I have received a lawyers letter stating debt collection for Capitol one Credit card debt that was charged off. Advise please

Charged off debts are sold by the company: the obligation to pay is not extinguished. A collection agency can buy the charged off debt for pennies, and they also buy the right to sue on the debt.
Bankruptcy will make it go away, so will negotiating a payment plan if they will accept that.

I agree with Mr. McDowell's assesment of the situation, because the debt is old the agency may be likely to settle for less. If you do settle make sure your check is restrictively endorsed on the back at the top so they must sign under "settled in full". In addition, you will need to send a letter explaining with the check that this is an offer to settle the account and acceptance of the check is acceptance of the settlement. Keep copies of the cashiers check front and back and a copy of the letter. When they cash the check the matter is settled 30 days after deposit.
I usually offer 25-50% in the form a of a cashiers check marked setteled in full at the back.

If you need help find a local lawyer to help you.

Good Luck