Financial Problems... I need help....?

Ok i am 19 years old and because of illness i was unable to complete cosmetology school which was going to be paid for by student loans. since i had no choice but to quit, my federal student loans were dropped and now i have about $5000 to pay off. it has gone to a collection agency because i was without a job for seven months and i was unable to pay. i am now employed and make about a $900/month. i have an apartment, credit card bills, student loans from college, electricity bills, and food to pay for. i have tried many times to work with the collection agency and the smallest that they can make the monthly installments is $200! i cannot afford that! i can't afford a financial advisor either. whats worse is that since i can't pay they monthly installments, i am now having legal action against me and they have also attacked my credit score! i need to know if there is a way to avoid bankrupcy and somehow pay them off... please help!