Need some advice, I'm falling fast.

Ok in june i started with a debt consolidation company. I backed out at the last moment after negative feedback. From June til now October I have not paid my credit cards. I am in debt over $40,000. I now receive notices to pay balance or accounts will be in collection. Some accounts are already in collection. 2 cards have sent in lowered balances for me to pay. I went and got a 2nd job to get me out of this mess. I have been thinking about bankruptcy but I am not sure. I dont want to wait any longer and need some help. Should i go through with debt settlement? or bankrutcy? I keep hearing horror stories with these comapanies with debt settlement or consolidation. I also heard that you can do the same thing the companies are doing yourself. By just calling the companies. Some are just telling me I owe so much i might as well go bankrupt and start over. Im also trying to redo my home loan and all this negative credit is affecting me. Im in way over my head. Can anyone help?