it would be a many years long process with lots of phone calls from creditors and collectors, in the ends they add on interested and fees etc.. so when they "settle" it's really as much as a discount as you would think. As well in the beginning the settlement offers are not very good, only many years later do they get better. however still better than paying 26% interest
If playing things right one can expect to settle for 30% or less, depending on circumstances, sizes of accounts, which banks, etc.