Okay Ive never been in a serious debt problem, so this question comes from a place of privilege and ignorance:

Why do these gurus insist that these individuals shoulder the entire burden of multiple parties' bad money decisions? The credit companies took a risk lending these people money. The collection companies took further risk assuming they can recover a portion of the debt.

Do Dave Ramsey or David Hammer ever suggest that the debtor negotiate a pennies-on-the-dollar amount to wipe the debt? If that is an option (and I believe it is), why would these advisors hector their audience to flog themselves with humiliating solutions like shitty side jobs and "sell your best operating car"?