So my sister is getting sued?

You have 21 days to answer the complaint. If it is a collection, contact the attorney and offer to pay in full if they drop the suit(which they will) and if there was a prior collection for this debt, ask that in your settlement agreement that any credit reportings be deleted. If they act like an a@@ which most collection attorneys do, don't push it. Just go ahead and dispute to each Bureau that is reporting it regular mail - this is key. When you do this it goes to India or Jamaica, for Equifax, Transunion, and Experian. They have 4 mins to verify it. After two to three disputings it will come off. Make sure there is a copy of the drivers license and SS card in the dispute or it will get kicked back. Also, be sure to dispute that the debt is not valid and that they must provide a copy of a signed contract - most bottom feeder collection companies don't have them. I hope this helps and good luck!

Settlement offer?

If she did not offer to pay the debt in full as agreed on the loan or credit card documents then she is asking them to take less than they are owed. Why should they do that?

Her choices are to pay in full in the next few days or go to court, lose and pay in full and add court costs, attorney fees and who knows what else.

Tell her to pay the money.....pretty simple really.....

Being served with papers means she has to file an answer. If she pays in full now, she can file the answer saying she paid in full, and that will be that. Of course, if she pays in full, it's more likely that the attorney will have it dismissed and no answer will be necessary. If she is not able to pay anything, and the summons is correct, then she can file an answer saying she admits to everything, and an automatic judgment will be made unless the judge having any opposition to it (Which he won't). If you want to contest anything in the summons, you would file an answer saying you contest whatever it is you contest, and you'll have a hearing before the judge.

If she can pay them in full in the next few days why didn't she pay them in the first place?

Tell her to pay her bills. Her credit report will probably take a hit. She shouldn't have defaulted on her bills.

maybe she should just pay her bills to begin with. isn't it stealing not to pay them? we need to open some brand new debtors prisons in my opinion.