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Most Courts, including California, put strict time limits on when that motion may be filed (six months from entry of default in California though this time limit may be altered based on various factors) and the longer the period of time from entry of default, the harder it is to have the Court remove it.
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.
If the judge grants your motion and sets aside the default judgment, any money taken from you should be returned (unless the judge orders something different). The case is not over though. Once the judgment is set aside, the case starts up again.
A creditor may agree to settle the judgment for less than you owe. This typically happens when the creditor thinks you might file bankruptcy and wipe out the debt that way. Settling can be a win-win. The creditor gets at least partial payment for the debt although it usually will require it as a lump sum.
Orders of default judgment (aka judgment in default) are obtained in two different ways: by using an administrative process a Request - judgment is entered by a court officer; or. by filing an application for Judgment in Default, with a Form N244 Application Notice.

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Once the judgment is entered, the creditor now called a judgment creditor can use the courts help to collect the debt. This might include garnishing your paycheck, freezing your bank account, or even trying to take your property. Responding quickly can help you avoid a worse-case scenario.
Assuming the judgment is valid, you cannot have it removed from the official records. You can contact the judgment creditor or the clerk of court to pay the judgment. Once the judgment is paid, a satisfaction of judgment will be recorded in the official records to show the debt has been satisfied.

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