It never hurts to try to negotiate a settlement of a court judgment, but be prepared to bring cash to the table. You won't get the best deal unless you have a lump sum to put up as full settlement. I would start the conversation with the attorney's office (you actually may want to communicate in writing) and see whether the attorney wants to work with you or to send the case back to the landlord. Hope this perspective helps!
Here's the issue - presumably, the landlord applied the deposit to your account before the judgment was obtained against you. Whether he did or didn't, however, is now irrelevant. It sounds as if you didn't defend the lawsuit, so you have no real basis now to appeal it or ask for it to be vacated, esp. since you agree you owe the money. So, that deposit money is already gone, and you owe the whole judgment plus interest. You certainly can contact the landlord or their attorney and try to negotiate a resolution, but any deal will probably require payment-in-full immediately. And, it won't remove the judgment from your credit report - it will merely report that it was satisfied.
We can be reached at 507.334.0155 (Toll Free: 888.777.5009). Our web address is: www. corbin-law-office.com. Answers on Avvo are not to be considered a response to a specific legal issue in a specific jurisdiction - they are to be considered only general responses to hypothetical scenarios posed by the questioner. For specific legal advice, please consult with a licensed attorney in your jurisdiction. No information contained herein should be construed as a solicitation for business, an offer to perform legal services in any jurisdiction in which the attorneys of Corbin Law Office are not licensed, or the dissemination of legal advice. No creation of an attorney-client relationship should be assumed or implied. We are a debt relief agency. Corbin Law Office helps people file for bankruptcy relief under the bankruptcy code.