This is an intimidation tactic. While I can guarantee you nothing, I cannot imagine they would go to the expense of filing a lawsuit when you are presently willing and able to pay. I recommend you write them a letter, explain how the mistake occurred and that you are willing to work out a reasonable payment plan.
All future communications should be in writing.
If you fail to get a response, or if they make any further contact then I recommend you consult a local attorney to write this letter for you again and with the threat of legal action for the continued harassment as well as bankruptcy (probably an empty threat... so discuss that with the lawyer).
As I said... these jerks are simply trying to intimidate you. However, suspending the interest and making payments is good for you so we need to keep that up if possible. If you put this all in writing I cannot imagine they will not agree (even if they want to argue about it first). Their only other option is to sue, which would be silly when the debtor is already trying to make payments on the debt.
If they sue... they sue. It is not a big deal. You will walk in and acknowledge the debt (with a lawyer's help) and set up payments through the court. Simple. This is why they really do not benefit from suing.
Please reply if I can help further.
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Edited by JD on 4/9/2010 at 6:13 PM EST