While you should absolutely consult with a bankrupty attorney who can evaluate all the specifics of your unique situation and give you the best advice, in general terms, the situation you describe is appropriate for bankruptcy:1) 10-13% is a fairly low settlement; it's therefore likely that not all the creditors will accept this. Therefore, depending on how many do, you could end up still owing, say, 1/3 to 2/3 of the money to creditors, or $60k - $120k+...in addition to the money you'd owe the relative for the payments. That means that even if you can settle some debt, you may be forced into bankruptcy anyway; if that's goiing to happen, you're better to roll all the debt into it and discharge as much as possible, since filing bankruptcy on $70k is the same to your credit as filing it on $180k+.2) Inheritances are the prototype "don't count your chickes 'til the eggs hatch." You don't know when the uncle will pass (e.g. I have a 97 year old uncle still going strong); you don't know if health, nursing, etc. costs will eat up his inheritance; he has the right to change his will at any time that he's still mentally competent; he could have debts that will  first have to be satisfied from his estate before distribution; etc. Whatever you get is a windfall, but you can't base plans, one way or another, on it.