Bankruptcy, debt consolidation or payments?

BK requires you to qualify via a "means" test. You have to prove you don't have the means (income, assets) to pay your debts. Some assets are not protected under a BK filing and you'd have to sell them to generate cash. If you can generate enough cash, BK would not be an option whether Ch 7 or Ch 13.

If you could get a consolidation loan, you'll pay much more interest over time that if you buckled down and work on paying off your debts.

Also, look at what you are spending your money on. If you dine out a lot, eat at home. If you eat steaks, switch to hamburger; hamburger switch to bologna. Drinking wine? Switch to beer. Drinking beer? Switch to water. Close all unnecessary accounts and credit cards. You get the idea. Limit your expenses and use that to help pay your debts. You'll have ot make some sacrifices.

I think your best option at this point is to contact a NON-PROFIT Credit Counseling Service. The non-profit ones don't charge you a fee. They can assess your situation and maybe guide you to a solution.

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Depending on the bankruptcy, you can still owe anywhere from 10% to 100% of your debts. You will also lose control of your assets, substantially damage your credit for up to 10 years and may lose control of your income through wage garnishment. All of this does not account for attorney fees.
Debt consolidation is nothing more than getting another loan to pay off debt so you will still not get rid of your debts, you are even adding a new and a bigger one.
Debt settlement often does not work because of dishonest debt settlement companies. It also does not eliminate debt and make your financial situation better, it worsens it.
So, the best option that I highly recommend is debt elimination through Plan B. Plan B is the best and the only debt elimination program that will only take a small fraction of the true cost of bankruptcy, consolidation and settlement but it will help you get rid of all your debts while protecting your assets and keeping debt collections at bay while you are trying to get all your finances settled.

- A real debt consolidation loan is where you get a loan from a bank or credit union to pay off all debts to have one lower payment per month. With $10,000 worth of defaults on your credit report, no lender is going to approve you for any sort of loan.
- You never want to get get on payment plans for debts that have already defaulted. Doing so will not help your credit at all as the damage is already done. Making monthly payments will not reactivate your accounts, Also, payment plans with debt collectors have a way of not turning out well.
- Chapter 7 is something that should be done in a true financial emergency. Filing for Chapter 7 is not free and it will cost $2,000 on average. This money would probably be better spent settling or paying down these debts.
- Non profit credit counseling such as NFCC is not going to help your situation. These services only provide help with credit card debts and nothing else. If you have credit cards that have already defaulted, you are much better off settling the debts for less.
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To summarize: You are much better off settling these debts for less, with all terms in writing before you pay. If you don't have the funds, then save your money and then try to settle. Settling these debts won't fix your credit, but paid does look better.
How to pay collection accounts: https://sites.google.com/site/creditdebtadviceonline/how-to-pay-collection-accounts
- You need to understand that it takes time to heal seriously damaged credit. It could take one to two years to get back to average credit. No such thing as instant credit repair.
Consider getting a secured credit card to reestablish your credit history.
http://credit.about.com/od/creditcardbasics/a/proconsecured.htm