I was in the same position and considered making a consumer proposal. That's when a trustee, negotiates, on your behalf to make a partial payment on the debt, spread out over time.

I didn't even have the budget to do that so wound up declaring bankruptcy, which was hard on my ego, but wound up saving me financially.

I'm not sure what country you're in, but here in Ontario, bankruptcy is a fairly straightforward process, provided you're low income, and it's your first bankruptcy.

That does however do a serious number on your credit rating, and limits your ability to get credit cards, but I can live without credit cards until I get back to work.

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