I don’t really know Canadian law, but my question is, how can the finance company get a default judgment against you in Canada without having properly served you a summons there?

The finance company might be bluffing. Why would they settle if they have a sure bet on a default judgment?

Your lawyers are technically correct. A Canadian judgement would be rather difficult to enforce in the US, UNLESS an NC judge agrees to uphold the Canadian decision. Then you’d have reason to sweat.

That being said, I would be mainly concerned if you still continue to do business in or with Canada. It’s remote, but still a possiblility that a Canadian court could order a garnishment of some sort which is leaving Canada intended for you.

There is also the possibility of a lien against your business or vehicles that could be filed.

My advice is to let your attorneys handle the matter.