We have assisted many clients over the years by negotiating with their creditors in lieu of filing bankruptcy. This approach to debt relief is attractive to many creditors. Even among creditors who prefer that you file bankruptcy so they can write off the debt and move on, negotiation is almost always a worthwhile attempt to avoid bankruptcy.
A note on Debt Relief Companies: These companies attempt to negotiate reductions in the amount of money people owe or adjustments to current repayment cycles. Many of these companies are less effective than they would have you believe. Some are not reputable. Be careful!! Consider a debt relief company that is paid on the basis of what they save you. Avoid up front flat fee arrangements. NOTE: Your credit will still be negatively affected.