My question involves collection proceedings in the State of: New York.

I have been sued by a collections agency (debt buyer) for a 5 year old credit card debt (the statute of limitations in NY is 6 yrs). I answered the summons and a court date is set in NYC Civil Court. Subsequently, the collections agency has contacted me, asking me to contact them to attempt to settle out of court. I am not sure of the best way to negotiate this...

I've been unemployed for a year. I have no money, no assets, no investments, NOTHING. I'm delinquent on student loans and 2009 taxes, both of which I'm in the process of trying to work out reasonable/affordable payment plans for. I don't have money to pay this credit card debt; however, I'm concerned that if I go to court, I'll automatically get a judgment against me because I really have no other defense other than laches. I might be able to borrow SOME money to pay a portion of this debt, but not all, and I'm trying to avoid having my bank account frozen/future wages garnished given that I'm on the verge of that happening due to my other secured debts.

All that taken into account, would I be more likely to get the collections agency to settle with me for a lesser amount if I'm up front about my lack of assets/other debts? Or would that hurt me more because they'd figure if they went to court, they'd get a judgment which would allow them to collect the full amount eventually (they have 10 yrs to collect a judgment in NY)?

Any advice would be helpful.

thanks.