General information only — not legal advice, and not written by a lawyer.
If you are sued and you do not respond, the court could issue a judgment against you. This is sometimes called a “default judgment.”
The case is decided without your side being heard.
It happens in plain steps:
When you respond to the lawsuit, a debt collector has to prove to the court that the debt is valid.
Responding does NOT mean you agree that you owe the debt.
If you owe it, responding may also open the door to a settlement or other resolution.
Refusing to accept delivery (“service”) of the lawsuit is unlikely to defend you.
The court could view it as ignoring a properly served lawsuit.
This section is about the federal rule only. It is Rule 55 of the Federal Rules of Civil Procedure, for cases in federal court.
Step 1, entry of default: When a party against whom a judgment is sought has failed to plead or otherwise defend, and that failure is shown by affidavit or otherwise, the clerk must enter that party's default (Rule 55(a)).
Step 2, the judgment: If the claim is for a sum certain (a fixed amount, or an amount that can be made certain by computation), the clerk — on the plaintiff's request, with an affidavit showing the amount due — must enter judgment for that amount and costs against a defendant who was defaulted for not appearing and who is neither a minor nor an incompetent person (Rule 55(b)(1)).
In all other cases, the party must apply to the COURT for the default judgment. The court may hold hearings when it needs to conduct an accounting, determine the amount of damages, establish the truth of any allegation by evidence, or investigate any other matter (Rule 55(b)(2)).
One protection in the federal rule: If the party being defaulted HAS appeared in the case, personally or by a representative, that party must be served with written notice of the application at least 7 days before the hearing (Rule 55(b)(2)). The “7 days” number is the federal rule's number.
Another protection: A default judgment may be entered against a minor or an incompetent person only if that person is represented by a general guardian, conservator, or other like fiduciary who has appeared (Rule 55(b)(2)).
In debt cases, it is likely the judgment will be for the amount the creditor or debt collector claims you owe, plus lawful additional fees — collection costs, interest, and attorney fees as allowed by the judgment.
A judgment gives collectors much stronger tools. Depending on your situation and your state's laws, the creditor may be able to garnish your wages, place a lien against your property, or move to freeze funds in your bank account.
You may also lose the ability to dispute the debt.
Before any judgment: Respond by the deadline in your papers. You have a much better chance if you defend the case than if you wait until a judgment is entered. Before the court makes a judgment, you may also be able to negotiate a compromise or settlement with the debt collector.
After: Under the federal rule, the court may set aside an entry of default for good cause, and it may set aside a default judgment under Rule 60(b) (Rule 55(c)).
The honest warning: A judgment is a court order, so it can be very difficult to get it changed or set aside once the case is over.
State courts
Rule 55 governs FEDERAL courts. Most everyday lawsuits — including most debt-collection suits — are filed in STATE courts, which have their own default rules.
The shape is similar, but deadlines and steps differ from state to state.
The date printed on YOUR court papers is the one that rules.
Rule 55 of the Federal Rules of Civil Procedure (official text, uscode.house.gov); Consumer Financial Protection Bureau, Ask CFPB: “What should I do if I'm sued by a debt collector or creditor?” (consumerfinance.gov).
General information only — not legal advice, and not written by a lawyer.