Before they do anything that hurts, they will have to take you to court. Watch for their paperwork, and then meet them in court. Go without an attorney - without being represented - and not pro se (representing yourself). Rather, let them know you are present.

Acknowledge all the debt, but tell them that your offer is that you can only afford $30 (or whatever) a month payments. If they turn you down on that, they haven't accepted your offer. They lose.

If they accept your terms, don't let them change your offer by 1 penny, up or down. If you do, it will appear that you have lied about what you can afford, and they will be able to rake you over the coals.

In all of this, be as humble and friendly and embarrassed about the situation as you can, especially in court. It will make a good impression.

Listen to Karl Lentz on Angela Stark's Talkshoe. There's lots of good info there about how to handle yourself in court, and in the letter-writing that you should do preceding it.

http://www.myprivateaudio.com/Karl-Lentz.html