Discover

Did you receive a summons? You need to verify with the clerk of the court that the judgement is valid, and if so, how the summons was served. What state are you in? Different states have different laws about what a creditor can do to enforce a judgement.

Guilford county, NC. and yes the sheriff dept delivered the summons and called the county clerks office.

If you received the summons, then that was your invitation. It told you the place and the time to appear. When you did not show up, the judge awarded a default judgement to the plaintiff. Your options are much more limited now. North Carolina is a non-garnishment state, so they cannot take money out of your paycheck. They can levy your bank accounts, and take what is there to satisfy the judgement. They can also put a lien on any assetts that you have, such as a car, or property.
Your best option now is to set up the payment plan. It sounds like they still want to work with you to get their money. But, if you do not have the money, you don't have it. I am not advocating that you should ignore this obligation. You still need to clear the matter up. But you need to take care of your own NEEDS first. If you have no assets, then there is not a lot they can do. They cannot take unemployment benefits. The only other option that I can see is to file bankruptcy, which may be overkill, depending on your entire situation.

Thanks,
Also i have a lien on my house as a 2nd mortgage and can they still get a lien on the house. I have a $2000 balance left on my car with my bank, can they still secure a lien on my car?
Had a $5000 original balance on my discover card and now the new bill is $10,000. This system is sort of "gotacha" moment here and not a fair process.

@ claudeman: You said you "replied to the court of not guilty". What do you mean by this? Did you serve and file an answer, and you just didn't receive anything further? Did you timely answer? If you timely served an answer and just didn't receive notice of a future court date and/or motion, you can have their judgment vacated. Go to your local court, and talk to the clerk. They will hopefully be nice enough to give you the correct form to fill out.

Thank you, thank you. I will be at the clerks office Monday. Yes, i replied of not guilty to the county clerk and the Discover Attorney's office the very next day i received the summons and heard nothing about any invite or date to come to court, anything.
Thanks again

@ Debtcc, went to the court clerk's office today and she pulled my file and said the court date was set for 08/11/09 and the plaintiff was suppose mail me the the court date and which he did not do.(nothing in the mail) so the Judge thinking i was invited and did not show up deceided to award the judgement to plaintiff. ( sounds like a setup to me). The clerk suggested for me to file a motion to the judge and that i needed an Attorney. Cannot afford one now, please any ideas.
claudeman.

There should be some kind of free legal aid in your area?