Hello, I've recently heard that creditors will accept as little as .30 cents on the dollar from the borrower to clear owed credit card debt? My parents have accumulated a lot of credit card debt and pay over 800 per mo to these companies. They have made all payments on time to date but we are considering a bankruptcy for them, as they simply cannot continue to pay. They owe three separate cards in total of 36k. If what I've heard is true and they can avoid the bankruptcy how should we approach these companies in making such an offer?
Thanks in advance for any help available on this.

Generally, for a creditor to accept that little it would have to be a charged off debt that the creditor purchased for pennies on the dollar. Active accounts will not do that. Also, such a discount would only be offered on a lump sum payment.

I would try to consult with a debt counseling service to deal with the creditors on their behalf.

Thank you so much for this reply, I thought that there would be more to it. On a separate note, if they have 70k in a 401k type account wouldn't it make sense to use that cash in paying off this debt? If they have 36k to payoff what would you estimate them to have leftover?

Thank you so much for this reply, I thought that there would be more to it. On a separate note, if they have 70k in a 401k type account wouldn't it make sense to use that cash in paying off this debt? If they have 36k to payoff what would you estimate them to have leftover?

No it would not. The cost of taking that money out of the 401K would be greater then paying the money back.

Okay I see your point. I'll contact a debt counselor for them and see what they have to say about it. Thank you for your input.