Trying to settle debt

I have been in a bad situation for the past few years. I was
unemployed and had to live on my credit cards. I have reluctantly
refused to file for bankruptcy. Even though some of my friends have
done it and survived, now with a new house and everything. I've
saved around 20,000. I want to settle close to 50,000 worth in debt
and move on with my life. I'm just afraid something will go wrong
and I will still end up owing money afterwards. I live in
California and I hear that creditors can sell off the residual
between what is owed and the settled amount to other creditors. Has
anyone had anyluck settling debts.