Rising credit delinquencies and living costs drive a sharp increase in debt collection lawsuits, overwhelming consumers who often fail to respond.
Debt collectors are securing default judgments in 70% of lawsuits, as most defendants do not appear in court. The trend follows a post-pandemic surge in filings, with Missouri seeing cases nearly triple since 2019.
Household debt has reached $19 trillion, while credit card delinquencies and living costs climb. Only Virginia reported fewer debt lawsuits in 2025 compared to 2019, highlighting a nationwide rise in legal actions.
Default judgments can lead to severe consequences, including wage garnishment or asset seizures. Many consumers remain unaware of the legal process or their rights, exacerbating the issue.