Default Judgment in Ontario: How to Set One Aside After a Debt Lawsuit
If a creditor sued you, the deadline to respond passed, and now there is a judgment against you that you never got to defend — that is a default judgment. The good news: an Ontario court can set aside a default judgment, because a judgment is supposed to follow a hearing of both sides, not an oversight. But there is a catch that trips people up constantly. You have to move quickly, and you have to show the court two things: a real reason you missed the deadline, and a defence worth hearing.
Here is how it works, and what to do this week.
How you ended up with a default judgment
In Ontario you generally have 20 days to file a defence after you are served with a claim. If you were served with a Statement of Claim or a Plaintiff’s Claim and that window closed with no defence on file, the creditor can ask the court to note you in default. Once you are noted in default, the creditor can obtain judgment against you — often without any further notice to you. That is why the first many people hear of a default judgment is when their wages are garnished or their bank account is frozen.
Two points that matter in debt cases:
- Most consumer-debt lawsuits in Ontario run through Small Claims Court, which as of October 1, 2025 handles claims up to $50,000 (raised from $35,000). Larger claims go to the Superior Court of Justice. The court you are in decides which rule governs your motion.
- Being noted in default is not the end of the road. It is a procedural step you can ask the court to reverse.
Yes, you can ask the court to set it aside — here is the test
A default judgment is not automatically permanent. You bring a motion to set aside the judgment, and the judge weighs a short list of factors.
In Small Claims Court, Rule 11.06 lets the court set aside the noting in default or the default judgment if you show:
- a meritorious defence — a defence with real substance, not just a wish to re-argue;
- a reasonable explanation for why the defence was not filed on time; and
- that you brought the motion as soon as reasonably possible in the circumstances.
In the Superior Court, Rule 19.08 lets the court set aside a default judgment “on such terms as are just.” The Court of Appeal’s leading case, Mountain View Farms Ltd. v. McQueen, directs judges to consider whether you moved without delay once you learned of the judgment, whether there is a plausible explanation for the default, and whether you have an arguable defence on the merits — one with an “air of reality.” These are not a rigid checklist: a genuinely arguable defence can carry the motion even where another factor is weak, and the court also weighs the prejudice to each side and the overall integrity of the process.
The common thread in both courts is the same: a real defence, a real explanation, and moving fast.
“Move fast” is the part people underestimate
Delay is the single most common reason these motions fail. Courts give defendants a generous benefit of the doubt, but unexplained months of silence undermine the whole request — Ontario’s Court of Appeal has upheld refusals to set aside where a defendant sat on the matter for months with no credible reason. In plain terms: the day you learn about a default judgment, the clock is running again. Treat it with the same urgency as the original 20-day deadline.
A strong defence can change the math entirely. If the debt was already too old to sue on when the claim was filed — Ontario’s basic limitation period is two years — that is exactly the kind of arguable, on-the-merits defence courts want to see. So is a genuine dispute over whether the plaintiff actually owns the debt, or over the amount claimed.
What to do this week
- Find the judgment and the date. Get a copy from the court file so you know which court, the amount, and when it was signed.
- Write down when and how you learned of it. Your explanation for the delay starts here.
- Do not pay or sign anything acknowledging the debt before getting advice — an acknowledgment can restart the limitation clock.
- Gather your defence. What is wrong with the claim? Wrong amount, wrong party, debt too old, never properly served, or already paid?
- Get a legal review before you file the motion. The motion materials — your affidavit especially — are where these cases are won or lost.
If you were never properly served in the first place, that is a distinct and often powerful argument. Courts treat a judgment obtained without proper service very differently from one where the defendant simply missed the deadline.
FAQ
How long do I have to set aside a default judgment in Ontario? There is no fixed number of days — the standard is “as soon as reasonably possible.” Practically, that means moving within days or weeks of learning about it, not months. Delay is the most common reason these motions are refused.
Will a garnishment stop while my motion is pending? Not automatically. You can ask the court to stay (pause) enforcement as part of your motion, but it is not guaranteed — another reason to act quickly.
Do I need a lawyer to bring the motion? You can bring it yourself, but the outcome turns on how well your affidavit explains the default and sets out your defence. A short legal review before filing often makes the difference.
Facing a judgment? Get it reviewed now.
A default judgment feels final, but in Ontario it often is not — if you act quickly and can show an arguable defence. Learn more about your options when you have been sued for debt in Ontario, and book a review of your situation so you do not lose the window to set it aside.
Sources: Rules of the Small Claims Court, O. Reg. 258/98, r. 11.06 (https://www.ontario.ca/laws/regulation/980258); Rules of Civil Procedure, R.R.O. 1990, Reg. 194, r. 18.01 and r. 19 (https://www.ontario.ca/laws/regulation/900194); Mountain View Farms Ltd. v. McQueen, 2014 ONCA 194 (https://www.canlii.org/en/on/onca/doc/2014/2014onca194/2014onca194.html); Small Claims Court, Ministry of the Attorney General (https://www.ontario.ca/document/guide-procedures-small-claims-court); Ontario Small Claims Court $50,000 limit, effective Oct 1, 2025 (https://news.ontario.ca/en/release/54269/ontario-making-it-faster-easier-more-affordable-to-settle-small-claims).
General information for Ontario, not legal advice. Reviewed by Angelos Spingos. Last reviewed September 17, 2026.