Legal Question in Credit and Debt Law in California

You don't provide enough information to answer. Did you properly serve them with the General Denial? If they didn't receive the GD, they think you didn't file a response, which would result in them being entitled to a default and default judgment.

What do requests for admissions have to do with it? It is very rare for failure to respond to requests for admissions to have anything to do with entry of judgment; they are a discovery tool.

Too many missing pieces.

However, the answer to "what is my next move" is easy. If you filed and served the GD properly, their default will be denied. If you didn't, file and serve it correctly immediately. A filed and served response blocks a default. Then, if you actually don't owe the money, initiate discovery to force them to try to produce evidence that they think shows you do. If you do owe the money, either negotiate a settlement and payment plan, or if you absolutely cannot pay the debt, find a bankruptcy attorney.