I highly recommend that you obtain representation if you are in a law suit. Your willingness to pay needs to be coupled with some strategic legal tactics.

You do not have to pay anything until they get a judgment against you. If you own any real property [land or a house] they could put a lien on the property but you sound as though you are judgment proof. See if you can get some neutral party to convey to the creditor that there really is no practical way for them to collect except by agreeing to partial payments by you.

The best way to try and work out a payment plan may be to respond to the lawsuit and then try and work out a settlement that allows you to pay over time. If the plaintiff gets a default judgment against you they will be able to start collection activities like attaching your bank accounts and other assets and/or garnishing your wages. You really should consult with a lawyer to help guide you. A lawyer may be better able to negotiate a payment plan for you and may be able to point out some defenses that you might have to the claim.

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