Midland Credit Lawsuit should I file Motion to Compel Arbitration?

So I was served by an attorney for MCM in February and appeared in court today. The original attorney's office that filed the claim hired another attorney to appear for them. I now have 30 days to respond or try to settle. The suit is for $2,900, I sent an email to the attorney listed back in February offering $800 and never got a reply. The attorney in court suggested a telephone call, although I hate talking to people over the phone. And for what it's worth, my income is less than the amount that they could get a judgement against my pay.

I'm debating about trying to file a motion to compel arbitration to see if I can just get it dismissed but I'm unsure since they actually had a third party attorney in court today. Has anyone had luck with trying to request arbitration and having it dismissed? I really don't have much money to pay, although I may try another lump sum request and include the fact my pay can't currently be garnished.