Got a couple questions for anyone who knows about this sort of thing

I've got a couple credit cards that I've defaulted on. One of them just charged my account off on December 31st. Now they've got some company calling me offering me a settlement. I told them what I can afford, and they're saying I need to pay twice that. Or come up with $900 in the next couple weeks.

He's told me I've got days (not weeks) to get back to him, and if I can't pay they'll take that as me "refusing to pay" and then he said they look into my assets and properties and give that information to Discover. (I took that as him basically saying they may garnish my wages or whatever, or seize my car)

However, I make peanuts. $5 an hour, and barely scrape enough to pay my rent every month. Can they take more money out of my paycheck, even if I barely make enough to live? And can they seize my car if its in both mine and my dad's name?

I'm not too worried about the bank account.. they can have the $5 I keep in there