Bankruptcy is a legal process that allows you to eliminate or repay some or all of your debts under the protection of the bankruptcy court. However, an alternative to filing for bankruptcy is debt negotiation, where you negotiate with your lenders to pay less than what you owe. The lender agrees to accept this reduced amount as full payment, effectively satisfying the debt. This method can be particularly successful if you have substantial credit card debt or if your debts are already in collections. By negotiating a lower repayment amount, you can avoid the complexities and long-term effects of bankruptcy while resolving your financial obligations.