NC Small Claims Court Default Judgment

It's Not a True "Default" Judgment

In standard NC civil litigation, a default judgment under Rule 55 is an administrative penalty — you didn't file a written answer, so the court enters judgment without hearing the merits. Small claims court doesn't work that way.

When a properly served defendant doesn't show up, the plaintiff still has to take the witness stand, testify under oath, present supporting documents, and prove every element of their claim by the greater weight of the evidence. If the plaintiff fails to meet that burden, the magistrate can dismiss the case — even with an empty defendant's chair.

But if the plaintiff does present a sufficient case and you're not there to challenge any of it, judgment enters against you. It's a judgment on the merits, not a procedural penalty. That distinction matters for what comes next.

Two Paths to Challenge It

Option 1: Appeal Within 10 Calendar Days

Under N.C.G.S. § 7A-228, either party can appeal a magistrate's judgment to District Court within 10 calendar days. This gets you a trial de novo — a complete restart before a District Court judge who ignores the magistrate's ruling.

For money claims, filing the appeal automatically stays execution. No bond needed.

This is the cleanest path if you're still within the 10-day window. File Form AOC-CVM-303 (Notice of Appeal) with the Clerk and pay the appeal filing costs within 20 days of the judgment (10 days for eviction cases).

Option 2: Motion to Set Aside Under Rule 60(b)

If the 10-day appeal window has passed, one possible route is a motion to set aside under Rule 60(b). A Rule 60(b) motion must be filed within a reasonable time. The grounds are limited:

• Rule 60(b)(1): Mistake, inadvertence, surprise, or excusable neglect — filed within a reasonable time, and no more than one year after judgment
• Rule 60(b)(4): Void judgment — for example, if you were never properly served or the case was improperly assigned to the magistrate

In some judicial districts, the Chief District Court Judge has authorized magistrates to hear Rule 60(b)(1) motions. Otherwise, the motion goes before a District Court judge, who can also consider broader grounds under Rule 60(b)(2) through (6), including newly discovered evidence and fraud.

Filing a Rule 60(b) motion does not automatically stay enforcement. You'll need a separate stay order from a judge to pause collection while the motion is pending.

What Counts as "Excusable Neglect"

Courts evaluate this case by case, but common arguments include:

• A documented medical emergency on the hearing date
• Severe weather or transportation failure that prevented attendance
• Service delivered to a wrong address or a person who never passed the papers along
• Genuine confusion about the hearing date (backed by evidence, not just "I forgot")

"I didn't think it was important" or "I was too busy" generally won't qualify. Neither will assuming the plaintiff would drop the case.

What Happens After a Judgment Stands

If neither appeal nor Rule 60(b) reverses the judgment, the plaintiff can pursue collection through:

• Writ of Execution — the sheriff levies on non-exempt personal property or bank accounts
• Judgment Lien — docketing creates a 10-year lien against any real property you own in that county

One significant protection: North Carolina prohibits wage garnishment for ordinary civil money judgments. Unlike most states, a judgment creditor cannot garnish your paycheck for a contractor dispute, unpaid loan, or property damage claim. Wage garnishment is limited to taxes, child support, alimony, ambulance service fees, and public hospital bills.

You also have the right to claim exemptions — $3,500 in personal property, $5,000 for your primary vehicle, and $35,000 homestead exemption — by filing a Motion to Claim Exempt Property within 20 days after being served with the exemption notice.

Don't Let It Get This Far

The NC Small Claims Response Guide covers every step from the moment you're served through the hearing and post-judgment options, so a missed deadline doesn't turn a manageable dispute into an enforceable judgment.

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