I often am asked by potential clients – should they try negotiating with their credit card lenders or file for bankruptcy? I would prefer that any potential clients would find resolutions to their debt issues prior to filing bankruptcy. The only problem is that most of the time, the credit card lenders are not willing to negotiate with the credit card holder. The reasons for this is multi-prong. First, If you have been current with your credit card balance, they often feel they have no reason to negotiate as long as they are getting their regular monthly payment. Second, even if you have one creditor that is willing to negotiate a reasonable settlement, the other nine creditors are not willing to settle. So this make it almost useless to settle with the first lender. Third, most credit card lenders will want you to have a lump some amount of money in order to settle. Finally, debt settlement can have negative consequences. In many cases your credit score can be impacted as much as a bankruptcy and there are also can be tax consequences if the credit card lender sends the IRS a 1099 statement.