Should I try debt settlement before bankruptcy?

Strong skeptical take: most large-scale 'debt settlement' programs are worse than bankruptcy for most people. The math: you stop paying creditors and pay the settlement company into an escrow. Creditors charge off, sue you, and get default judgments. Your credit takes the same hit as bankruptcy. The company eventually settles some accounts at 40-60% but charges 20-25% fees. Forgiven debt over $600 is taxable income (with some exceptions). Total cost often exceeds Ch 7 attorney fees by a wide margin, with worse outcomes and 2-4 years of phone calls and lawsuits. If you have stable income and just need a payment plan, talk to a NONPROFIT credit counselor (NFCC-accredited) — different from for-profit settlement. If you can't pay even a counseling plan, file Ch 7. I'm direct about this because I've cleaned up too many failed settlement programs in Ch 7 a year later.