[vox_mollis]

Then you're pretty fucked for a long time

Depending on amount owed, this may not be true. Any unsecured default under ~$10k, the only consequences are usually a credit report hit and incessant calls from debt collector call center workers.

Over ~$10k, and yes, you're talking attorneys, judgments, garnishments, etc.

[FireBeyond]

Hah. I got divorced. I got served a while back over a joint debt that got overlooked. The principal was $1,050.

The firm had also tacked on $2,000 in "preparation and legal costs, filing fees". Which is pretty rich for what likely amounted to a mail merge in Word. But it's no coincidence that most collection firms are owned by lawyers.