Motion to Set Aside / Vacate Default Judgment (Debt Collection) - Iowa (Iowa R. Civ. P. 1.977)

IN THE IOWA DISTRICT COURT FOR [____________] COUNTY

Case No. [____________]

DEFENDANT'S MOTION TO SET ASIDE / VACATE DEFAULT JUDGMENT AND TO STAY EXECUTION AND GARNISHMENT

Filed Pursuant to Iowa R. Civ. P. 1.977

COMES NOW the Defendant, [____________] ("Defendant"), appearing [☐ pro se / ☐ by and through undersigned counsel], and respectfully moves this Court, pursuant to Iowa R. Civ. P. 1.977, to set aside the default and the default judgment entered against Defendant, and to stay any execution or garnishment pending the Court's ruling. In support, Defendant states:

I. INTRODUCTION AND RELIEF SOUGHT

1. This is a consumer debt-collection action. Plaintiff is [☐ the original creditor / ☐ a debt buyer / ☐ a collection agency] alleging that Defendant owes [$____________] on an alleged [credit-card account / loan / open account / other: ____________].

2. The clerk/court entered a default against Defendant on [__/__/____] and a default judgment on [__/__/____] in the amount of [$____________], plus interest, costs, and fees (the "Default Judgment").

3. Defendant moves to set aside the default and Default Judgment because [☐ it is VOID for defective service / lack of personal jurisdiction; ☐ Defendant's failure to defend was the result of mistake, inadvertence, surprise, excusable neglect, or unavoidable casualty; ☐ the Default Judgment was procured by irregularity or fraud (R. 1.1012)], and because Defendant has a meritorious defense (Section V).

4. This Motion is supported by the accompanying Affidavit of Defendant, the proposed Answer attached hereto, and the records and files in this action.

II. THE DEFAULT JUDGMENT TO BE SET ASIDE

5. Identify the Default Judgment:

6. This Motion is timely because it is filed promptly after discovery of the grounds and within 60 days after entry of the Default Judgment, as required by Iowa R. Civ. P. 1.977.

III. LEGAL STANDARD

7. Rule 1.977 — within 60 days. Iowa R. Civ. P. 1.977 authorizes the Court, "[o]n motion and for good cause shown, and upon such terms as the court prescribes, but not ex parte," to set aside a default or the judgment thereon "for mistake, inadvertence, surprise, excusable neglect or unavoidable casualty." The motion "must be filed promptly after the discovery of the grounds thereof, but not more than 60 days after entry of the judgment." Iowa courts liberally construe the rule to allow trials on the merits and resolve doubts in favor of setting aside a default, but the 60-day limit is jurisdictional in effect and strictly enforced.

8. Good cause; meritorious defense. "Good cause" is a sound, effective, and truthful reason — something more than an excuse, plea, apology, or extenuation. The movant must show that the default was not the result of a failure to prevent it through reasonable diligence, and ordinarily must show a meritorious defense to the underlying claim so that setting aside the default would serve some purpose.

9. After 60 days — Rule 1.1012/1.1013. Upon a timely petition filed and served within one (1) year after entry (Iowa R. Civ. P. 1.1013), the Court may vacate or modify a judgment for grounds including irregularity or fraud in obtaining it, erroneous proceedings against a minor or person of unsound mind, unavoidable casualty or misfortune preventing the party from defending, and material evidence newly discovered that could not have been discovered before trial (Iowa R. Civ. P. 1.1012). The petitioner must also show a meritorious defense.

10. Void judgments. A judgment entered without valid service of the Original Notice / without personal jurisdiction over the defendant is void. A void judgment may be challenged and set aside, and the 60-day limit of Rule 1.977 does not validate a judgment that the Court had no jurisdiction to enter.

IV. GROUNDS FOR SETTING ASIDE THE DEFAULT JUDGMENT

☐ Ground 1 — The Default Judgment Is Void: Defective Service / No Personal Jurisdiction (Iowa R. Civ. P. 1.302–1.305; 1.421(1)). Defendant was never validly served with the Original Notice and Petition. Specifically: [☐ Defendant never received the Original Notice; ☐ service was attempted at an address where Defendant did not reside; ☐ "sewer service" — the return of service is false; ☐ service was left with a person not authorized to accept it; ☐ Defendant was not subject to personal jurisdiction in Iowa]. Because service was defective, the Court never acquired personal jurisdiction and the Default Judgment is void.

☐ Ground 2 — Mistake, Inadvertence, Surprise, Excusable Neglect, or Unavoidable Casualty (Iowa R. Civ. P. 1.977). Defendant's failure to defend resulted from [☐ a mistaken belief the matter had been resolved / disputed with the collector; ☐ illness, hospitalization, or family emergency (unavoidable casualty); ☐ confusion about the deadline or the documents; ☐ non-receipt of papers due to relocation; ☐ reliance on assurances from Plaintiff or its agent]. There is good cause to set aside the default, and the default was not due to a failure to exercise reasonable diligence.

☐ Ground 3 — Meritorious Defense (see Section V). Defendant has one or more meritorious defenses, set forth in Section V and the attached proposed Answer, so that setting aside the default will serve a purpose and permit a decision on the merits.

☐ Ground 4 — Irregularity or Fraud in Obtaining the Judgment (Iowa R. Civ. P. 1.1012(1)-(2)) [if proceeding after 60 days by petition]. The Default Judgment was obtained by [☐ irregularity in the proceedings; ☐ a false return of service; ☐ a false or "robo-signed" affidavit of debt / amount; ☐ concealment of payment, settlement, or the true owner of the debt; ☐ suing the wrong person].

☐ Ground 5 — Newly Discovered Material Evidence (Iowa R. Civ. P. 1.1012(6)) [petition]. Material evidence that could not, with reasonable diligence, have been discovered and produced at trial: [____________].

V. MERITORIOUS DEFENSE (DEBT-SPECIFIC)

11. Defendant has the following meritorious defense(s). Select only those supported by the facts; each, if proved, would defeat or reduce Plaintiff's recovery:

☐ (a) Statute of Limitations. Plaintiff's claim is time-barred. In Iowa, an action on an unwritten contract or open account (and any other action not otherwise provided for) must be commenced within five (5) years (Iowa Code § 614.1(4)); an action on a written contract within ten (10) years (Iowa Code § 614.1(5)(a)). For sale-of-goods claims, Iowa courts apply the five-year period in § 614.1(4), with accrual governed by § 554.2725. The alleged debt accrued more than the limitations period before suit was filed.

☐ (b) Mistaken Identity / Wrong Defendant / Identity Theft. Defendant is not the person who incurred the alleged debt, or the account is the product of identity theft. [Attach FTC Identity Theft Report / police report if applicable.]

☐ (c) Wrong Amount / Unauthorized Fees / Interest. The amount of the Default Judgment is incorrect, inflated, or includes interest, fees, or charges not authorized by any agreement.

☐ (d) Paid, Settled, or Discharged. The alleged debt has been paid, settled, released, or discharged (including by discharge in bankruptcy), in whole or in part.

☐ (e) Lack of Standing / No Proof of Assignment. Plaintiff is not the original creditor and has not proven a complete, unbroken chain of assignment of Defendant's specific account. Plaintiff is not the real party in interest.

☐ Potential separate FDCPA claim—not by itself a defense that the debt is invalid. If a qualifying debt collector failed to provide the notice or verification required by 15 U.S.C. § 1692g, Defendant may have a separate civil claim under 15 U.S.C. § 1692k. A formal pleading is not an “initial communication” under § 1692g(d). Plead such a claim only if procedurally permitted, and evaluate any state-law issue separately.

☐ (g) Failure to File Required Debt-Collector Notification (Iowa Code § 537.6201). To the extent Plaintiff or its assignor was required to file the annual debt-collector notification with the Iowa Attorney General and failed to do so, Plaintiff has not complied with Iowa law. [verify current notification threshold and Plaintiff's status.]

☐ (h) No Account Stated / Inadmissible Records. Defendant never agreed to the balance alleged, and Plaintiff's account records and affidavits are inadmissible hearsay lacking foundation (Iowa Code § 622.28; Iowa R. Evid. 5.803(6)).

12. A proposed Answer asserting these defenses is attached as Exhibit [__] and is tendered so the action may proceed on the merits.

VI. AFFIDAVIT OF DEFENDANT IN SUPPORT OF MOTION

STATE OF IOWA )
COUNTY OF [____________] )

I, [____________], being first duly sworn, depose and state:

1. I am the Defendant in this action and I make this affidavit on personal knowledge. If called as a witness, I could competently testify to the facts stated herein.

2. The first time I learned of this lawsuit and/or the default judgment against me was on [__/__/____], when [☐ my wages were garnished / ☐ my bank account was garnished / ☐ I received a court notice / ☐ other: ____________].

3. Regarding service of the Original Notice and Petition: [describe — e.g., "I was never served," "I do not and did not live at the address listed on the return of service," "the papers were left with a person not authorized to accept service for me"]: [____________________________________].

4. The reason I did not appear or file an answer before the default was entered is: [____________________________________].

5. I filed this Motion promptly after discovering the grounds, and within 60 days after entry of the judgment. The facts supporting my meritorious defense(s) are: [____________________________________].

6. I am prepared to file the attached proposed Answer and to defend this action on its merits if the default and Default Judgment are set aside.

I declare under penalty of perjury and pursuant to the laws of the State of Iowa that the foregoing is true and correct.

Dated: [__/__/____].

/s/ [____________________________________]
[Printed name]

SUBSCRIBED AND SWORN to before me this [____] day of [____________], 20[____].

____________________________________
Notary Public in and for the State of Iowa
My commission expires: [__/__/____]

VII. REQUEST TO STAY EXECUTION AND GARNISHMENT

13. Defendant requests that the Court stay execution of the Default Judgment, including any general execution and any wage or bank garnishment, pending the Court's ruling on this Motion, and quash or release any garnishment already issued. Continued collection on a judgment that is void or subject to being set aside would cause Defendant irreparable harm, including loss of wages and exempt funds.

14. ☐ A garnishment of Defendant's [☐ wages / ☐ bank account] is currently in effect. Defendant requests that it be stayed and that any withheld funds be held by the clerk (and not turned over to Plaintiff) pending the ruling, or returned to Defendant if the Default Judgment is set aside.

VIII. RELIEF REQUESTED

WHEREFORE, Defendant respectfully requests that this Court:

A. SET ASIDE the default and VACATE the Default Judgment entered on [__/__/____] pursuant to Iowa R. Civ. P. 1.977 [☐ and/or Iowa R. Civ. P. 1.1012/1.1013];

B. STAY execution of the Default Judgment and QUASH / RELEASE any execution or garnishment, and order any withheld funds held by the clerk or returned to Defendant;

C. GRANT Defendant leave to file the attached proposed Answer and to defend this action on the merits;

D. To the extent the Default Judgment is found VOID for defective service or lack of personal jurisdiction, declare it void and of no effect; and

E. Grant such other and further relief as the Court deems just and proper.

A proposed Order is submitted herewith.

IX. SIGNATURE

Respectfully submitted this [____] day of [____________], 20[____].

/s/ [____________________________________]
[____________________________________]
☐ Defendant, pro se ☐ Attorney for Defendant
Iowa Attorney No. (if attorney): [____________]
[Street Address]
[City], Iowa [____]
Telephone: ([____]) [____]-[________]
Email: [____________________________________]

X. CERTIFICATE OF SERVICE

I hereby certify that on the [____] day of [____________], 20[____], I served a true and correct copy of the foregoing Motion to Set Aside / Vacate Default Judgment, the supporting Affidavit, the proposed Answer, and the proposed Order upon Plaintiff's counsel of record (or upon Plaintiff, if unrepresented) by the following method (this Motion is not made ex parte, per Iowa R. Civ. P. 1.977):

☐ Iowa Electronic Document Management System (EDMS) (notice to all registered filers)
☐ U.S. First-Class Mail, postage prepaid
☐ Certified Mail, Return Receipt Requested
☐ Hand Delivery
☐ Email (per Iowa R. Civ. P. 1.442)

Addressed to:

[____________________________________]
[____________________________________]
[____________________________________]

/s/ [____________________________________]
[____________________________________]

IOWA PRACTICE NOTES

• Authority / deadline: Iowa R. Civ. P. 1.977 — set aside a default or default judgment "for mistake, inadvertence, surprise, excusable neglect or unavoidable casualty," on motion (not ex parte) filed promptly after discovery and not more than 60 days after entry. The 60-day limit is strictly enforced, even where the defendant claims no notice until garnishment (In re Marriage of Draker-Falcon, Iowa Ct. App. 2017). Calendar the date.
• After 60 days: Use a petition to vacate under Iowa R. Civ. P. 1.1012 (irregularity/fraud; proceedings against minor/incompetent; unavoidable casualty; newly discovered evidence), filed and served within one (1) year of entry (Iowa R. Civ. P. 1.1013).
• Good cause / meritorious defense: "Good cause" requires a sound, truthful reason — more than an excuse — and ordinarily a showing of a meritorious defense. Tender a proposed Answer.
• Void service: A judgment entered without valid service of the Original Notice / personal jurisdiction is void; the 60-day rule does not cure a jurisdictional defect.
• Court: Iowa District Court (consumer debt often in the Small Claims Division, Iowa Code ch. 631). Verify the division/county in the judgment.
• Stay: Move to stay execution and to quash/release any garnishment (Iowa Code ch. 626, ch. 642; § 537.5105); statutory exemptions apply.

Sources and References

• Iowa R. Civ. P. 1.977 (set aside default / default judgment; 60-day limit; not ex parte) — Iowa Court Rules ch. 1: https://www.legis.iowa.gov/docs/ACO/CourtRulesChapter/1.pdf
• Iowa R. Civ. P. 1.1012 (grounds for vacating/modifying judgment) & 1.1013 (one-year petition deadline): https://www.legis.iowa.gov/docs/ACO/CourtRulesChapter/1.pdf
• In re Marriage of Draker-Falcon, No. 16-0996 (Iowa Ct. App. May 17, 2017) (60-day limit strictly enforced despite claimed lack of notice): https://www.iowacourts.gov/courtcases/
• Champion Contractors & Servs.-Commercial, LLC v. Dimensions Senior Living, No. 24-0493 (Iowa Ct. App. July 23, 2025) (setting aside default judgment; void / personal-jurisdiction analysis): https://law.justia.com/cases/iowa/court-of-appeals/2025/24-0493.html
• Iowa Code § 614.1(4) (5-year unwritten/open account and sale-of-goods period) / § 614.1(5)(a) (10-year written) / § 554.2725 (sale-of-goods accrual): https://www.legis.iowa.gov/docs/code/614.1.pdf
• Iowa Code §§ 537.7101–.7103 (Iowa Debt Collection Practices Act); § 537.6201 (debt-collector notification); § 537.5105 (garnishment limits): https://www.legis.iowa.gov/docs/ico/chapter/537.pdf
• Iowa Judicial Branch — Collecting a Judgment (execution / garnishment): https://www.iowacourts.gov/for-the-public/representing-yourself/collecting-a-judgment
• Fair Debt Collection Practices Act, 15 U.S.C. § 1692 et seq.: https://www.ftc.gov/legal-library/browse/rules/fair-debt-collection-practices-act-text