Q: What options does one have for debt and credit relief before bankruptcy? Or is it an option worth pursuing?

A: You can negotiate with your creditors for reductions in principal and payments with the threat of bankruptcy if they don't agree. Otherwise, it's looking like bankruptcy.

A: There are many debt relief companies who you can consult. However, Many wind up still having to file bankruptcy in spite of the debt relief.

A: Be very careful of "debt settlement" advertisements. Some are okay but most are not. You could do better yourself with some research. Or you could engage a bankruptcy attorney to attempt a debt settlement and if it doesn't work you move right into a bankruptcy petition. Just know that you MUST have some upfront money to settle debts. They will take less but almost never will they agree to a payment plan so you must have liquid cash ready. In their minds you have already proven you can't make payments successfully.

A: I agree with Mr. Greene's comments. Settlement with creditors can be difficult and the most successful ones usually require a lump sum payment rather than monthly payments. Also you should be aware that settlement of a debt can create "forgiveness of debt" income - the amount not paid to the creditor can result in a 1099 tax form being filed which must be included as income on your tax return. The biggest issue I see with debt relief companies, or debt consolidation companies, is that proper analysis is not made to consider whether payments being set up for settlement are feasible - which requires an analysis of income and monthly necessary living expenses to determine what you can actually afford to pay. I recommend talking with an experienced bankruptcy attorney who also can give you advice and analysis of the non-bankruptcy options. Many of us do that and can be very beneficial to assist you in making a decision as to how to proceed.