Hello, and sorry to hear about your situation.
If you stop paying rent, and walk away from the lease, you are in breach of the contract
and the landlord can sue for damages. Typically, damages are the amount of rents that would have been paid for the remainder of the lease period, minus any savings from your moving out. For example, if the landlord paid the electric bill and your moving out saves him $200 per month, that could be subtracted.
If I understand the numbers correctly, you are paying $4000 per month and have about 12 months left on the lease. The owner is offering you to get out by paying five of the remaining months, which is reasonable.
However, if this is not possible, you have one other option. If you can find another tenant to take over the lease for you, the landlord would not be harmed by change and would not have any claim for damages. The landlord must accept the tenant, but cannot unreasonably refuse one without losing his claim in court for failing to make an effort to minimize his losses.
If you don't want a hit on your credit and don't want to get sued, you either have to work out a settlement
to let you out of the contract, or find another tenant. If you can show the landlord you cannot pay, he may be willing to settle for less since it is not in his interest to spend money on a lawsuit and then not be able to collect the judgment.
Sorry if this is not the answer you wanted, but I hope it helps you understand the situation.
Please keep in mind that information in this forum is for informational purposes only. It is not legal advice and does not constitute creation of an attorney client relationship. Before acting on any such information, you are always advised to consult with an attorney licensed to practice in your jurisdiction who can take the time to review all the facts and laws relevant to your situation.