If you work with a legitimate provider, debt negotiation can be a big help when you're drowning in debt and dealing with creditor harassment. Unfortunately, there are some types of debt that don't typically qualify for settlement.

The five types of obligations that are the hardest to resolve through debt negotiation are student loans, tax debt, alimony and child support, utility bills, and secured debts. The fact that they present challenges, however, doesn't mean there are no options.

Student Loans

Unfortunately, student loans are extremely difficult to discharge through bankruptcy, and lenders know it. Student loans are rarely written off and forgiven, and if the lender obtains a judgment against you, they can enforce it through wage garnishment, liens and other harsh means.

With the help of a legitimate debt negotiator, however, you may be able to get some relief through deferment, forbearances or loan consolidation. It may even be possible to negotiate changes in the terms to lower your monthly bill.

Taxes

Although most federal, state and local tax debts are also hard to discharge in bankruptcy and aren't eligible for debt settlement plans, there are a lot of options.

The IRS has processes in place to set up payment plans and negotiate settlements, and the IRS is often more than willing to help you out. You can even propose your own monthly payment, and it's often accepted.

You can also try meeting with an IRS representative about an "offer in compromise," which could reduce the total amount you owe, including reducing or eliminating penalties.

You will end up paying interest and, if the IRS forgives some of your debt, you will have to pay taxes on that amount as if it were income.

Alimony and Child Support

Communication with the courts is essential if you're having trouble paying support obligations. The amount you owe isn't automatically recalculated if you lose your job -- you have to ask, and you have to do it right away.

If something has changed and you can't make your monthly payments, ask for a modification of your child support or alimony order. For missed payments, you may be able to arrange a payment plan or even seek hardship assistance.

Utility Bills

If you don't pay your phone, electricity, gas, water or other utility bills, they'll just cut you off. Before that happens -- or even afterward -- you can often get help if you're in financial trouble. Most utilities offer payment plans and deferments for people having debt problems, and payment assistance programs also exist.

Auto Loans, Mortgages and Other Secured Debts

Secured debts are those where there is collateral against the loan. The deal is that you pay your bill or they take the collateral.

"Credit card bills are important, but if you have to choose between paying your Visa bill or making your house payment, you should make your house payment," says Jessica Cecere, president of the Consumer Credit Counseling Service in Florida.

If you can't, your best options are to call the lender and see what help is available, or to hire a legitimate debt negotiation provider, such as a nonprofit or an attorney, to help you.

Related Resource:

"Debts that debt settlement can't solve" (Bankrate.com, April 14, 2010)