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Help! Being Sued by Portfolio Recovery Associates, LLC

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I was sued by Portfolio Recovery Assoc LLC and I have spent hours researching different responses and templates and still am confused how to proceed. I am well within my 20 days to respond and today I already received   Negotiation settlement offer with two options ?? This makes no sense can someone explain this or does anyone know why this law firm would sue me and then turn around and offer me a payment plan before I have even responded ? They are in Dallas Tx Attorney Rauschenberg Sturm,Israel, Enerson,  & Hornik LLC I can only afford 25 a month they gave me two offers one was over 600 installment x2 and the other was 38 per myth please help! This makes no sense!

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