My question involves collection proceedings in the State of: Minnesota
Received a summons concering a car that was repossessed. The car was financed in 2006 and lost job shortly after so has been in default since 2007. Was charged off but they didn't physically reposses the car. Got into an accident April 2010 and car was totaled. Insurance paying out value of car $3000 to the bank yet the balance still owed on the car was $6300 plus $700 in interest. Received summons saying they are trying to collect the $6300 plus $700 plus $950 in attorney fees. Insurance claim hasn't completed yet so after they receive the $3000 payment I will still owe the rest? Should I try to reach a settlement? Can they accept both the payout from insurance and still go after me for the rest? I am currently going to school and only income is from child support for my daughter. What can they do?

