should I file for bankruptcy since debt reduction company is not helping my situation

You should at least take the time to consult a local bankruptcy attorney to see how things would go for you if you do file bankruptcy. Depending on your circumstances and situation, bankruptcy might work very well, or might work very badly. Don't jump that way without a full understanding of whether you qualify, and if you do, whether it would be helpful, or whether you would risk losing important assets.

Many of the "debt reduction companies" and "mortgage rescue companies" are really traps for the unwary, looking to take advantage of people with financial problems who would do much better wtih other alternatives.

The National Association of Consumer Advocates (NACA) is a non-profit consumer advocacy organization. NACA maintains a web site at www.naca.net where it lists geographically consumer law attorneys all over the US. If you don't already have an attorney, please look there for someone in your area who specializes in consumer debt collection defense and bankruptcy to review the details with you and advise you.

Your question really shows just how bogus and ineffective these debt reduction companies may be. Consumers are fooled into believing they are handling their debts, but your creditors often have never consented to be involved in the program! The result all too often is the creditor goes right ahead with debt collection, including adding interest, fees, and proceeding with lawsuits.

The real tragedy is that you probably paid that debt reduction company more money than it will probably cost to hire a good bankruptcy lawyer!

It sounds like your credit is pretty well ruined, and you should certainly be consulting with an experienced bankruptcy lawyer.

You need to meet with a lawyer to see just what bankrutpcy may be able to do to resolve your predictament. People need to be VERY CAREFUL in dealing with any so-called "debt reduction" company. Any company that requires you to pay in advance before they begin working on your case is to be avoided. May states are in the process of passing laws to make these types of arrangements illegal.