Being sued by Capital one

My mother is being sued by capital one. She is on SSI & lives in a low rent apartmant building. (In Pennsylvania btw). She has to appear at the local magistrate. She wants to offer to pay 20 dollars per month on her $1500.00 debt. She also has another outstanding debt with capital one of over $1000.00. (she used these cards to live off of while waiting for SS to go through) Is there anything she can do? I advised her to let a judgement get filed & then file bankruptcy. Would that be the best thing to do. Can the company seize her car?

Thanks for any input

[judg4]

See http://www.worldlawdirect.com/article/935 -- Collecting on a court judgment.

Bankruptcy would eliminate it, that is true, but if she has few assets they will have a hard time collecting anyway--and that could cause them to compromise.