My question involves collection proceedings in the State of: Washington
Almost 3 years ago I was involved in a incident at Winco Foods, where I inadvertently put a small item in my pocket (worth a few dollars) and was "caught" outside after paying for my groceries. They had me sign a couple of forms which banned me from Winco for 100 years and agree to pay 200 dollars plus the cost of the item. No police report was filed.

I tried to appeal to Winco Security, which reviewed my case, but denied my appeal. I spoke to a senior manager about my situation and he advised me to just pay the fine and move on as they rarely, if ever, reverse a case.

I initally strarted to make payments, but soon after lost my job and fell behind. I had payed over half of what was demanded. I was soon assigned to a collection agency which began to harrass me non-stop. I tried to make payments at first, but my situation went from bad to worse. (We had declared Bankruptcy (Chapter 13) just prior to this incident.) My Unemployment benifits soon ran out and we were surviving on my wifes meager paycheck, assistance from our church and the local food bank.

At first the Collection agency would "postpone" my case, but lately the calls are calling for "Final Disposition on my case".
They threaten Civil action and Criminal action. They also threaten to garnish my wife's check.

I have tried to explain in a very nice professional manor what my situation is, but the latest calls are more and more threatening.
After the Chapter 13 settlement and Medical Insurance we get less than $100 every two weeks, which goes to put gas in our car for my wife to go to work.
There is no money to pay off the fine.

What can they do at this point?
What should I do?

Thank you for your time.