Wow, they are one of the worst in the country...
"http://budhibbs.com/collectorpages/hanna_frederick_j_assoc.htm"
You *need* to have an attorney with you on this one. If you can't afford one, inquire with the court about Legal Aid or go to the
National Association of Consumer Advocates for an attorney referral. You can also check your county civil court website.
As far as a settlement goes, just make sure you get the arrangement in writing before you pay one dime. And when you get a settlement arrangement you are happy with, after you pay it make sure you get a Paid letter, then you should be alright... (SAVE those papers!)