Do Settlements Always Have To Be Lump Sum???

Not always, it depends on the creditor. You will probably get the best offer if you can make it in one or two payments, but I've had one that got spread out over six.

A one time payment will always be preferred but as SusieQ noted, some will allow you 6 payments spread over 6 months. Best I was ever able to do was 3 payments over 90 days

If you can get that one lump sum you will save some money. I owed 17K on a CC and got a settlement for 9k making payments over a year. Could have got it at 7k if I would have the whole 7k at the time.

i dont know if its true or not but i hear you get a better settlement if its paid upfront and in full. But i have heard of others getting settlements spread out for 3 months, and some even 6 but it depends on the creditor. usually they have waited for so long they want their money now.