Never use the term bankruptcy to initiate a negotiation. In fact, you should not use the phrase until you are certain that the credit card issuer has agreed in principle to the idea of debt settlement. Why?
Well, if you file for bankruptcy, that will be the main reason you receive a settlement. It is an excellent bargaining asset in your possession.
The issuer of the credit card will propose a 30% settlement and expect you to be satisfied. You will loose your negotiating leverage because you have used your primary weapon. However, if you explain why you need a debt settlement and provide reasons other than bankruptcy, you can substantially increase the total amount settled by using this option.
For instance, if you are offered a 30% settlement, you can state unequivocally that such a sum is completely useless. You would still declare bankruptcy despite the 30% settlement offer. Obviously, the credit card issuer will find it challenging to begin again.
By proposing a larger settlement, it is likely that the bankruptcy threat will be neutralized. 20% of a credit card loan of $50,000 can be a substantial quantity. Always keep in mind that the proper use of your bankruptcy threat will save you thousands of dollars.
If you do not, you will likely lose the same amount to credit card issuers. If you desire a 50% settlement, you should never begin at 50%. The very premise of negotiation is that you will begin with a position that is higher than what you want and work your way down to a point that benefits both parties.
If you begin with a 50% settlement demand, the card issuer will likely realize that you are aiming for a 30% settlement. The card issuer will attempt to resolve the dispute for approximately 25%, which is half of what you desired.
Therefore, always start high and be willing to labor low. Since you are confronting the possibility of bankruptcy, you need the best possible settlement offer. Voluntarily requesting a lower credit limit will only arouse the suspicion of the credit card issuer.""
" - https://www.affordablecebu.com/