Are there bankruptcy alternatives in Phoenix?
There are bankruptcy alternatives that may right for some people, but bankruptcy is often the best option for people buried in debt. Understanding the bankruptcy alternatives should always be considered before filing for Chapter 7 bankruptcy or Chapter 13 bankruptcy in Phoenix.
You being harassed by creditors?
If the only reason why you are considering filing for bankruptcy is to stop harassing phone calls from creditors, then you may want to consider one of the bankruptcy alternatives. There are laws and regulations governing the conduct of bill collectors. Those laws are made to protect people like you from undue harassment by creditors and overly aggressive collection activities.
You should read our article: How to deal with bill collectors, before making the decision to file for Chapter 7 bankruptcy or Chapter 13 bankruptcy in Phoenix.
Try negotiating with creditors?
In many cases it’s preferable for creditors to negotiate with consumers rather than file for Chapter 7 or Chapter 13 bankruptcy in Phoenix. This is sometimes a good tactic if you have for example been unemployed for a period of time but now you are working. You fell behind on your bills because of your lack of income but with your new job you can keep your bills current and pay a little bit more each month to catch up arrearages. Some creditors may be willing to allow you to do that while others may be less reasonable. However, if you’re able to avoid filing for bankruptcy in Phoenix by negotiating with your creditors then this tactic may be a good solution for you.
For specific information on how to negotiate with your creditors, see our article, negotiating with creditors.
Contact a credit counseling agency
Not everyone is comfortable negotiating with the creditors. That is why there are many credit counseling agencies that can help you. Credit counseling agencies are experience dealing with collection agencies and they can often work out solutions that you would not be able to work out on your own. They can often work out a payment schedule to fit your budget and in some cases, they can reduce the amount you owe, remove penalties, reduced interest rates, and provide other services that may be helpful.
You do want to exercise caution when seeking out a credit counseling agency. They should be properly licensed and a nonprofit organization.
A list of credit counseling agencies can be found at www.usdoj.gov/ust. You can start there but you can always give us a call at Phoenix fresh start Bankruptcy Attorneys, we are here to help.
An important thing to remember though, about credit counseling agencies, is even though you are engaged with them, you do not have the same protections as filing a bankruptcy in Phoenix. Additionally, there is no guarantee that your creditors will work with the credit counseling agency. In most cases they want their money now. This can sometimes leave you vulnerable to legal actions, whereas you would be protected from such things by filing bankruptcy.
Should you just Do Nothing?
In some cases, the best choices just to do nothing. If you have little to no income, no substantial assets, nothing to be garnished, reprocessed, or foreclosed on, then you don’t have much to lose. Your credit will take a beating, but if you’re truly in the above situation credit is probably not something that you are concerned with. In many cases, you will owe a relatively small amount to several creditors. It’s usually not worth their time to take legal action against you over a few hundred dollars. That is especially true when you have very little income and no assets. Some people get stretched for years, struggling with debt, before they consider bankruptcy. However, if you can stretch things long enough, past the statute of limitations to sue for debt, then there is little your creditors can do to you other than ruin your credit. There is even a limit to how long a creditor can continue to report negative things about you for a debt on your credit report.
At Phoenix fresh start bankruptcy attorneys, we understand deciding to file for bankruptcy is a difficult thing. That’s why when you contact us you will speak to a helpful, experienced bankruptcy attorney. Our bankruptcy attorneys will discuss possible alternatives to filing bankruptcy in Phoenix. There is no charge for this consultation we simply share information with you and allow you to make the best decision for your situation. Put your mind at ease, give us a call today.