You should always answer the lawsuit even if you intend to settle because it gives you time to make the best deal. It's also important to find out what evidence the creditor has before you decide to settle and for how much. There may not be much evidence making it possible to defeat the suit. You need to consult an attorney.
This comment is given for educational purposes only. No attorney-client relationship exists between us.
You should answer the lawsuit. This way if you contact the Plaintiff to settle and the settlement talks don't go well, you are still compliant with the answer deadline.
Steven A. Jayson, Esq. www.jaysonlawgroup.com Office 908-258-0621 DISCLAIMER: THE ABOVE INFORMATION IS NOT LEGAL ADVICE. THIS IS GENERAL INFORMATION AND LAWS VARY FROM STATE TO STATE. PLEASE CHECK WITH A LOCAL ATTORNEY OR CONTACT THE IRS OR STATE TAXING AUTHORITY WITH ANY QUESTIONS.