Should I Worry About Being Sued!

Last November, out of nowhere, I received a phone call at work from Harold Scherr's office, stating they were calling about my Providian credit card account that I had not paid ( I had run into some financial difficulties due to medical/out of work). I had never heard from these people before. He said that he wanted to give me a call because they were in the process of filing a lawsuit against me, and had pulled my record to see if I had assets to attach to. He said I could prevent it if I came up with $7200 (even though the balance was only around $6110). I told him I didn't have that kind of money right now. He asked me if I had an attorney and I told him no. Needless to say I was very upset and in tears. Later in the day when I called him back, all of a sudden he was able to settle for less money, but I had to make three large payments. Under stress, and not knowing what to do, I agreed.

I made one of the payments, but then ran into some problems, and was not able to make the next two, but made partial payments through money orders. Contacted their office and was told again (by a legal assistant - have never spoken to an attorney from their firm) that "she was in the room with the attorney reviewing my file for filing a lawsuit this week". She said I had until the following Tuesday to come up with the balance. Again, upset and in tears, I tried to find a way to come up with the balance, but could not. I contacted the lady the next day, and again under stress, made arrangements for a large amount to be deducted from my account every two weeks. I've made three payments so far, but it's causing me further financial hardship to pay my other bills.

I know I've probably done this too late (because I've never dealt with a CA before), but I decided to research and found all this information about their office and the different scare tactics used. Also when I looked at the details of the drafts from my account and the letters they sent, I'm finding that: the letters from their office stated the original creditor is Providian, the representatives from their office state they are calling about my Providian account, the money orders that I had sent, they told me to make them out to Providian (which I wonder how they cashed); however, when I look at the drafts that were deducted from my checking account, they are made out to the Law Offices of Harold Scherr, deposited into an account for Collect America, but when I review a recent letter (April), within the body of it, it states they represent Arrow Financial (even though letters prior to that and after that make no mention of that company, but still refer to Providian as the original creditor). I don't know who I'm paying.

My question is do you think they have a case to file a lawsuit against me if I tell them that I can no longer pay the amount that is being deducted, but will send them smaller payments. I have all the original letters stapled to the envelopes from them, copies of the drafts taken from my accounts, copies of the money orders, and a phone log/journal of calls. I don't know if I'm assuming too much if I think that they are not going to go to the expense and hassle, because I am making payments, and that a judge may look and see that I've been making payments and feel that they are just being greedy and tell them to be patient. I don't know. Any advice would be helpful. Thank you.