In early 2010, I owed Discover $ 12,500. Within a few months of fees and 29.24% interest my debt was $ 15,035. I tried to offer a settlement in 8/2010. They wanted more than I could pay.

In June, 2011, I received a law group letter stating Discover is their client and I have 30 days to dispute the validity of the debt or they will assume it is valid.

In October, 2011, I received a second letter from the same law group. The balance is now $ 15,405 and they would accept a lump sum settlement of $ 9,243 if certified funds are received in their office on or before 12/1/2011.

On 11/26/2011, I received IN THE MAIL a court summons stating the papers were PERSONALLY DELIVERED to me on 11-22-2011. The date on the summons is 11-10-2011. The summons says I have 30 days from the date I was served to file a written response.

Do I have any recourse as I was never personally served the papers?

This might be a "nail and mail" situation - what State? I own/operate a process service company. After three attempts I "nail" the Summons on your door and follow up by mailing a copy to you. The "nail" date is the service date.

IF the summons gives a Court date, go to Court and advise that you were never served. Of course, you'll immediately be served and that service will be good - but it will get you some time.

Personally delivered is sometimes used in a nail and mail situation, particularly if the Affidavit of Service does not have the "nail and mail" language. It doesn't happen often, but I have seen it.

You also have the address of the law firm - send them a certified letter stating that you were not personally served and their process server is incorrect. They will make every attempt to make sure you are legally served the next time around.

What is your intent? Settle? Dispute the claim? What are you grounds for disputing the claim?

The figures you have posted are not out of line legally.

I personally wouldn't argue service (because you can and will be served again) and would concentrate on a defense and/or reaching a settlement.

Not really, you can ask for more time from the court. That's about all.