There are a couple of options:
1. request a court continuance if one wishes to challenge the underlying claims
2. If one does not wish to challenge the underlying claims, they can contact the other side and tell them they will pay the amount owing. Some people will negotiate on the amount, others will pay it off in full depending on the circumstances of the case. It is important to get any settlement in writing and to have proof of payment (ie canceled check). Also by settling, this helps the entry of a judgment, and a judgment can be very damaging to one's credit report, even after it is paid.
Per small claims court rules:
8. SETTLEMENT — If all parties agree on settlement of all claims before trial, each party must notify the judge by telephone so that the allotted trial time may be reassigned to someone else. Immediately thereafter, the parties must, in writing, notify the clerk of the settlement, and the court will thereafter dismiss the case. The mailing address is: Clerk of the County Court, Civil Division,
As part of a settlement, often times parties will have each party execute a Release as to other damages, so that this settlement would resolve all issues so no further court actions could be brought at a later date.
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Information provided is for educational purposes only. Consultation with a personal attorney is always recommended so your particular facts may be considered. Thank you and take care.