The funny thing is that I work for the I.R.S. Form 982 is for debt cancellation; I am fully aware of the procedure. It will do me no good unless I get a lesser amount of what the original claim amount. I can claim insolvency and it will be taken care of. I have already spoken to various attorneys and none have given me any good reason to make it financially worth my while to set aside the judgment and run the possibility of losing and paying more or getting it vacated and getting a horrible settlement offer + attorney fees......it's a catch 22...

No one can make any guarantee as to results, especially on a public forum and when all of the facts are not set forth. All I can say is that you may have defenses, such as the Statute of Limitations. The plaintiff will have the burden of proof; if they do not have evidence that is admissible in court, and witnesses who are competent to testify about the matters in issue, you have a strong defense. If you successfully defend the case, you may recover your attorney's fees from the plaintiff.

Thank you very much. I am going to speak with a civil advisor from the A.D.R (Alternative Dispute Resolution) office in my local superior court. They will guide me on how to resolve the matter and refer me to a local paralegal to fine tune my motion to vacate the judgment, memorandum of points and autorities, etc,....