No longer able to make minimums

You are in a similar situation to what I was in, except that I had $250,000 in debt. I couldn't qualify for a Chapter 7 and my employer frowns on bankruptcy. We have been in for 6 months and have had 4 accounts settled so far.

These are tremendous amounts of debt and could take quite a while to pay off, even in debt settlement. Why are you trying to stay out of BK? If you qualify for Chapter 7 and it won't affect your employment, it is not that bad a way to go.

Take a look at my blog for the best things to look for in a Debt Settlement company.

Debt settlement could be a viable option for you if you can afford to pay monthly to settle your debts. A reputable debt settlement company should do an in depth financial analysis to determine if debt settlement is right for you. You can expect your debts to be reduced by up to 60%. You also have the option to hire an attorney to handle your debts but their fee will be much higher then a debt settlement company. There are debt settlement companies who have attorneys who oversee your file...just make sure they are licensed in your home state. Also, make sure the debt settlement company does not front load their fees. In other words, your money should be going towards paying your debt from day one...not just paying the fee. Debt settlement is an alternative to bankruptcy. Bankruptcy can be some people's only option, but it has the most damaging affect on your credit and you may still have to pay back some of your debts.

With that high of a debt you will likely end up having to file bankruptcy anyway to protect your self from the lawsuits against you, of which I can assure you there will be more than one. Not to mention, as soon as you stop paying to save up for settlements, your debt amount will skyrocket as they all jack your interest rates up to the maximum, apply late fees and over-the-limit charges, etc. Your total amount should go up to over $300K (estimated) frighteningly quickly.

Of course, if you can come up with around $150K in cash in around 6 - 8 months you should be ok.

However, I'd say Chapter 13 is your best bet (you will likely not qualify for 7).

oh that makes my heart pound! i cant imagine that kind of money let alone having to come up with it in 6-8 months. i have said it many times before settlement can be a great tool, but in your case if i was you i would file 7 and be done with it. you are surely gonna end up in front of the magistrate