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Yes, you can agree to settle a judgment debt for less, even after the court has handed it down. Often, counsel for debtors will work with creditors as tactical negotiators to reduce a debt payment amount or for more manageable payments. Getting any agreement in writing is critical before you begin making payments.
Judgment is a void judgment if court that rendered judgment lacked jurisdiction of the subject matter, or of the parties, or acted in a manner inconsistent with due process, Fed.
You may be able to negotiate a settlement with the debt collector to allow you to pay off the judgment under better terms. In Limited Civil cases (cases for $25,000 or less), if the other side will not agree to a payment plan, you can ask the judge to order a payment plan. This requires filing a motion.
The court must set aside a default judgment if you: have paid the whole amount owed (including any interest and costs) before the date the creditor entered judgment; sent back the acknowledgment of service form within the time limit; put in a defence within the time limit; or.
You can ask to cancel, or ?set aside? a default judgment. You have to have a good reason for not responding in 30 days. If the judgment is canceled, you'll get a chance to answer.