The following is a guest post by Think Debt Relief. If interested in guest posting at Everyday Finance, see these guidelines.

In 2008, more than one million Americans filed for bankruptcy protection from their creditors. In 2005, bankruptcies rose to more than 2 million, prior to changes in the bankruptcy code that made getting a fresh start a bit harder. Since that time, the number of bankruptcies has dropped, but analysts noted that the number of new bankruptcy filings has increased substantially in the past year.

One of the unintended consequences of the new bankruptcy laws has been that Americans are now carrying larger debts longer before seeking some kind of debt relief assistance. This assistance ranges from credit counseling to debt settlement to loan modification to personal bankruptcy, but one thing remains constant: Consumers are coming in with higher debt loads.

The new bankruptcy regulations impose a means test to determine whether the filer has the ability to repay his debts or not. Those who do not have the means to repay may be allowed to file Chapter 7 bankruptcy, which permits the discharge of certain debts after the filer has sold any nonexempt assets and used the proceeds from the liquidation of those assets to pay eligible creditors. Those who have the means to repay at least some of what they owe may file for Chapter 13 bankruptcy protection. Under this section of the bankruptcy code, filers reorganize their debts and work out a payment plan that remains in place for three to five years, after which any remaining debts may be discharged at the court’s discretion.

Consumers who can’t afford the monthly payments of a credit counseling debt management plan and who are considering bankruptcy may find another form of debt relief in debt settlement. In a debt settlement program, professional debt negotiators work with a consumer’s creditors to try to negotiate lower payoff amounts than what the consumer owes.

Although some people may contract the services of a professional debt settlement company, consumers may also attempt to negotiate debt settlements themselves, working directly with their creditors. Neither option, however, is a guarantee that a creditor will agree to settle. Unlike in a bankruptcy, in which a creditor is required to abide by the bankruptcy court’s decision on any payoff amount deemed appropriate, a creditor isn’t required to accept any debt settlement offer for less than what a consumer owes.