If the collection agency agrees to a certain payment plan and you honor that plan (that is, you make payments under the plan, on time), you should not be sued. The key then is that the collections agency must agree to the plan--it's not enough that you've been sending them certain amounts (either directly or through the consolidation company), since the collections agency must actively agree to the plan. So to avoid court, make sure you have the collection agency's agreement--in writing, so you can prove it--and that you then honor the agreed-to plan.