Charged Off Debt in Phoenix

Charged Off DebtIt will come as no surprise to most Arizona bankruptcy filers that the levels of credit card debt and student loan debt have are higher than ever. Despite these near exponential increases, many lenders and credit card companies are just continuing to dole out credit. Experts are in turn extremely worried that these credit markers will collapse like a house of cards.

Huge Credit Card Debt in Phoenix

The fact is that the average Phoenix household is now shouldering over $135,000 in debt. Currently, most studies show that near the close of 2018, consumer debt was not only at its all-time peak, but the trends were showing that consumer confidence was on the decline.

Beware of Creditor Solutions to Solve Debt Problems

Setting studies aside, if you are in financial bad times, perhaps contemplating bankruptcy, you are probably much more concerned about how to you are going to stop all the creditors and debt collectors.  Though it can seem like debt problems snuck up on you almost overnight, the reality is debt collectors generally let you know the status of your account every step of the way. While they may begin offering you different programs to pay off the debt, including extending payment plans and reducing or eliminating interest completely, collections activities will usually grow more aggressive.

You May End Up With a Charge Off On Your Credit Report

Once your delinquency has continued for four to six months, the creditor will normally dismiss the account as charged-off. This allows them to deduct the “loss” created by your debt for tax purposes. And at this stage, they often action off such accounts often in bulk with stacks of charged-off accounts to debt collectors that buy the accounts in volume, often without any real account history, let alone accompanying supporting documents. Debt collectors usually buy these accounts for nickels, maybe pennies on the dollar too. Once they have the accounts, they are often willing to negotiate somewhat discounted amounts with debtors and still reap near hundred to one returns on their investments.

A Charge-Off is Not Debt Forgiveness

Many debtors mistakenly believe that charged-off status means that the debt has been forgiven. The fact is that you still owe the full amount to whoever now owns that account and that is who you should pay. Unfortunately, many Arizona debtors find out too late they still owe the charged-off debt. They often get the bad news in the form of a summons and complaint tacked to their door or handed to them at work.

The Ultimate Charge-Off Solution

If you have reached the stage where your credit report reveals charged-off debt in addition to the debt you knew you owed, it is probably time to consult with a Phoenix bankruptcy attorney. Our four Phoenix-area bankruptcy law offices all offer payment plans that often enable you to pay all your attorney fees in monthly installments after your case is filed. I have been eliminating all forms of debt through bankruptcy filings for nineteen years and have supervised well over four thousand bankruptcy cases. We believe so strongly in second chances that we actually pay a company to help you rebuild your credit score after your bankruptcy case is done.

We look forward to eliminating your debts, charged-off and otherwise, and helping you get the fresh start reserve. Call us at 602-598-5075 today to arrange a free in-person, phone or video appointment with our bankruptcy attorneys.