Debi - have you seen a Financial Counsellor? The service they offer is free and all avenues/options can be investigated.
Funnington - sometimes bankruptcy is the best option, its not always as easy as having someone negotiate/talk with creditors for someone. The negotiation made with a creditor does not always change a situation enough, and this person is looking at an issue that is not short term - most negotiations and hardship arrangements with creditors are based on the issue being short term not permanent.
I am a Financial Counsellor, bankruptcy is an option that is presented to clients when the situation may be appropriate, however it is usually just one of the options provided with the pros and cons carefully gone through. It can be a great relief for some people who have thought it through and made an informed decision.
ETA - you should not have to pay someone to assist you with completing bankruptcy paperwork. A Financial Counsellor may be able to go through it with you and ITSA has well trained staff that can assist you. Also, you do not have to include all debts in a bankruptcy - eg if you have a secured car loan you can opt not to include this debt and continue to pay it so that you can keep the car (there are calculations/rules around vehicles).
Edited by naturalgoodness, 15 January 2013 - 08:19 PM.