I might be able to steer you in a different direction. Here's my story:
Five years ago, as many aspects of my life were collapsing around me, I found myself in debt to 3 credit card companies for around $50,000. Three years later, the bills were paid off. I had hooked-up with Positive Return (later sued, and likely out of business, but anyway...)
Their approach was this: Cancel all your cards, give us Ltd POT, and keep this script near the phone for when the collectors call. Although I just chose to ignore the phone, the script said something like, "Thanks for calling. Xxxxx now handles my finanaces. You should have their info on file, but anyway, here's their number and address... Then you hang-up.)
So they set up a payment plan you can handle, and they don't pay anybody. When Citbank calls them(not you), they say, "Ok, we have $2100 in the account. Would you like to settle for that today?" Citibank wants their 20 grand, so they refuse. A few months later, the same thing happens, but you now have $3500. They decline. Eventually, they settle, and move on to the next guy.
Cons:
Credit line got destroyed
The smaller balances were paid off first.
They take a "cut"
My savings were maybe 20%
Pros:
The debt collection stuff became less of a bother-- just fwd the mail on.
Peace of mind
Actually did get "debt free" within 3 years
Certainly, you'd want to do some research before entering a plan like this. Honestly, it was painful, but I feel well worth it. What lead to my decision was: 1) I had moral issues filing for bankruptcy 2) I wanted to keep my truck. 3) Any payment plan I was offered was for more than I was already paying 4) I trusted the guy who hooked me up.
This was before the modified personal bankruptcy laws. Although I am not certain, I believe freedomdebtrelief dot com offers a simillar program.
Keep your head up. If you're willing to change some behaviors, there is a light at the end of the tunnel.