Do I have to respond to a lawsuit for a debt that I owe?

You are not required to file an Answer unless you want to fight the lawsuit. The main reason to fight a lawsuit is if you have a legal defense or disagree with some aspect of it. If you do nothing, the creditor will get a default judgment. This means the creditor wins because you didn’t respond. But, if all your income and assets are exempt, the creditor cannot collect. 

Your money may be exempt (protected) from collection if you get Social Security, veteran’s benefits, a pension, or public benefits. Your wages are protected if your net weekly earnings are less than 40 x the state minimum wage or about $1,520 a month. See our fact sheet, Garnishment and Your Rights.  

You may have to take steps to protect your money. Make sure you open all your mail. If you receive a notice of garnishment, you may need to fill out a garnishment exemption form. The court may also require you to complete a financial disclosure form. You can see sample wage and bank garnishment exemption forms in the Dealing with Debt booklet.