Credit counselling allows the debtor to take control and get their financial situation back on track. Learning about shopping and spending habits and how credit score works can really help.
A proposal to creditors have make a lot of sense. It allows the debtor to set up a repayment plan that meets their ability to keep current.
Loss of job, relationship breakdown, health issues can all lead to difficulty in making all payment obligations. Bankrutpcy is a way to start over.