The judge or jury decides what the facts are, and the judge decides who wins. If you do not defend, you will lose by default. Garnishment proceedings may be filed against you. Also, if you earn less than 30 times the minimum hourly wage per week, your wages are not subject to garnishment. The judgment can last until it is paid.
Interest is added to the amount of judgment.
Some options include working out agreements to pay your debts back over a period of time, taking out a new loan to pay back existing debts, and bankruptcy. Also, there are some consumer credit counseling agencies that may be able to help you. Bankruptcy is a formal court proceeding. It is quite complicated. The result is that most debts are canceled.