Yes, you have every right to directly negotiate a settlement.  Sometimes, it turns out very well. Other times, you can get tricked or misled or make matters much worse.  For example, some people are tricked into making a very small payment (after having not paid for years) but then that resets the Statute of Limitations clock.  If you do negotiate a settlement, make absolutely sure it is in some form of writing with clear terms.  Also, be aware that debt forgiveness is potentially taxable (but is normally not taxable when wiped out in a bankruptcy).