Finance House

What is the name of your state? FL

I currently owe 40,000 dollars of credit card debt to about 10 different companies. About a year ago I got a second job that allows me to make the minimum payments, but not much more. I now find myself, after one year of making payments, in no better shape than I was before I got my second job. I want to fulfill my obligation to pay these debts I owe, but I am almost 40 and cannot work two jobs for 10 or 20 more years.

Recently I came accross a company on the internet (Tower and associates) that claims it can negotiate with creditors to lower the principal to like 40 cents on the dollar. I have called them up and it seems like I could handle their program, but I am worried about one thing. They will put me on a 36 month plan paying like $850 a month, but that money will not go to the creditors initially. They save up the money and use it to settle with the companies. If they can actually do that it sounds great, but it seems like it will put me in a very risky situation. If they take the money and run, I have to pay all the fees and backpay from neglecting my payments for half a year. ( Just to give a little more info. on their plan, they say that the $850 a month for 36 months is like a worst case scenario. If they can settle for 25 to 30 cents on the dollar, I may only pay 30 months instead of 36 months. Sounds good to me, but I don't want to be conned.)
Is this a good idea?

OR

Should I file for bankruptcy? I own a car and a house. I feel an obligation to pay my debts, but I may have no other choice than to file for bankruptcy. My only reservation is that with my second job I can make the payments, and I am under the impression that you have to be in a situation to where you are unable to make your current payments. Is that correct?

If someone could please give me advice I would greatly appreciate it.