As I said before, this is ceratinly useful information to know, and should be factored into his decision. But also, he needs to figure out waht's important to him. If his main priority is his FICO score, and being able to get credit again asap, then yes, as you say, declaring cp. 7 is porbably the best way to go (Althoguh it is my experience that people who get so far in debt are generally not very eagr to get more credit again) But if, as he says, he is worried about his work finding out, or having to disclose the BK to prospective jobs, then he may wish to consider the credit couneselling agency. Yes, any new employer will likely see it if they check his credit profiule before hiring...but he will not have to disclose it, nor is there any reason or need for him to inform his current employer.
If you want to go with a debt consolidator then you will end up paying their fee upfront whether they disclose that or not. Most of the time only unsecured debt will qualify. As a good debt lawyer will tell you, you can negotiate this yourself, you just have to stick to your plan and be prepared to spend 12 months doing it. If you do get a 1099 from the credit card company for the difference from what you owed you may be liable for taxes. Talk to a tax attorney, you may be able to declare insolvency which would be likely since you had to settle in the first place and avoid paying taxes. One more thing, there are debt collectors out there who may contact you in the future to talk about your debt even though you settled it. Never say anything about the debt and hang up, the debt collector is trying to refresh the debt in order to start the whole process over again.
assume so, but good question. typically you are supposed to update them if you have a change of job, add an additional retail account etc