Garnished by CACH, LLC

My wages have been subjected to a 25% garnishment for an outstanding debt for a Bank Of America Credit card. The firm handling it is P Scott Lowery. The original purchase was around $3700 I believe which my ex husband and I paid on for about 2 years at I believe around $100 per month. Then as our marriage deteriorated, we stopped paying bills, it was a very bad time. It was a credit card that at a time when things we going well he had me fill out, then talked me into putting a pinball machine on. At the divorce, I took the debt because he took the house which was also a financial burden. I did nothing with the debt until I was served this summer. I contacted the law office and thought we had a deal worked out. They stopped the court date, and I agreed to a payment plan, had given them $200 as well. But the details were not final, and they were supposed to get back to me with the specifics the following week. I believe this all took place around the first week of September. However the following week my father had cancer surgery and I ended up having to rush back to St Louis because he had complications and almost died. When I returned my daughter was hospitalized, and is actually on her 3rd hospitalization right now. So I checked out mentally for awhile and didn't return their calls between all that plus working late to make up for the work I was missing. Last week I was told by my boss that they were garnishing 25% of my gross earnings after medical. I am a single parent, living alone, and that will financially ruin me. I called and the representative at the law firm basically said I either needed to come up with a large amount and they could stop the garnishment. I worked with several lenders and was only able to add on to a current loan through American General that is high interest for $2000. I was under the impression it would be a settlement. I talked to the law firm again, and she told me that no, this would only stop the garnishment, I will have to make a payment arrangement for the rest of the $7500 (this amount went up over $1000 between the original paperwork they served me with and the judgment) that they are now saying I owe. I believe most of the original debt was paid back, so the majority of what they will get is interest and fees. She also told me that now that they have the judgment against me, there is pretty much no way they will settle for a lesser amount. Sorry for the long story, just trying to make sure you have as much of the background info.

So I have questions regarding this. Is it right that they did not notify me when they went to court for the judgment? If I have representation, is it likely that this debt can be reduced? It is just that this amount of money both paying on the American General loan as well as paying them $200 per month which is the deal I verbally made yesterday will be VERY hard for me financially. As I said I am a single mother, right now I split time 50/50 with their father, but he will be sent to Korea in February and I am not asking for child support because of his circumstances. I just want to know if there is any way out of this and would be willing to pay for legal representation if it meant making the arrangement and total monthly costs significantly smaller. I just need to find out before Friday if this is possible because I need to give the law firm an answer about the settlement

Thank you for ANY help...I need to do something quick before payroll is processed next week...