Dump them all and right away. To dump them you will need to file bankruptcy. But you must get it done before the settlement comes in. Your credit will take a major hit but again, not such a big problem with the settlement coming in. Once it arrives setting up credit again will be quite easy. You can use secured cards to begin with and also make purchases with a large percentage of down payment. Merchants will carry you since the risk will be very low and their reporting to credit bureaus will increase you credit worthiness fairly rapidly.
Dennis (cut2it)
The "debt relief" concept would only be viable if you are sure from that point forward you can handle the balances and other expenses of living. You should do a budget of income and expenses to be sure about this. Also factor in the percentage of possibility that the settlement will ever come in. Further once debt relief is implemented it will impact your credit score. Also the "vendors" giving the debt relief will usually issue a 1099 C which means the amount of the relief is the same as income to you and is taxable. That could be around $25,000 in income that will raise your tax bracket considerably. I feel strongly that you should still have a consultation with a bankruptcy attorney, financial planner, or a CPA. With this input it will be much easier for you to come to the best decision for your situation.
NCP
Investment R.E. Broker 30 yrs. & past owner of Mortgage Brokerage Company.