Hello,
I owe 1550.00 and the company is taking me to court. My wife made arrangements to pay (monthly) and they refused. What will happen to us as a result of this?

Assuming you live in the US or Canada they don't have debtors prison any longer. So the where you live makes a difference.

What your wife did was to make a offer, not arrangements and they refused her offer. Also do you owe the debt or do you and your wife both owe the debt, If only you owe the debt, you, not her should have made a offer.

If you live in the US and live in a state where they allow garnishment, basically they will get a judgement, and can attach your bank acccounts and then garnish you paycheck of @ 25 percent ( again depending on where you live)