People who wish to avoid filing for bankruptcy can do nothing if they are judgment-proof, try to negotiate with their creditors, or enlist the services of a debt management agency, notes HowStuffWorks. People who are judgment-proof may experience a change in their status if their financial situation improves.
People who have little to no income have nothing for a creditor to take in a lawsuit and thus are judgement- or collection-proof, states HowStuffWorks. Creditors may decide to write off the debt in these situations. People can also negotiate payment plans with their creditors, though the creditors decide if they are willing to do so. Debt management agencies help consumers negotiate with creditors to work out payment plans to avoid filing for bankruptcy.