Around 70% of Debt Lawsuits End in Default Judgments as Collectors Flood Courts

A recent report from the Pew Charitable Trusts reveals that approximately 70% of debt lawsuits in the U.S. result in default judgments, often because most defendants fail to appear in court. Debt collection lawsuits have surged since the pandemic, with Missouri seeing cases nearly triple from 2019 to 2025. Consequences for borrowers include wage garnishment, bank account seizures, and property liens. Fewer than 10% of defendants have legal counsel, though hiring a lawyer reduces the likelihood of a default judgment by over 90%. Some states, like Virginia and Washington, have passed laws requiring greater transparency in debt lawsuits and protecting consumers from aggressive collection tactics. The article highlights the financial strain on American households, which hold nearly $19 trillion in debt, and the challenges of navigating the legal system without representation.