I have $48,000 in unsecured debt, payments of $1139/month, and can no longer meet these payments.  I don't want to file Chapter 7, and would rather settle with credit card companies.  One that I contacted told me they can accept no less than 40% of balance as settlement, if this is formally requested and accepted by them.  Then a 1099 will be issued next year, for which the chargeoff would have to be reported as income.  Will Bank of America or Chase accept less?  Don't they want to get something rather than nothing?