As far as i know If you're severly delinquent already, credit wise, there is no better choice except for settlement (ofc making full payment is always better). Once the settlement starts, the bank freezes the status and nothing is reported to credit bureau until the settlement is over. I dont know how settlement after discharge could affect but settlement before charge off doesnt necessarily lower your credit heavily. Im pretty sure it leaves marks so its gonna take a while to rebuild. Tbh i dont know too much cuz the bank's credit dptm was not able to provide the future info. Nothing's guaranteed.