What are my rights?

I understand that you say that you do owe it, however, send them a debt validation letter anyways. They can't continue to collect until they have validated the debt. I would make them jump through some hoop.

Regardless if you admit you owe it, when you get that letter it should have a 30 day disclosure giving you the right to dispute it. It is your legal right and should be used.

Who is this "law firm" what state do you live in?

I'm in Ky. It is joe Pezzuzio? Don't know if I spelled that right or not.

Do a search for Joe Pezzuto (Putz) there are a few threads about him on the forum

I've read them....seem to be bottom feeders. Are they any regulations as to what they have to accept as payment arrangements? I can pay 50 every 2 weeks or 100 a month but, that is all I will be able to do. I don't want to promise something that I can't deliver on. I also don't want to get into some crappy arguement with a debt collector.

Another question....should I ask them for a settlement offer first and then make payment arrangements on the negotiated amount? Can I negotiate with them? Can I put something in there about how it is listed on my credit report? I"ve not dealt with this before and want to get in the best possible positon given the situation.

Unfortunately since it's in collections they can demand payment in full but...since you control your own wallet, you can counter-offer. They can either accept what you can afford or nothing. As far as negotiating a settlement, lumpsum will always be what they want. If you can haggle with them and get it down to where you're comfortable, try getting them to agree to 3-6 equal payments.