You can file an answer to the warrant (complaint) and dispute the balance owed. However, if you lose the complaint - there will be a judgment entered against you.
What happens in most debt collection actions is that the defendant/debtor will file an answer to the complaint and then attempt to negotiate a lower settlement amount with the creditor - if the creditor accepts the lower settlement amount (and the debtor pays the money), the complaint will be dismissed and no judgment will be entered.
When trying to settle a debt, creditors generally prefer lump sums over payment plans. They are often willing to accept an amount less than the full debt (the trade off is that they get a quick payment and don't have to worry about ongoing collection costs or administration). If you do not have the ability to offer a lump sum for something the creditor will accept (some will accept a small portion, while others want close to the full amount), you can try a payment plan, these are less satisfactory to the creditor (especially if they have a lien on your property already), but if you are willing to offer something with a reasonable chance to get the creditor a large amount of their debt back, you are likely to get them to accept it.
Whenever working with a creditor, make sure that you keep your communications in writing (if you speak to someone by phone, promptly send a confirmation letter to summarize your conversation), as this will help to ensure that there is no confusion later on, and you will be able to enforce your settlement against any future collection efforts.