Well, I got a surprise weekend email from OC stating that she is sorry that we feel they are being unfair and accepting the $2000 and marking the accounts settled is the est she will do.
Not exactly the response I was hoping for. I think we'll just bite it and pay the $2000 and accept the settled status. Filing bankruptsy was a bluff I'd hoped she wouldn't call me on!
How is this this going to affect our numbers? and for how long? We need to be able to get a car loan within a couple of months. I have 2 other collections on report. Both will be deleted once OC is paid in January.
OK, after a few emails back and forth, she states that she will report the account settled but will not report a $0 balance, because we will still have a balance. And that is her final offer! I responded asking her if what she is saying is that she will accept my $2000 and I will have a balance? One that she could continue to attempt to collect on in the future? Well, she took to long to respond and since I am starting to get irritated with her at this point, I sent her another email stating that she has recieved my offer with terms and she has declined them. My offer is now off the table and I will give my $2000 to my other creditors who have already agreed to a PFD. I also told her to get back to me in 3 months, or 6 months, or a year or 3 years or whenever she is less interested in destroying my credit and more interested in getting payment on this account.
It's all about principle now. I am not paying this account unless it's on my terms! 
It hurts me less and less each month, and I'm not planning any large purchases in the next few years. Winning this is my new mission!
I am having a really hard time finding the CEO of this company or someone higher up than her (manager of this particular branch) to deal with.
From how I see it, there is no difference if you pay $2000 or nothing. They have a judgement against you and it will be on your report for 7 years. At the end of that time the repo may fall off but they can renew the judgement as far as I know and continue to come after you. I think at some point you have to pay it if you want to restore your credit. With a judgemtn you cant buy a house, Working in a state or Gov job is out. And if they renew after 7 years you will get another big hit to your credit. I am pretty sure that is the case but I could be wrong anyone else?
Starting Score: TU 560
Do not give up your search to find a higher person in this company who can help you. As long as you have the leverage the ball is in your court. You can still continue to build up your credit with a judgement. In time you will have to figure out what will work best for you. However, they may budge. Because the damage is already done continue to work on your other credit. So never give up.