This is an idea I came up with, although I don't think I'm the first to come up with this idea.
Black holes don't exist. Instead what we call black holes are actually dark stars.
What is the difference between a black hole and a dark star? Nothing can escape from a black hole because the escape velocity is greater than the speed of light. The escape velocity from a dark star is very close to (but not quite) the speed of light, so light can in principle still escape.
Why don't black holes form? Time runs slower in a stronger gravitational field compared to a weaker gravitational field. In a black hole, time would stand still. Therefore, as the star collapses, time runs slower and slower until the star is just slightly larger than the Schwarzschild radius at which point time is nearly at a standstill. The closer you get to a black hole, the longer it takes, so it never quite reaches a black hole.
Conventional wisdom would argue that from the frame of the black hole, everything runs normally. I believe this is wrong. For a black hole to form, an infinite amount of time would have to pass outside of the black hole (such as here on earth), but since an infinite amount of time has not and can not ever pass, a black hole can never form. This would solve the problem of information loss in a black hole.
P.S. Einstein, the brains behind general relativity that predicts black holes, never believed in black holes.