Substantiate your reason for needing to settle.

If you can demonstrate that your finances are unstable, your creditors will be more likely to settle at a lower amount. Sometimes the verbal threat of bankruptcy does not work by itself and you need to support that your finances are on shaky ground If you don't substantiate your position, the creditor may assume that you are bluffing to get the best possible settlement. Maybe you are bluffing, but if you are not, proving it to the creditor may cause them to give you better settlement terms. If times are tough, it is often helpful to send a letter or budget form demonstrating that your income is not sufficient to satisfy all of your obligations. If your obligations are falling behind due to circumstances that are out of your control such as medical conditions, it is often helpful to send documents that support the circumstances that you have been forced into dealing with. If you have lost your job, they might not be sympathetic because they may not feel it is a situation out of your control. From their perspective it is still your responsibility to get a new job.