Account with Midland Credit Management

I hve a chase credit card that was just sold to MCM. The amount is roughly $9,100 and I have not made any payments to it in the past 30 months. I also have 3 other cards for a grand total of roughly $31,000. I have settled on 2 of them (or actually came to agreement on a price, just haven't payed yet), and for 20 cents on the dollar for both of them. MCM won't come down as much as I need to because I only have a certain amount of money. Since chase sold the account to them, will they end up selling it if I don't pay them, or will they sue? Also, he said that if I paid them, they would report it as paid in full. Is that legal? If I en up paying them, should I get it in writtng that they will send it to the credit bureaus as paid in full, and will I still get a 1099 (i think that is the form for a settlement)? They just received the account on Monday, so should I wait a while and see if they come down or are the pretty strick on their price? I have read some nasty things about them, but I am firm with my actions. I have already went to credit counseling for a bankruptcy before I realized that I could get all of this payed off this cheap. I am pushing that on them to see if they will budge. Any other tips or advice for people who have settled with them before?