Types of Debt Relief in Phoenix

Phoenix Debt Relief Attorney

There are many debt relief options available to residents in Phoenix, Arizona. In Phoenix, like most of Arizona, there are individuals, couples, and businesses who are in financial trouble who can attest to the fact that this as a very stressful situation. Unfortunately, creditors have little sympathy for debtors and can introduce a lot of pressure to get a person to make payments. Our Phoenix debt relief lawyers at the Bornmann Law Group, PLLC do all the work to provide you with the best debt relief options.

• Debt settlement – Debt settlement is a very popular type of debt relief for individuals in Phoenix who are hoping to avoid filing for bankruptcy protection. Many creditors are willing to settle a debt for pennies on the dollar, as an alternative to legal action or receiving no payment at all.  With debt settlement the creditors will receive something for their debt whereas in a Chapter 7 bankruptcy, creditors may receive nothing for the debt that they have carried.
• Debt negotiation – Debt negotiation is most helpful for people who don’t want the negative effects of non-payment of a debt or bankruptcy on their credit. In the event that one is unable to afford the payments they owe for a certain debt, they can negotiate with their creditor for more favorable terms, including a lowered interest rate, waiving of penalties and fees, or a longer period of time in which to pay off the debt, thereby lowering the payments.
• Debt consolidation – Yes, debt consolidation is a debt relief option, however, remember that Debt consolidation companies work on behalf of debtors by accepting a monthly payment from them, and then splitting up the payment to their various creditors. In theory, this provides the debtor with a more easily manageable way to pay their debts.  There are many downsides to debt consolidation to consider.
• Bankruptcy Chapter 7: Chapter 7 bankruptcy is the most popular chapter of bankruptcy to file for people in Phoenix.  Chapter 7 bankruptcy is a good solution if you have no real hope of paying off your debts. Once bankruptcy is filed, all creditor action against you is suspended and at the end of the process all of your debts that can be discharged are canceled.
• Bankruptcy Chapter 13: People in Phoenix who are hoping to keep their home or who make a substantial living but have out-of-control debt often consider filing Chapter 13 bankruptcy.  Chapter 13 bankruptcy is very helpful if you have a good income and want to pay your debts but have fallen behind. As in Chapter 7, creditor action against you stops. You keep your property and work out a plan to pay off your debts over an extended time (usually 3-5 years).

Please contact our Phoenix debt relief lawyers at our Phoenix law offices to schedule your free consultation; we will explain the different forms of debt relief and how you might benefit.