@Terrificli -- That is partly true. When it comes to smaller credit card debts and such, the chances are good that they won't negotiate. Those institutions that hold smaller debts don't want to lower what is owed to them so that some other company can get paid in full.
When it comes to larger debts, you will find creditors much more willing to negotiate. Let's say a debtor owes $300,000 to a creditor. That debtor can afford to pay $90,000 of it back, but will file for bankruptcy if pressed for more.
Will that creditor negotiate? There is a good chance that creditor would love to negotiate a settlement. Collecting $90,000 is a lot better than getting nothing.