Finance House

What is the name of your state? Oregon

I need advise. my spouse and I are in debt to the tune of apprx. $37k. I have been reseaching info on the internet about bk, probably chapter 7. then ran into a debt relief program called debitxs located in tx. this program is a co. that negoiates with your creditors and gets you a settlement all for a 15% of the $37k fee. this company advised me to stop paying the creditors that I want to settle with and put this money in a savings acct. until a settlement has been reached and ok'd with us usually 30-45 cents on the dollar when ok'd, we get a cashiers check from the money we saved and overnight it to the creditor after we get a letter of settlement from them. It says I could be debt free in 32 months. I guess I need to have some feed back, I have found that the creditors can submit to the irs the differance between what is owed and the settlement as income. Is this to good to be true or does someone out there have other suggestions. I don't want to ruin my credit anymore. and I have closed out most of my accts. still behind in some but not all. just looking for some much needed relief.