What Happens When You Ignore a Debt Collector Lawsuit?

Ignoring a lawsuit of any kind is never a good idea but ignoring a debt collection lawsuit could have significant negative consequences.  Failing to file a timely answer or failing to appear at a pre-trial conference in a small claims matter will result in a default judgment against you.  You lose the opportunity  to  raise  possible  defenses  or  negotiate  a  settlement for  a

reasonable payment plan.​  Once a judgment is entered against you on a debt, interest begins accruing on the amount until it is paid off in full.  The creditor is entitled to receive financial documents and information from  you  to  include  bank account  statements, paystubs, credit applications, copies of vehicle registrations and anything else pertaining to your assets and income.  The creditor will then use the information to garnish your paycheck, attach your bank account and even seize and sell your vehicles.  The worst part is that these enforcement actions usually occur when you least expect them to occur and at the worst possible time.  Accordingly, whether you respond to the lawsuit yourself or hire an attorney to handle all the details for you, it is best not to ignore the summons.  Proactively responding to the lawsuit could possisbly save you a great deal of money and time.​​