I have about 12,500 in credit card debt, I have spoken with the creditors and they have agreed to settle for 50%, but I don't have all the money now and they require a full payment and will not work with me on making payments on a 50% settlement. My only other choice is Chapter 7 is this sensible on a 6250.00 debt?

Actually you also have the choice of a chapter 13 plan, but boh require you try and work out a credit counseling first.

You one choice is to pay off as much as you can at 50 percent and then work out a payment plan with the others.