You are likely being served in that manner because the creditor was not able to serve you by conventional means, and thus obtained a court order to use substituted service. If that's the case, it's not likely to do you much good to later claim that you weren't served - the judge will have fashioned this as a mechanism to effect service upon you despite the creditor's not knowing your exact whereabouts and... you did in fact receive notice of the pending litigation, even if through your parents.

If you wish to work out a resolution of the case, I suggest contacting plaintiff's counsel. The court can't do that for you. Note, get any agreement you reach reduced to writing. If it were me I would try to negotiate a lump sum payment, ideally at a discount from what is claimed, in return for a dismissal with prejudice; but they may not agree to that, you may not be able to swing the lump sum, or you may have other goals in mind.