Debt negotiation is often viewed as a financial solution that satisfies both the creditor and the debtor. This is because the debtor avoids bankruptcy and a long term negative mark on their credit report and the creditor does not lose all of their money. Bankruptcy conveys a message to your creditors that they are never going to see the money they lent you and you are left with higher interest rates, poor credit and a questionable financial future. You borrowed money in good faith and it's your responsibility to pay that debt. Of course, bankruptcy is a necessary step for some, but make sure you are getting good advice from a professional before you move forward with such a drastic solution.