My question involves collection proceedings in the State of: Georgia

Okay here's my story. I was already in financial troubles earlier this year. Went for 4 months without making a payment on the credit card. Then 2 months ago I get laid off. In the last 3 months I was making payments to Discover at $200 a month. Now I find out they charged off my debt. And I now have Redline calling me. They tell me that IF I will pay $500 this month, then $200 for the next 3 months that they will "work" with me. BUT....they insist that I post date checks and they will do an automatic draw out of my account. I do not want it set up like that. They say unless I do this there is really nothing they can do. I asked okay, can I mail the $500 this month. THen write checks for the remaining months? They said no, that does not show my willingness or consistency on paying the debt.

What should I do? I told them that unemployment pays little to nothing. I mean I get the max in GA. which is $330 per week. But still, with a truck note, utilities and mortgage. Nothing is left over.

I have always heard that if I am paying something per month that there is little they can do. But I am affraid of them sueing etc. I mean, I really having nothing for them to take if truth be known. But I am really worried about this. And Discover had told me that as long as I paid $200 per month that my account would be current. Actually Redline was wanting 10% of the debt now, that is until I told them that I was laid off.

Sorry for the long winded post, but I worried and confused as to what to do. I have thought about filing bankruptcy but REALLY hate to have to do that. I had an almost perfect credit score prior to having to take a new job and move!