Rule 7055 Default; Default Judgment

When one side in a bankruptcy court lawsuit does not respond or participate, the other side can ask the court to rule in their favor automatically. This is called a default or default judgment.

Federal Rule of Civil Procedure 55 covers how this process works, and that rule applies directly to adversary proceedings in bankruptcy court. An adversary proceeding is a lawsuit filed inside a bankruptcy case, such as when someone sues to recover money or dispute a debt.

If you are sued in a bankruptcy adversary proceeding and you do not respond in time, the other party can request a default against you. After that, they can ask the court for a default judgment, which means they win without a full trial. To avoid this, you must respond to any lawsuit filed against you in bankruptcy court by the deadline given.