Understanding Default Judgments in Debt Collection Lawsuits

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Why do most people get default judgments?

If you are sued for a debt, it’s important to understand what could happen if you don’t respond. One of the most common outcomes in these cases is called a default judgment.

What is a Default Judgement?

When you are served with court papers, you usually have 30 days to respond. If you don’t file a response or show up in court, the creditor can ask the judge to issue a default judgment. This means the court automatically rules in favor of the creditor because no defense was presented.

What Happens After a Default Judgment?

A judgment gives the creditor legal rights to collect the debt. In California, judgments are valid for 10 years and can be renewed for another 5 years. During this time, interest continues to add up.

Once a judgment is entered, creditors can use stronger collection methods, such as:

  • Wage garnishments – taking money directly from your paycheck
  • Bank levies – taking funds directly from your bank account
  • Property liens – placing a claim on your home or other property

These collection tools can have long-lasting effects on your financial stability.

Why It Matters

Default is rarely a good option. Even if you owe some or all of the debt, responding to the lawsuit gives you the opportunity to:

  • Verify the debt is accurate
  • Raise any legal defenses you may have
  • Work toward a possible settlement

By taking action, you keep your rights in the case and avoid an automatic loss.