Bankruptcy should be a choice of last resort. It should not be used to remedy a short term financial crunch, nor should it be used as a form of revenge against a particular creditor. Similarly, making payment arrangements with a creditor can help in isolated instances once the financial problem has been stabilized. However, going to the well too often seeking payment arrangements can lead the creditor to become wary of the debtor's true ability to pay. 

The first step in determining which option is right for you, is to determine how serious your situation truely is. This may require the intervention of a third party, including a bankruptcy attorney, to analyze and examine the all of the facts. What may seem to be a major debt problem, may actually be rather minor. The problem may be solved by adjusting your budget or borrowing small amounts from friends or family. You must be careful not to dig yourself in deeper making it harder to get out in the future. This is why the debtor is strongly discouraged from borrowing from one credit card to pay another. 

Another thing to consider is your current credit rating. If you have relatively good credit, you will want to make every effort to keep it good for future needs. This means trying to pay all creditors in full. If your credit is already bad, continuing to make late payments may actually be detrimental. A banktuptcy remains on your credit report for ten years, but late payments stay there for seven years from the last payment. Often a bankruptcy shows that the debtor has taken control of the situation and if followed by good credit, shows future creditors that the problem has been resolved. Continued late payments may show that you are trying, but that the problem is not yet fixed. 

Finally, remember that the best of intentions is sometimes not enough to fix a difficult problem. There are professionals who deal with financial trouble every day. You should not be embarrassed if you get into difficulty, only if you delay in getting out. If you seek help and the person you are dealing with does make you feel embarrassed, find someone else. A true professional will seek to solve your problem without attempting to make you feel bad about choices in the past.