This website uses cookies to ensure you get the best experience on our website. Learn more

Got it!

default

A default is a failure to fulfill an obligation . Defaulting is most common in regards to debtor-creditor law and contract law. Typically, a default leads to judicial proceedings or triggers the application of a separate contract provision. 

• For example, a homeowner might go into default by failing to make scheduled mortgage  payments.
  • This default allows the creditor to begin foreclosure proceedings and repossess the house subject to the mortgage.

 

In the field of civil procedure , default can also refer to a default judgment . 

[Last reviewed in September of 2022 by the Wex Definitions Team
]

Wex

• ACADEMIC TOPICS

• law and economics

• COMMERCE

• commercial activities

• banking

• finance

• LIFE EVENTS

• financial events

• bankruptcy

• mortgages

• property & real estate law

• THE LEGAL PROCESS

• courts

• legal practice/ethics

• wex articles

• business law

• commercial law

• contracts

• corporations

• wex definitions

• business sectors

• civil procedure

• commercial transactions

• courts and procedure

• property law

• money and financial problems