Legal Question in Credit and Debt Law in California

If you don't answer the lawsuit, the bank will obtain a default judgment against you, and interest will be added on at either the agreed rate or 10 percent per year simple interest. Then, once you find work or have money in the bank, the creditor could attach your wages and bank account. People often work things out with the creditor that might discount the amount owed if done early enough. Depending on your other debts, you might take a look at bankruptcy as an option that, most likely, would discharge this $4,000+ debt.