Indiana Small Claims Default Judgment — What Happens and How to Vacate It

How a Default Judgment Gets Entered

Under Small Claims Rule 10(B), when a defendant fails to appear at the scheduled hearing, the court may enter a default judgment if the rule's required checks are satisfied. The court assesses court costs against the defendant; statutory post-judgment interest is 8% per year unless a different contract rate applies.

Before entering the default, the judge must make an inquiry under oath to confirm four things: that service of process makes it reasonably probable you received notice; that you are not under a legal disability and understand the notice; that the Servicemembers Civil Relief Act's protections against default have been addressed; and that the plaintiff has a prima facie case.

Once entered, the default judgment goes on the Small Claims Judgment Docket. The plaintiff can immediately begin collection — Proceedings Supplemental to locate your assets, wage garnishment orders, or bank account levies. There is no automatic waiting period.

Why Defendants Miss the Hearing

Not every missed hearing is negligence. Common reasons include never actually receiving the papers (defective service), a medical emergency, confusion about the hearing date or location, a reasonable belief the dispute was already settled, or simply not understanding that appearing in court — not filing a written answer — is what Indiana requires.

Whatever the reason, missing the hearing does not mean the judgment is permanent. Indiana provides a structured process to ask the court to set it aside.

Filing a Motion to Vacate Under Small Claims Rule 10(C)

To challenge a default judgment within one year after entry, file a written motion with the court that entered it. Under Small Claims Rule 10(C), the court may vacate the judgment and reschedule the original claim for good cause shown. After one year, the judgment debtor may seek reversal only by filing an independent action as provided by Trial Rule 60(B).

Good cause within one year. Explain why you missed the hearing and support that explanation with available records, such as documentation of a medical emergency or evidence about service. Also summarize the defense you would present if the case is reopened. These facts do not guarantee that the court will grant relief.

After one year. Trial Rule 60(B) governs the independent action for relief after the Small Claims Rule 10(C) one-year period. The appropriate grounds and timing depend on the circumstances; an ordinary motion filed after the one-year period is not a substitute for the required independent action.

What Your Motion Should Include

A strong Motion to Vacate typically contains:

• A clear statement of the good cause for setting aside the judgment under Small Claims Rule 10(C)
• A factual explanation of why you did not appear, with supporting documentation (medical records, travel records, evidence of defective service)
• A summary of your meritorious defense — the substance of what you would argue if the case goes to trial
• A request that the court vacate the default and reset the matter for a hearing on the merits

The court may schedule a hearing on your motion. The plaintiff gets notice and can oppose it. If the judge grants the motion, the default judgment is vacated and a new trial date is set.

Filing Does Not Stop Collection

A critical point many defendants miss: filing a Motion to Vacate does not automatically pause the plaintiff's collection efforts. While your motion is pending, the plaintiff can still pursue wage garnishment, bank levies, or Proceedings Supplemental.

If you need immediate protection, file a separate Motion to Stay Execution alongside your Motion to Vacate. This asks the court to temporarily halt enforcement while the vacate motion is decided.

Act Quickly

The strongest factor in a successful vacate motion is speed. A motion filed within days or weeks of the default judgment carries far more weight than one filed nine months later. Courts evaluate whether the delay in seeking relief was reasonable — and waiting without explanation undercuts every other argument.

If you have been defaulted in an Indiana small claims case, the Indiana Small Claims Response Guide includes a step-by-step walkthrough of the Motion to Vacate process, including the documentation you need and a timeline for each ground under Trial Rule 60(B).

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