you should either set it aside or try to work out a plan. If there are no defenses then it is just delaying the inevitable.
This is just my opinion and not a comprehensive answer. You assume the risk because this answer may not apply to your situation depending on the facts.
If you do nothing, then you will likely have a default judgment entered against you. However, they will have a difficult time collecting the judgment.
You can make a motion to set aside the default so that you can file an Answer or General Denial. That is probably the best course of action. At least it will give you closer to a year to figure out what to do, since the trial might not be for another year.
The information presented here is general in nature and is not intended, nor should be construed, as legal advice. This posting does not create any attorney-client relationship with the author (who is only admitted to practice law in the State of California). For specific advice about your particular situation, consult your own attorney.
The court will will enter a default judgment eventually as it appears that you have failed to respond to the summons and complaint and the plaintiff is requesting a default entry. If you owed the money then allowing a default is ok, but if you claim you do not owe the money the you should file an answer with the court even if it is late filed.
If you don't have the money to pay your options are:
1. Offer to settle for less.
2. Make a claim of exemption when you receive a notice of levy.
you can try to set aside the judgment pursuant to code of civil procedure sections 473 or 473.5 depending on the circumstances of your case and/or try to negotiate a payment plan. Do not allow them to get a uncontested judgment if you can because most of these companies especially purchased debt buyers will fold if discovery is served requesting the original terms and conditions, application, statements and the assignments. Good luck.