I live in California and I'm being sued for about $4,500 for unpaid negative balance fees on a checking account originally totaling $400, this may also include a credit card balance that came with the checking account but I'm not sure, I don't think I have any of my own records. The collection agency says this went into collections less then 2 years ago but I seriously doubt that, it has to be at least 3 years if not 4 but I'm not sure how to confirm this (the bank is Washington Mutual which is now Chase).
I just got the summons a few days ago but my question is what do they really want to accomplish here? About 2 weeks ago I was fired from my job so they can't garnish my wages but I do own 2 vehicles, one I just purchased a few months ago for $6,500 and the other vehicle was paid for long before I even opened that checking account and would probably sell for about $2000. My question is do I need to worry about having either of my vehicles repossessed at the end of this court case? Even tho both cars were paid for in cash and never even touch any banks. I really love this new car and would hate to see it go because I know I'll never find anything better, I'm really attached to it.
I understand I need to turn in an Answer Letter in the next few days to the court and or a Notice of Appearance but I'm not sure what's next and how to start the Discovery Process to see what they have on me, I've never had to deal with this before obviously.
Also I've been told that since I've been served a summons it's too late to contact the collection agency and try to settle an amount out of court so when does this negotiation process begin thru the court system.
Also I'm very concerned about the court fees since one of the complaints in the summons says that I was notified earlier that if allowed I'll be charged for court fees and the legal fees of the plaintiff and was wondering what that is going to cost me.