What Happens If You Get Sued in Small Claims and Ignore It?
Ignoring a small claims lawsuit doesn't make it disappear — it turns a dispute you might have won into a guaranteed loss with collection powers attached.
"Got served papers for small claims court. I don't have the money to pay what they're claiming and I just want to ignore it and hope it goes away. What actually happens if I just don't show up?"
One of r/legaladvice's most-repeated defendant questions — asked hundreds of times with the same dangerous assumption that nothing will happen. The top answers are split between "you'll get a default judgment" and "they can't do anything." One of those is correct.
View discussions on RedditThe Short Answer: You Automatically Lose
When you're served with a small claims summons and don't appear at the hearing, the judge enters a default judgment against you. No evidence is reviewed, no defenses are heard. The plaintiff wins by default.
That judgment is a court order saying you owe money. And unlike a dispute you could have argued, this one comes pre-packaged with enforcement tools.
Most states give the plaintiff 10 years to collect a judgment — and many allow renewal. A $1,200 judgment you ignore today can follow you for a decade, accruing interest at 5–10% per year.
What Happens, Step by Step
| Step | What Happens | Your Status |
|---|---|---|
| 1. Served | You receive the summons and complaint | Clock starts — response deadline set |
| 2. You don't appear | Hearing proceeds without you | No defense presented |
| 3. Default judgment | Judge awards plaintiff the amount claimed (plus interest) | You legally owe the money |
| 4. Collection begins | Plaintiff files for garnishment, levy, or lien | Wages, bank accounts, or property at risk |
| 5. Credit report | Judgment may appear as public record | Credit score impact |
How They Collect Without Your Help
Once a judgment is entered, the plaintiff becomes a judgment creditor — and they have legal tools to take money directly without asking you.
Court orders your employer to withhold up to 25% of your disposable pay each paycheck and send it directly to the plaintiff. Federal law (15 U.S.C. § 1673) caps it at 25%, but it starts immediately once the order is issued.
The plaintiff gets a writ of execution, serves it on your bank, and the bank freezes and transfers funds from your account. You often don't know until your account is empty.
In most states, a judgment automatically creates a lien on any real property you own. You can't sell or refinance until the lien is paid. This can last 10+ years.
Federal law (15 U.S.C. § 1674) prohibits employers from firing an employee because their wages are being garnished for a single debt. But protection disappears for a second garnishment order.
The Judgment Grows Over Time
Judgments in most states accrue post-judgment interest from the date they're entered. The rate varies by state and is set by statute:
| State | Post-Judgment Interest Rate | Statute |
|---|---|---|
| California | 10% per year | CCP § 685.010 |
| Texas | Prime rate + 1% (varies) | TX Fin. Code § 304.003 |
| Florida | Set annually by CFO (recently ~8%) | FL § 55.03 |
| New York | 9% per year | NY CPLR § 5004 |
| Washington | 12% per year | RCW 4.56.110 |
$2,000 × 10% × 3 years = $600 in interest. Total owed: $2,600 — before any collection costs the plaintiff adds. California allows enforcement for 10 years, renewable for another 10 under CCP § 683.020.
Can You Get a Default Judgment Thrown Out?
Sometimes — but the window is narrow and the bar is higher than most people expect. Courts call this a motion to vacate, and you must typically show one of two things:
- You were never properly served (the summons never reached you)
- Excusable neglect — serious illness, hospitalization, family emergency
- The plaintiff filed in the wrong court or wrong jurisdiction
- Fraud or misrepresentation by the plaintiff
- "I forgot" or "I didn't think it was serious"
- You disagree with the amount
- You were busy with work
- You thought it would resolve itself
| State | Time to File Motion to Vacate | Authority |
|---|---|---|
| California | 30 days from notice of judgment | CCP § 116.730 |
| Texas | 14 days from judgment (default), or show no notice | TX R. Civ. P. 500.9 |
| Florida | Within a reasonable time, generally ≤1 year | FL courts.gov |
| New York | 1 year from judgment | NY CPLR § 5015 |
If the plaintiff served the wrong address, served someone who doesn't live with you, or didn't follow your state's service rules, the default judgment may be void — not just voidable. Courts take service requirements seriously because notice is a due process right.
What to Do If You've Been Served
You have options — but they require acting quickly. The moment you receive a summons, your clock starts.
Note the hearing date, time, courthouse, and case number. Also check whether you need to file a written response beforehand — some states require it, others don't.
Is the amount roughly correct? Do you owe this money? If yes, contacting the plaintiff to settle before the hearing often results in a reduced amount and avoids a judgment on your record.
Receipts, texts, contracts, photos — anything that supports your side. Courts hear both parties in one short session. Showing up organized matters.
If the plaintiff owes you money — they damaged your property, they owe you wages — you can file a counterclaim at or before the hearing. This lets you go on offense.
Even if you have no defense at all, appearing in court gives you a chance to negotiate a payment plan, reduce the judgment amount, or present mitigating facts. A judge has discretion. A default judgment has none.
If a Default Judgment Has Already Been Entered Against You
If you're still within your state's motion-to-vacate deadline and have a legitimate reason you didn't appear, file immediately. Check your state's court website for the correct form — most have a standard "Motion to Vacate Default Judgment."
Judgment creditors will often accept a lump sum below the full amount (especially if you're judgment-proof) or a structured payment plan. Get any settlement agreement in writing before you pay a cent.
If you have no income, no bank accounts, and no property, collection is difficult right now — but the judgment sits there accruing interest. If your financial situation improves, the plaintiff can restart collection efforts at any time within the enforcement period (often 10+ years).
Frequently Asked Questions
Does a small claims judgment show up on my credit report?
Can I be arrested for not paying a small claims judgment?
What if the amount they're claiming is wrong?
Can they take my car or home?
What if I owe the money but genuinely can't pay?
Related Resources
The plaintiff's perspective on default judgments — and how they get vacated.
Wage garnishment, bank levies, and property liens — the full enforcement toolkit.
Resolve disputes before they reach the courthouse with a properly structured demand letter.
See what it costs to file — and the limits on what can be claimed.
Sources
- U.S. Department of Labor — Wage Garnishment (15 U.S.C. § 1673, § 1674)
- California CCP § 116.730 — Motion to Vacate Small Claims Judgment
- California CCP § 685.010 — Post-Judgment Interest Rate
- California CCP § 683.020 — Judgment Enforcement Period
- Texas Rules of Civil Procedure Rule 500.9 — New Trial / Vacate
- Texas Finance Code § 304.003 — Post-Judgment Interest
- Florida § 55.03 — Judgment Interest Rate
- New York CPLR § 5004 — Post-Judgment Interest
- New York CPLR § 5015 — Relief from Judgment
- Washington RCW 4.56.110 — Judgment Interest Rate
- Consumer Financial Protection Bureau — Wage Garnishment and Bank Levy Explained
- USA.gov — Small Claims Court Overview
This article is for general informational purposes only and does not constitute legal advice. Laws vary by state and change over time. If you have received a summons or a judgment has been entered against you, consult a licensed attorney in your state.