Bankruptcy Law Questions? Ask a Bankruptcy Lawyer.
You have a lot of leverage for a settlement, because it is not too late for you to go to the court that issued the judgment and get the judgment vacated based on the fact that you never received the papers. This is the preferred route.
However, if you want to attempt to settle, you can expect the judgment holder to accept 1/2 of the entire judgment amount (including interest and fees), and you should approach the lawyer handling the case.
There would be no significant advantage to trying to settle now, versus at some point in the future - perhaps if and when there is a collection attempt.
The judgment does expire in 10 years, and there is a good possibility that it will be renewed. However, it must be renewed before it expires.
I think I answered everything. If not, please let me know.
The law firm can cross off the language, "by cashing this cashier check...", cash the check, and you could still owe the balance. There is nothing to be gained by sending a check before contacting the law firm.