Bankruptcy should be your last option, and you will find that BK will not resolve most of your problems, and create many more problems.
There are two kinds of BK that are available to the average person, Ch13 debt repayment and Ch7 liquidation. Both have severe repercussions and lasting effects on your credit (7-10 years, after discharge). And the calculations required under the 2005 BAPCPA are complex and may require help to understand. Ch7 liquidation is the more severe course, and the trustee would liquidate assets that exceed exemptions (vary by state) to pay your creditors. Ch13 debt repayment is hard, and only 20-25% of those who pursue that route complete the debt repayment plan. Your credit score for either course would suffer greatly (200-250 points) and would remain reduced for years, especially since you would have to rebuild credit. And the law is flawed both in design and execution as there is no reward for successful debt repayment, few finish their repayment plan (20-25%), the mean recovery for unsecured creditors in repayment is zero (thus does not help creditors), and leaves the debtor with damaged credit for years (not a fresh start).
Although you may have made some decisions that have placed you in a difficult position, you can find solutions to resolve these problems. You may find that simply learning to make better choices will improve your situation. Take a financial education course (such as the Dave Ramsey course), and learn how to budget, and make better choices. The LearnVest website offers a simple way to budget by dividing budgeting into only three (3) categories with suggested percentages for each, essentials (<50%), financial priorities (>20%), and lifestyle (<30%).
The damage to your credit from the derogatory effects of BK would linger for years, but the damage from poor payment history declines much quicker, and loses most of the effect after 2 years (and should you keep the accounts open, leaves you with good history and longer account history), thus the effects decline to minimal after as little as 2 years of good behavior/payment history.
Make a plan that prioritizes the debts, and how you will resolve the problem, and work the plan. Based upon the income and debts you mention, the situation you have may not be as bad as it appears. You may be getting bad advice, especially from a debt settlement company that might be more interested in their fees than in your problem.
Since you "want to play fair and continue with payments, but when people start to get greedy like this I am ready to just stop caring", you really need two things, a plan, and a friend, someone who you can talk to honestly and openly, and who can support you as you work through the plan you make.
Since you "would prefer the option that will give me the most peace of mind and allow me to start saving money as soon as possible", you need to find an approach that fits your goals. Your statement that you "don't plan on ever using credit again", fits with the Dave Ramsey philosophy and resonates with many of us who have learned that those who grant credit are often harsh masters.
Now that you have provided more information, the advice below expands upon the above reflecting upon your specific situation.
Since you make $62K/year, you may be close to the median income, and the BAPCPA (Bankruptcy Abuse Prevention and Consumer Protection Act of 2005) has a presumption of abuse for filing Ch7 when you have above median income (for your state, check the law). As you may be pushed into Ch13 debt repayment anyway, examine what you could do to repay the debt (over 5 years, 60 months, as that would be a Ch13 repayment duration).
Since you have $8K of revolving (unsecured?) debt, that would be repaid in Ch13 over 60 months at about $133/month (no interest), but you would also be paying 10% to the trustee. There might be some portion of your auto debt which is unsecured, and also be repaid unsecured, suppose that is $3000. That would add another $50/month to the plan.
The car could be repaid over 60 months (including interest), so you might be repaying $300/month for the car (estimate), although the payment could be higher or lower depending upon how much of the value of the car is unsecured. The trustee might object that the car is too expensive (depends upon the value, and the trustee), and require be liquidated.
Since BK excludes relief for student loans, you might find yourself paying the student loans at the same payment.
Your $62K income suggests that you have about $4200/month (guess, after taxes). The mortgage payment is higher than 25% ($1050-1100 would be ideal for your income). But after your mortgage payment you should still have about $3900. Even with $300 for credit card debt, $500 for car, and $400 for student loans (guessing), that leaves $2700 for essentials (utilities, food), lifestyle (cellphone, entertainment), and savings.
You might find a friend who is good at budgeting who would be willing to help you craft a budget and be your "responsibility partner" to help you stick to the budget.
Here is a sample plan (your mileage may vary),
Essentials (50%, $2100): $2180
- Mortage $1280 (about $200 high for your income)
- Utilities (gas, heat, water, trash) $300
- Food $400
- Fuel $100
- Car Insurance $100
Financial (30%, 1230): $1250
- Car payment $500 (<10% of income, goal $400, sell car get cheaper?)
- Revolving payment $300 (focus to payoff first, smallest debt, and highest interest)
- Student loan payment(s) $400
- savings $50 (you need $1000 emergency fund)
Lifestyle (20%, 840): $500 (pick up slack here, as you have high debt load)
- internet $50 (limit your internet, can you dump cable for netflix?)
- cable $50 (limit your cable bill)
- entertainment $100 (limit your costly entertainment until debt reduced)
- dining out $100 (limit your dining out which you have debt)
- (cell)phone $100 (could you reduce to $50 to pay more against debt?)
- clothes (limit your spending until your revolving debt under control)
- other ?
