My question involves collection proceedings in the State of: Wisconsin

I checked the mail Saturday morning to find a mountain of letters from bankruptcy lawyers saying that a case was filed against me. Low and behold, checking the court access system a small claims case was filed against me December 10th. To date I have not been served any petition or summons.

Now, this is regarding debt that I DO owe, but not the Portfolio Recovery Associates, LLC. The situation that lead to the original account from GE Capital being turned over to collections was that I suspected that they were in breach of contract. I received a "medical expenses only" credit card from them to get some dental work done. I have no problem paying back for this work, however the first 12 months were supposed to be interest free. Having never been late on a payment (to my knowledge, the last payment I recall making was back in 2009) I expected them to hold true on the contract. The original balance was around $1,200. A total of $900~ was paid to them and only $200 of said $900 was applied to my balance. I still owed over $1,000~ by time I decided to throw in the towel.

Fast forward, I am now being sued in small claims by Portfolio Recovery Associates, LLC's lawyers. The amount they have stated on their latest communication reads $1,590.05 with a settlement amount of $1,192.54. Although I am able to pay this amount, I have a few questions I need answered.

1) Although I rightfully owe(d) this debt, should I pay Portfolio Recovery Associates, LLC the amount they are requesting?
2) Which type of lawyer should I be pursuing? I do not want to file bankruptcy, just make Portfolio Recovery Associates, LLC prove their case. In the event they cannot, I would imagine one would counter-sue for the legal fees incurred
3) I believe that the original contract was E-signed, I do not recall signing any physical documents. So what could the prosecuting attorneys provide for E-signage? Would it be considered valid?