Look at settlement if you forsee not being able to make payments in the future, if you have missed payments recently, or if you haven't made payments in some time.  It should always be considered before filing a Bankruptcy.

A debt settlement company will negotiate lumps sum settlements with your creditors for pennies on the dollar. 

Settlement-Pros

Settlement is the quickest and cheapest way to get out of debt other than a Chapter 7 bankruptcy. You can expect to be out of debt in 36 months or less.
You can expect to save 50-60% off of your current balances with your creditors.
You are in control of your money.
No bankruptcy on your record.
Medical bills over a thousand dollars can be included
Accounts in collections can be included
If you are self employed you can not be garnished.
Hit the reset button and start living a debt free life again.

Settlement-Cons

If you are just falling behind when you enter into a settlement program, you can receive calls for about 180 days from your primary creditor.
These programs are for UNSECURED DEBT only.
Accounts under $750 are not eligible.
Your creditors may seek a judgment.
Miltary star cards are not allowed.
IRS debt is not eligible.
Student loans  aren't allowed(click here for student loan information)