The easiest and cheapest way to deal with debts – whether they are personal debts or business debts – is to start by speaking to your creditors. Contact them and ask if they will accept a reduced payment or a payment plan to pay off the debt.
The difficulty with an informal deal is just that – it is informal. You may be able to settle with one or two creditors, but dealing with a large number can quickly become very difficult. Worse, there is no protection or guarantee that your creditors will not change their minds. Some may expect interest, some may offer a discount.