<\/span><\/h3>\nWhile there are alternatives to filing bankruptcy include debt consolidation companies and entering into settlements with your creditors.<\/p>\n
Debt consolidation services try to work with your creditors in an attempt to get you a better interest rate or a lower monthly payment. The problem is that they are rarely able to get them all on board. Out of ten creditors, five will agree, three will take a wait and see approach and two will never give in. All too often, we see debtors hire these companies only to get sued some months later by one ore more of their creditors. The other problem is that this option doesn\u2019t do your credit score any favors. In most cases, the bankruptcy filer is going to have a better credit score a year from now than the person who entered into a consolidation.<\/p>\n
You can negotiate with your creditors to settle your bill for less than you owe. This can raise a tax issue where the IRS may construe the amount that your debt was reduced as income. Frankly, these settlements are elusive. Generally, the discounts on principal really are available where you have the ability to make large lump sum payments. If you end up settling on a long monthly stream of payments, do keep in mind that you aren\u2019t making any progress on building up your credit score.<\/p>\n
Phoenix Fresh Start Bankruptcy Attorneys is always available to provide advice about your specific situation before you file. We look forward to meeting with you.<\/p>\n","protected":false},"excerpt":{"rendered":"
Below is our fifth blog post in a series of blog posts regarding Arizona Chapter 7 Bankruptcy. Since almost every case is different, the best thing you can do to get your questions answered is meet with an attorney at Phoenix Fresh Start Bankruptcy Attorneys to determine the next logical steps. What Happens to My Bank Account in Bankruptcy? In Arizona, there are exemptions that can be used to protect the contents of your bank account at the time of […]<\/p>\n","protected":false},"author":1,"featured_media":2456,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[35,36,351],"tags":[],"_links":{"self":[{"href":"https:\/\/phoenixfreshstartbankruptcy.com\/wp-json\/wp\/v2\/posts\/2510"}],"collection":[{"href":"https:\/\/phoenixfreshstartbankruptcy.com\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/phoenixfreshstartbankruptcy.com\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/phoenixfreshstartbankruptcy.com\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/phoenixfreshstartbankruptcy.com\/wp-json\/wp\/v2\/comments?post=2510"}],"version-history":[{"count":0,"href":"https:\/\/phoenixfreshstartbankruptcy.com\/wp-json\/wp\/v2\/posts\/2510\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/phoenixfreshstartbankruptcy.com\/wp-json\/wp\/v2\/media\/2456"}],"wp:attachment":[{"href":"https:\/\/phoenixfreshstartbankruptcy.com\/wp-json\/wp\/v2\/media?parent=2510"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/phoenixfreshstartbankruptcy.com\/wp-json\/wp\/v2\/categories?post=2510"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/phoenixfreshstartbankruptcy.com\/wp-json\/wp\/v2\/tags?post=2510"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}