If you have numerous other obligations to other creditors that you can't pay, then you might want to take a look at the big picture with bankruptcy counsel. If this is your only one, however, and you can do a payment plan, suggest it to the creditor's attorney and let him/her suggest a weekly payment number first and then make that the starting point of the negotiation.
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That's difficult to say. You can always contact the creditor's attorney before you even go to court to see what they will accept, so you're not caught by surprise at the initial appearance. But I agree with the other attorney that you always need to look at the big picture. If you have a number of delinquent debts, and this is the first lawsuit, the others may not be far behind. Consult with a qualified bankruptcy attorney in your area to see what your options are.
Impossible to say, without knowing what your assets are, what the case is for, who is bringing it, the likelihood that they could succeed if it went to trial, etc.