I watched you post this a few times and no ones really said they have done this, so I decided to make some suggestions. Basicly, Do what you can do, when your at the point of rock bottom what do you have to lose? What you want to do can’t really hurt, can it? Bankruptcy seems pretty much the last resort to me. And what is the worst thing that could happen? and how bad is that?
I know you’ve said you’ve worked out you budget and made the cuts where you can so, Pay all you necessities (ie roof, food, utilities, cars, if you can get out of a car payments try to do that) then what do you owe? How much total can you pay? How much do they each want ( do you meet the min on any)? Use logic now and a little math. I would use percentages for the amounts. IE I owe company Q $2000.00 which is 10% of the total debt; therefore I’ll pay them 10% out of “the what I can pay the creditors” pie. Does that make sense?
I would snow ball those payments also, so after one gets paid off take that payment down to the next. Does it work? I don’t know, but if you are going to do this I’d let each company know that you are going to do this ( only if your percentage is less than their min. and what the situation is(don’t forget to tell them you are considering bankruptcy, but trying not to). You are basically being your own CC, you just aren’t paying the fee. Read Dave Ramsey’s Financial Peace chapter on “dumping debt”, you may gain more insight in that. Hope this helped.