Going to court?

I got served for the 15th for $1040 (the actual balance, court fees and colection fees). I called the colection agency to settled or to arrange payment plans. In the past they always wants $350 mthly, and I can't afford this. I was thinking of $100/mth. This morning same thing, they just don't want to work with me. Now, should I try to contact their lawyer and see if I can do payment plan with them? Or should I just go to court. I'm really pissed. I want to pay this off, but come on I don't have $350 a mth to give you, I'm already short as it is. Please help...