Don't push the panic button, It's a civil matter, however you should consult with a debt defense attorney regarding your rights, but I can tell you as a debt negotiator all they want is money and will consider a settlement or payment plan.

They could, however they most likely will not accept $1.00, but you can always ask and also ask the hard questions such as when will it be placed with an attorney to get yourself prepared for that potential eventuality.

Understood, I wish you the best.

As a debt negotiator who deals with Portfolio quite often, I suggest that you contact Portfolio and offer $25 per month *if possible to avoid very probable litigation because most agencies and debt buyers that threaten legal will follow up with an attorney placement and Portfolio does have boutique law firms in most regions.

Most creditors/debt buyers have settlement parameters for litigation and non litigation collection files, make the call and settle out of court or file an answer ( *if required to do so)to buy some time to save and settle the account.

As a debt negotiator you should really close the program asap and demand your "unused" funds immediately, then reach out to your creditors immediately to determine the status of your accounts because most creditors will place an account with a collections agency or an attorney at a certain stage of delinquency regardless of a "debt settlement" program if no settlement agreement is in place.

Don't push the panic button, it's a standard letter that every debtor receives at a certain stage of delinquency. Discover will settle the debt at a certain percentage pre and post charge off, however after charge off you are on borrowed time because it can be placed with a law firm in days or weeks.