[MN] Do I still need to respond to a summons after agreeing to a payment plan with the creditor?

MN Legal (General)

Lori

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You’re in a very common situation, and the answer depends on one key thing: Until the settlement is signed and filed with the court, you still must answer the summons. Here’s why:

A phone agreement is not legally binding yet. (MN Stat § 481.08) Right now, what you have is:
- A verbal agreement
- A promise that a stipulation (settlement agreement) will be mailed to you
- Courts don’t recognize verbal settlements. If you don’t file an Answer and the creditor doesn’t file the settlement with the court, the court can still enter a default judgment against you.
Minnesota courts don’t pause the lawsuit just because you’re negotiating. In Anoka County (and all MN district courts), the lawsuit continues unless:
- You file an Answer, or
- The creditor files a stipulation of settlement/dismissal with the court
- Until one of those happens, the clock is still ticking.
If you don’t answer, they can still get a judgment. Even if you’re making payments, if the settlement isn’t finalized in writing and filed, the creditor can: (MN Stat § 549.09)
- Get a default judgment
- Garnish wages
- Freeze bank accounts
- Add interest and fees. You don’t want that.

What you should do right now:

File an Answer before your deadline. This protects you. Your Answer can be simple:
- Admit what’s true
- Deny what you disagree with
- Ask for proof
- State that you are “currently negotiating settlement”
- This keeps the case alive and prevents a default.
Wait for the written stipulation or ask for extension of time to file an Answer. (Which allows for you to sign the stipulation and not file an Answer) Once you receive it:
- Read it carefully
- Make sure the payment terms match what was said
- Make sure it says the case will be dismissed upon completion
- Make sure no judgment is entered unless you default
After you sign, the creditor usually files it with the court. Once filed, the lawsuit is paused or dismissed depending on the agreement.

What if the stipulation arrives before your Answer is due?
If you receive it in time and it’s filed with the court, you may not need to file an Answer. But until that happens, you must assume you still need to answer.

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I spoke with the lawyers for the bank and settled to do a payment plan for my debt I owe, do I still have to answer the summons?

Lexi, Chatbot

I understand that dealing with debt and legal summons can be stressful. Have you already received a court date for the summons?

No.

Lexi, Chatbot

What specific terms were agreed upon in your payment plan with the bank?

On the phone we spoke about paying $391 for 12 months on the debt I owe of $4,687.78, and that the stipulation will be mailed out to me to sign.

Lexi, Chatbot

Is there anything else the lawyer should know before I connect you? Rest assured they'll be able to help with your summons response.

I don't know.

Lori

Hello. I look forward to assisting you.

What state are you in?
Did you receive any written confirmation of the payment plan yet?

I live in Minnesota, Anoka County, and I haven’t gotten a written confirmation yet.

Lori

Understood. Thanks for the information. Please give me some time to review/do some research and to draft my personalized response. I will get back to you as soon as possible.

Ok I did mention to them that I will go in person to deliver the money order today, and the person told me to ask if a stipulation is ready to sign when I get there.

Lori

You’re in a very common situation, and the answer depends on one key thing: Until the settlement is signed and filed with the court, you still must answer the summons. Here’s why:

A phone agreement is not legally binding yet. (MN Stat § 481.08) Right now, what you have is:
- A verbal agreement
- A promise that a stipulation (settlement agreement) will be mailed to you
- Courts don’t recognize verbal settlements. If you don’t file an Answer and the creditor doesn’t file the settlement with the court, the court can still enter a default judgment against you.
Minnesota courts don’t pause the lawsuit just because you’re negotiating. In Anoka County (and all MN district courts), the lawsuit continues unless:
- You file an Answer, or
- The creditor files a stipulation of settlement/dismissal with the court
- Until one of those happens, the clock is still ticking.
If you don’t answer, they can still get a judgment. Even if you’re making payments, if the settlement isn’t finalized in writing and filed, the creditor can: (MN Stat § 549.09)
- Get a default judgment
- Garnish wages
- Freeze bank accounts
- Add interest and fees. You don’t want that.

What you should do right now:

File an Answer before your deadline. This protects you. Your Answer can be simple:
- Admit what’s true
- Deny what you disagree with
- Ask for proof
- State that you are “currently negotiating settlement”
- This keeps the case alive and prevents a default.
Wait for the written stipulation or ask for extension of time to file an Answer. (Which allows for you to sign the stipulation and not file an Answer) Once you receive it:
- Read it carefully
- Make sure the payment terms match what was said
- Make sure it says the case will be dismissed upon completion
- Make sure no judgment is entered unless you default
After you sign, the creditor usually files it with the court. Once filed, the lawsuit is paused or dismissed depending on the agreement.

Ok, thank you for your time.

Lori

You are welcome. Thank you for allowing me to assist you today. Have a nice day!

Lori

25,625 satisfied customers

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