I am being sued by Portfolio Recovery in the state of Texas for $1685.58 for a JCPenney credit card. Count 1 is Breach of Contract and Count 2 is Account Stated. I was served today, March 11, 2015 in person. I called the debt collection agency and agreed to set up a payment plan as I do owe this money. I gave them my checking account info and agreed verbally to pay 20% on March 31, 2015, and then the remainder over the next fiscal year to pay the debt in full. The affidavit states that Portfolio Recovery purchased this account in August 2010. My husband is furious with me because he says that I shouldn't have agreed to anything and that there is a statute of limitations that has been passed. My Questions: 1. Should I just continue with the verbal arrangement and sign the papers when they are mailed to me agreeing to pay the debt and proceed to do so? or, 2. What are my other options since I have already contacted the debt collector and made arrangements? 3. The woman I spoke with at the debt collection agency said I did not need to file an answer with the court that it would be taken care of through them. Do I still need to file an answer with the court and if so, what is the process? Any advice would be appreciated.