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I am sorry to hear about this situation.
Unless there was a written agreement that they would drop the lawsuit, then the lawsuit is still ongoing. Whatever has been paid into the matter via debt settlement program should be credited towards the total, however. And, if the total was reduced, then this should also be reflected.
If no such agreement has been signed in writing, then it is as though it does not exist and would be very hard to prove verbally.
If there was such an agreement signed that the amount shall be repaid piecemeal, then someone in your situation may wish to file a general ANSWER if they have not already, and then also a Motion to Abate (or dismiss, depending on the nuance), asking the Court to drop the lawsuit because the parties are going by an agreement.
Either way, one wants to appear in Court. And show the agreement. And, file the answer and motion to abate/dismiss as needed.
You would receive copies of whatever is filed by the Plaintiff from the Plaintiff. You would receive copies of whatever the Court sends out (such as a scheduling order for the lawsuit).
Many times, the creditor simply forgets to dismiss the case. One may wish to contact the creditor (or rather, the law firm that is filing the case) and ask them to drop the suit. They may agree to simply do so.
I can provide a list of pro bono/low cost legal help in VA is you'd like, in case you need counsel. Let me know.
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