Hey S-O! The firm I work for advertises on TV, but we're absolutely NOT a BK mill. ;-)
It's not about whether they advertise or not, it's more about how they treat you and whether or not they do things other than BK. For example, and to answer a different OP question, a BK firm that also handles debt settlement should be recommending DS to anyone who's means-test shows a 100% payback CH13. And OP, BK/DS firms can cut better "deals" because the collection companies know we're not bluffing when we say "do this this way or we file BK". They can see that we do file BKs, and we float settlements through on BK cases, too, just to keep them guessing.
Anyway...
Your attorney needs to be looking out for you, what StartingOver was getting at is that it sounds like you went to one who's trying to cookie cutter you into their BK Mill solution, rather than address your case on it's own merits and come up with a creative solution. Here's a solution our firm would like to know the math on... If you and your wife weren't working the over time, would you pass the means test? What if one of you was unemployed for the next 6 months... what would that look like?
Clearly, if you're going to file BK, you're willing to not pay that $3750 every month and let all that debt fall behind... so how long would it take to get ~$50K if you weren't making those payments? Can the debt be settled in 12-24 mo using that $50K?
I wouldn't rush into the BK, you're not even behind on your payments yet. There's a whole lot more to consider.
Also, read this before you consider filing: http://ficoforums.myfico.com/t5/Bankruptcy/Bankruptcy-amp-Credit-Scores/m-p/1259627#M8730
Also go buy "Total Money Makeover" by Dave Ramsey and read it AT LEAST ONCE before you file. You might not need any DS or BK shenanigans, you might just need a plan. That book can help with that. Financial Peace University helps, too (so I'm told).
IMO, from what you've said in this thread... you're not bankrupt.
Cheers,
-SM
Starting Score: ~470 preBK(8/2010)