Definition
A default judgment is a court order to repay a debt in which the defendant fails to appear or to contest the plaintiff’s claims.
Analysis
Many debtors ignore a court summons and hope the problem will just go away. In fact, they may be leaving themselves very vulnerable to adverse legal action.
A judgment may be rendered into that favors the plaintiff and fails to provide any protection for the debtor. A debtor might have special circumstances that could be taken into account for the decision. The only way for the court to understand the situation is to appear in court and present the facts.
By ignoring a summons, a default judgment may be rendered where a debtor may be forced to repay the debt, often at new terms that are unfavorable to the debtor. Additionally, it may be more difficult to appear the decision if a default judgment was rendered.
