please read if you can

It is generally not wise to keep one creditor current while trying to settle with another. BofA can pull your credit report and see that you are making payments to another account and be more difficult to settle with.

Discover is quick to sue but they do offer hardship programs.

Putting the money in savings is a good thing. Hopefully it can earn some interest. As long as you do not bank with any of your creditors they cannot touch your money.

I would not default on one unless you are going to default on both. Not only can it be more difficult to settle but the one that is not in default will often pull your credit score and start screwing with your card even though it is in good standing. Basically they will probably up your interest rate and lower your credit limit even if you do not miss a payment to them.

If the duplex is your primary residence, then you may want to consider bankruptcy (chapter 7) if you can not afford to pay anything towards the debt. If you can afford a smaller monthly payment towards your debt then, debt settlement may be a good option. It really depends on your overall financial situation; do you have equity in the duplex, what your living expenses are, etc. I do agree that if you are going to settle with one debt, you should do both. It won't make much diffence on your credit score and the card you leave open will likely be hit with higher interest and lower credit limit.

I have been talking to BOA for 4 months now about a settlement. They have been very nice and have tried working with me on all of the different options. They know I want to settle so every month they have given me a settlement amount. The last one was at 35% and the one before that was at 30%. I could not come up with the money either time so I did not pay, even when I was sent a letter with the settlement amount. I talked to someone last month and they told me to call this month and see what % I can get. They said it changes every month and I am taking a chance by waiting. I'm hoping this month it will be lower of even the same.
This is the only card I have not been paying on. I am in good standing with my other 6 cards. My interest rate was changed on some of them, but that was done during the time I first stopped paying so I 'm not sure if not paying BOA had anything to do with it. They all said the same thing, I could keep my old % but I had to stop using the card and continue to make payments and I could keep my original percentage rate to pay it off. If I wanted to keep the card I had to take the higher interest rate. Everyone that I have talked to have said that it was done to them also, even the people that have great credit.
BOA has worked with me even when they are the only ones I stopped paying. I think I really need to take the settlement this month and be glad that they are working with me.
I have a high balance on this card and when they decided to raise my interest rate it was impossible to make the payments so I don't feel bad settling with them.
My only concern is the taxes I will have to pay. Does anyone know what that would be on 14K? (that is the amount they are writing off)

Any debt forgiven is considered income, so I would plan on 40% of $14K which is $5600. This is a very conservative estimate and it depends on your tax bracket, filing status, etc. There are ways around paying this at all but you should speak to an accountant.