bankruptcy or not

Whether or not you file for bankruptcy is your decision, but based on the facts that you have presented it certainly appears to be a viable option for you.  I think that it would be hard to negotiate repayment and/or settlement terms with your creditors considering your limited income.

What you need to do is to speak to an attorney as to your situation.  Since money is an obvious issue, see if you qualify for Legal Aid or see if they can recommend someone to help you.  Also, check if there is a law school nearby to where you live; they typically run free/low cost clinics that handle these type cases.  Additionally, you can contact the local Bar Association in your county; they may have a list of attorneys who will take your case "pro bono" (for free).  Finally, contact your state's Department of Social Services, they may be able to refer you to free legal services.

In the meantime, here's a link to a site that will explain bankruptcy further: http://www.uscourts.gov/bankruptcycourts/bankruptcybasics/chapter7.html

Best of luck.