I was summons on a car loan debt.
I was summon on car loan debt and called the company about settling. They wouldn't give me anything in writing and told me not to worry about the summons. I wrote a letter to the court that we were negotiating with the company. I sent a copy to them and the court. Now the company won't settle for a reasonable amount. My question is am I now in default.
1 attorney answer
Most likely you were in default of the loan before you got the summons. The creditor would not have sued you if you were not in default on the loan. To find out if a default judgment was entered against you call the court and ask. Then get an answer filed with the court as soon as possible if there is no default judgment. If a default judgment has been entered, you might be able to get it set aside by filing a motion to set aside default judgment stating good reasons why you did not comply with the summons. Keep in mind that the creditor has no obligation to settle for a "reasonable" amount. The creditor is entitled by law to receive everything that the loan agreement requires -assuming the loan agreement was not fraudulent or otherwise unenforceable.