Miranda McWhorter, from The Secret Lives of Mormon Wives, faced a $12,849 default judgment from Discover Bank over unpaid credit card debt. Ignoring lawsuits can lead to wage garnishment or property liens. Debt collection lawsuits in the U.S. have surged to 4.7 million cases per year.

Failure to respond to debt lawsuits results in default judgments, making negotiations harder and more expensive. Creditors are using AI to identify overdue accounts and file lawsuits quickly. Consumer debt is rising due to inflation and interest rates. McWhorter’s case highlights the common financial stress faced by many.

Responding to lawsuits is crucial to preserving rights and preventing automatic judgments. Communicate with creditors early to explore payment options. Debt consolidation can reduce monthly payments and prevent delinquency. Seek help from professionals if debt becomes unmanageable. Open mail, respond promptly, and seek help before court involvement.

Read more at Yahoo Finance: ‘Mormon Wives’ star Miranda McWhorter’s $12,849 credit card mistake. Here’s how to avoid the same trap