgment. The court may include costs and applicable interest. After judgment, the creditor may pursue post-judgment collection through the regular Civil Division.
What if I cannot afford the filing fee?
File an Application for Deferral or Waiver of Court Fees under A.R.S. § 12-302 alongside your Answer. Filing the waiver application satisfies the timely filing requirement — you do not need to pay first. The court reviews your financial situation and decides whether to waive or defer the fee.
What if I want to settle but the plaintiff will not negotiate?
File your Answer within 20 days to prevent default, then continue settlement discussions. You can settle at any point before the hearing — and even on the day of the hearing, as many courts offer same-day mediation. Filing the Answer preserves your negotiating position; without it, the plaintiff has no reason to negotiate because they can simply take the default.
Does ignoring a small claims lawsuit affect my credit?
Arizona small claims judgments are public records. Justice courts do not report civil judgments directly to the major consumer credit bureaus, but credit bureaus may independently collect information from public court records.
Can the plaintiff garnish my wages immediately after a default judgment?
The creditor must start a separate post-judgment enforcement process. If you receive a garnishment notice, contact legal aid promptly.
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