Legal Question in Credit and Debt Law in Massachusetts

If there's a reasonable amount you can pay every month, that would be a good plan. Debt collection attorneys almost always will accept payment plans or some reduced lump sum payment. The thing to keep in mind, however, is they'll try to get you to pay more than you initially offer. Don't commit to something you know you can't do. While you don't want to go to court, you should file an answer to the lawsuit anyway. If you don't answer the lawsuit within 20 days of the notice, the attorney will seek a default judgment (even if you've already called about arranging a settlement).

There are some free resources on debt collection lawsuits here: http://masslegalservices.org/library/directory/consumer/debt-collection. Also MetroWest Legal Services might be able to give you some free advice. You can find them here: http://www.mwlegal.org

Hope this helped and good luck to you.

I mostly agree with Attorney Beauvais. However, there's no need for an answer in small claims, you just need to appear on the scheduled date. You didn't indicate whether this was civil or small claims. Most collections firms will ask for an agreement for judgment anyway, since they've already commenced litigation. Usually the only way to avoid that is to get it paid quickly, or enter into a written settlement agreement, where the agreement for judgment is held in escrow while payments are being made.