Structuring payment plan for damages owed by tenant

[Andy H.]

Imagine our surprise when a former tenant who owes about $1200 in damages beyond what her security deposit covered contacted us asking about setting up a payment plan to repay! We figured we'd have to take her to small claims court or just eat the loss. Hopefully she'll actually follow through. 

Anyway, we're looking for suggestions on how to structure the payment plan with her. Should we ask the tenant what she can afford to pay and when? Or should we set the terms and then negotiate if she says it won't work for her? 

$200/month for 6 months? $300/month for 4 months? Any suggestions appreciated.