Michigan Small Claims Default Judgment: What Happens If You Miss Court

The Short Answer: You Lose Automatically

When a defendant doesn't show up to a Michigan small claims hearing, the court may enter a default judgment. For a liquidated claim, the court may enter judgment; for an unliquidated claim, it must take ex parte proofs to determine the amount (MCR 4.304(B)(1)). A default is not automatically the full amount requested.

Before entering judgment, the court must have jurisdiction. If you were not personally served, or did not sign a certified-mail receipt at least 7 days before the scheduled appearance, the court generally cannot enter judgment unless you appear and do not request a continuance (MCL 600.8406(2); MCR 4.303(C)).

What a Default Judgment Actually Costs You

The judgment on Form DC 85 breaks down into three parts:

Principal damages — whatever the plaintiff asked for, up to Michigan's $7,000 small claims cap.

Taxable costs — the plaintiff's filing fee ($30 to $70 depending on claim size), certified mail costs, and service fees.

Post-judgment interest — this one catches people off guard. Under MCL 600.6013, interest accrues from the date the plaintiff originally filed the case, not from the judgment date. The rate adjusts every six months based on the 5-year U.S. Treasury Note yield plus 1%. On a $5,000 judgment, that adds up fast.

The 21-Day Enforcement Window

The plaintiff generally cannot obtain a writ of garnishment until 21 days after judgment is entered (MCR 4.305(C)). That waiting period applies to garnishment, not every enforcement method.

After that period, the plaintiff may seek a periodic wage garnishment (Form MC 12) or a non-periodic bank garnishment (Form MC 13), subject to the applicable procedures and exemptions.

When Missing Court Wasn't Your Fault

Sometimes people miss hearings for legitimate reasons — a medical emergency, a car accident on the way to court, never actually receiving the papers despite what the records say. Michigan courts recognize this and provide a process to undo a default judgment through Form MC 99 (Motion and Affidavit to Set Aside Default).

Under MCR 2.603(D)(1), a motion generally requires good cause for missing the hearing and a meritorious defense showing you had a real argument on the substance of the case. That two-part requirement does not apply when the motion challenges the court's personal jurisdiction for lack of service under MCR 2.612(C)(1)(d). Timing matters — if you were personally served, file within 21 days of entry of the judgment.

Filing Form MC 99 does not automatically stop enforcement. The plaintiff can continue garnishment efforts while your motion is pending unless you separately ask the court for a stay and the judge grants it.

Can You Still Negotiate?

Yes. Even after a default judgment, you can contact the plaintiff directly to negotiate a reduced settlement. If they agree, the plaintiff files a Satisfaction of Judgment (Form MC 17) once you've paid the agreed amount. Many plaintiffs prefer a guaranteed partial payment over chasing a full judgment through garnishment — especially for smaller amounts.

If you can't pay the full judgment at once but don't dispute that you owe the money, Form MC 15 lets you request a court-ordered installment plan. An approved MC 15a order can stay periodic wage garnishment after it is served on the employer; it does not stay other collection methods.

Prevention Is Simpler Than the Cure

If your hearing date hasn't passed yet and you have a legitimate conflict, request an adjournment using Form MC 309. Both parties can also sign a written stipulation to reschedule. The key: a phone call to the clerk doesn't automatically postpone anything. You need a signed order from the judge.

The Michigan Small Claims Response Guide includes a deadline tracking worksheet that maps every critical date — from your service date through the hearing, appeal window, and enforcement timeline.

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