My question involves collection proceedings in the State of: Ohio

I worked for a financial advising firm for 6 months. During that time I was a top producer (100% commission) in their office and qualified for insurance/medical benefits. I signed up my family and myself and the insurance premiums began to be withheld from my paychecks. Over the 6 month period my sales went down and I was not making commission, but the insurance premiums continued (they were now being covered by the firm). I was not able to discontinue the benefits as there was not a life event, but we were also NOT using them no doctor appointments during my employment. Please note that I feel I had no way to avoid this debt to them.

The debt total when I left was approximately $1900. I was contacted by them and after trying to argue my point with them agreed to pay $100 a month, unfortunately my economic and health situation changed dramatically, and I was only able to pay them back $700, leaving a debt of $1200.

I contacted them via email, and asked them to reconsider and accept $300 lump sum paying them back 50% of the original amount owed. No communication back from them until now, I have a lawyer contacting me telling me I have until 12/31/12 to pay them the full $1200 or at least $1,000 lumpsum or they will report it to the credit bureau as well as reporting me to the Ohio insurance department. I let them know I no longer had my Ohio insurance license so now they are only going to report it to the credit bureau.

I don't have the $1,000, and I don’t feel I truly owe them this money, do I have any other options?