OK, that is debt consolidation. One needs to exercise caution as some of these companies are not very honest. Debt consolidation usually requires some kind of collateral (ie a residence). In addition to interest, you may have to pay "points," with one point equal to one percent of the amount you borrow. Failure to pay can result in losing the collateral.
One can also hire a debt negotiation company but first one may wish to negotiate directly with the creditors so as to avoid the company's fees. Basically one would work out a payment plan, and request that some of the principal, and the interest and late charges, be waived. The policy of the individual creditor will determine what they are willing to accept.
Information on debt settlement companies are here:
But the idea of bankruptcy is to give one a fresh start, so if one qualifies for bankruptcy that should be considered as an option.
Chapter 7 is known as the fresh start alternative; that information is here:
Further questions? Please post here to continue the chat.
Satisfied? Kindly rate positively so I receive credit for assisting you.
(no additional charges are incurred).
Information provided is for educational purposes only. Consultation with a personal attorney is always recommended so your particular facts may be considered. Thank you and take care.