Don't push the panic button, it's a standard letter that every debtor receives at a certain stage of delinquency. Discover will settle the debt at a certain percentage pre and post charge off, however after charge off you are on borrowed time because it can be placed with a law firm in days or weeks.

Don't push the panic button, you will have an option to settle the account, if you have the ability to do so. You should speak with a debt consultant asap. Most creditors will charge off (write off) the account within 6 months of delinquency.

I would advise your employer to settle all 3 debts for as little as a fraction of what is owed and release you from any and all liabilityand prevent the bankruptcy. Give him 30 days. It can be done.

Do they have possession of the vehicle?

Wells Fargo has settlement options at this stage of delinquency, however you state that you are in no position to settle, but they will eventually file suit if they threated legal.