That is a good question. During a consultation I can only answer that after reviewing all your Income, debts and assets.
-Bottom line is, if you have a lot of creditors to negotiate with, you risk settling with some of them and then get caught holding the bag with a few at the end. Remember Musical Chairs or the Ed Sullivan show with the spinning plates? It is kind of similar.
-If you do negotiate, usually a lump sum is what the creditor would prefer.
-It is important to know how it will be reported on your credit reports, Satisfied in full? Partially paid?
-There is also debt forgiveness taxable as incometo investigate. Many people are not aware of this. Check with your accountant before settling debt.
To read more –
1099-C surprise: Canceled debt often taxable as income