Hello. I will respond to your question.
There is no rule of thumb as to what payment terms are reasonable. It is based solely upon the debtor's ability to pay, and the creditor's willingness to stretch the obligation out over time (as well as whether the creditor would be able to collect on a judgment at this time).
When a payment plan is agreed upon, it is customary for the creditor to insist that the debtor consent to the entry of a judgment for the full amount of the debt, with a stipulation that the creditor will not undertake collection efforts as long as the payments are timely remitted as agreed.
A common alternative to avoid the negative aspects of having a judgment of record is for the creditor to dismiss without prejudice (i.e. can refile), and for the debtor to sign a consent to judgment that gets held in the file of the creditor's attorney, and does not get filed in court until and unless there is a default.
My suggestions: Do not agree to a payment plan that you are not confident you can live up to. Ask for a discount on the total sum due if you pay as agreed. Stop any accrual of interest as long as you pay as agreed.
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