I hope this message finds you well, present circumstances excluded. I am a licensed attorney with over a dozen years of practice experience in litigation. It is a pleasure to assist you today.
The answer to your question is yes. You should try to settle this before it proceeds further. Moreover, if you are unsuccessful, your attempts to settle are not admissible against you in court.
As to the present time, you must file an answer to the complaint that was filed within 30 days of service of process or the party will receive a default judgment against you. With the default judgment, they will be able to garnish wages and attach liens to your property. So, to keep this going, you have to file an answer.
There are sample answers to complaints all over the internet. You can also purchase state specific ones on uslegalforms.com for reasonable fees.
Let me know if you have any other questions or comments.
Please also rate my answer positively (three or more stars) so I can receive credit for my work.
Best wishes going forward!