Definitely go to the hearing--if you don't, you lose automatically (by default) and will have to pay whatever the creditor is asking for. When you do go, bring your evidence that the matter has already been settled--e.g. bring the written agreement with the creditor (hopefully you have a *written* agreement; an oral or verbal agreement is enforceable, but can be very difficult to prove that it exists, or what it's terms  are) and bring evidence that you're paying according to the agreement, such as cancelled checks, money order receipts, etc. (Hopefully you're paying in some way you can prove receipt, and not by cash.) If you can show there's an agreement and you're honoring it, the court should probably either dismiss the case or simply issue an order reinforcing the agreement.