I'm 2 months from statue of limitations expiring on Lending Club account and just found out Velocity is suing for this account. Last payment made was 8/1/2016. Statue in my state is 3 years. Balance is $2600. Have not been served yet but do see they filed on my courts website. I called lawyer handling case (Clarkson and Hale) and they offered $50 a month on full balance and we would have to sign a confessional judgement that they said would not be filed unless we defaulted on the payment arrangement. At this time a lump sum settlement isn't possible for us. Is it possible to get a better offer if we wait until after being served to try to negotiate? What if we answer and deny the claim will they still come to court offering a payment agreement or will we be forced into a judgement if we don't have a lump sum to offer? I also read on here about the arbitration clause. How would I answer and include that? I'm new to this and would love some advice.