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We start by calculating an estimate based on the type of debt incurred, how long your bills are past due, whether they are in default, and whether you have any defenses as to why the debt was initially created. Often we can settle debts for 25% of the face value, and usually we can eliminate interest so you pay only the principal. You would then need to save up funds to settle or borrow from family a lump sum to pay off the debts. The good news is that although more difficult than bankruptcy, debt settlement is usually easier on your credit score. Often clients have other reasons for not filing bankruptcy, such as they are not eligible (have already filed recently, earn too much money, or have too many assets), or they don't have enough debt to justify filing (for example, they have only been sued by one creditor and seek only to settle that one debt).

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That being said, there are some downsides to debt settlement versus filing bankruptcy. Debt settlement is far more costly since through bankruptcy usually all debts are erased completely. In addition, settled debts may still negatively affect your credit score, just not as badly as bankruptcy. Last and probably most importantly, you are not protected by the bankruptcy court while saving up money to settle debts, thus exposing yourself to judgments, liens, wage garnishments, and bank account setoffs. 

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An experienced attorney can guide you through the complexities and recommend the best option for you.