Received Warrant in Debt from Dominion Law Assoc.

Can anyone offer any advice on what I can do. I have been summoned to court under a Warrant in Debt Civil Claim for Money.

Here is my story:

had a friend who was selling a grandfather clock. The buyer wrote her a check for 3500. She asked me to deposit the check because she did not have a bank account. So she had the buyer put the check in my name. I deposited the check for her. The next day I was able to withdraw all the money from my account and did so. I sent her the money. A couple of days later the check bounced in my account. I had no way to pay and basically ignored the problem (unfortunately). I received a letter from a collections agency around Jan. and they offered to settle for half the amount paid at once. I was planning on doing it until it fell threw. Now I have received a Warrant in Debt in VA with a court date of 10/04/10.

I was hoping to try to settle for half the amount out of court and pay the amount all at once. However, I don't want to contact the collectors. The reason on the WID for the civil claim says "overdrawn bank account/unjust enrichment." I don't think it's fair for them to claim "unjust enrichment" because the bank handed me all the money with no problem instead of waiting for the check to clear. Also, why isn't the bank going after the guy who bounced the check? If there's a way to get the debt dismissed I would love that. Which is why I'm hesitant to call and ask for a settlement. However, I can't afford a lawyer so if I do go to court I'll be defending myself, and with that I risk having the judge rule against me. On 10/4/10 the debt collector is going to start charging 6% interest and that is also problematic. I also don't want the judge to garnish my wages.

I prefer to settle out of court and pay half the money up front all at once, like they offered before. However, if I run the risk of asking for that, and if the collectors say "no" I won't have a case in court to have the debt dismissed. I feel really stuck and am grateful for any advice you can give me.

My friend has agreed to make the payments, however since all of this went down in my name I'm the one legally accountable.

Help Anyone?