Executor's DutiesDebt Relief Lawyer Phoenix, AZ

Serious personal debt is often resolved by filing for Chapter 7 or Chapter 13 bankruptcy. These are powerful legal tools and are just what is needed in certain situations. However, bankruptcy is not appropriate for everyone, and some may hope to resolve their debts using a less extreme option.

Thankfully, there are alternatives to bankruptcy for those who don’t need to file for bankruptcy in order to get their personal finances back on track. Whether a given option is appropriate for you will depend on your financial circumstances and the types of debt you have. If you would like help determining which option best fits your unique situation, contact a debt relief lawyer Phoenix, AZ residents trust. At Kamper & Estrada, PLLC, each client’s situation is evaluated according to their unique circumstances, needs, and financial goals. Our Phoenix, Arizona debt relief lawyer team can help you find the debt relief option that makes the most sense for you and your family at this time. 

Working with Creditors Outside of Bankruptcy

Chapter 13 bankruptcy involves working out a three- to five-year repayment plan with the help of a bankruptcy trustee. This is essentially a series of negotiations to help you repay most debts over a longer period of time with fewer debilitating penalties (like late fees and high interest).

While filing for bankruptcy and relying on a trustee does give you a certain amount of leverage with creditors, you could potentially negotiate repayment plans on your own without filing for Chapter 13. Ideally, you would get them to agree to lower payments over a longer period of time, and to reduce interest and penalties.

What incentive do creditors have to negotiate? The knowledge that they would likely fare worse if you did file for bankruptcy. Filing Chapter 7 would discharge the debt entirely and they may not be able to dictate the terms of a Chapter 13 repayment plan as successfully. If you’re concerned that your creditors won’t negotiate fair deals or you simply don’t want to attempt negotiation without assistance, contact our Phoenix, AZ debt relief lawyer team for help.

Learn About Debt Consolidation Options

Repaying debt is usually easier if you have just one payment to make (rather than many payments to different parties). To achieve this, you may be able to consolidate debt by securing a home equity line of credit, transferring debt to a credit card with a low-interest introductory rate or taking out a debt consolidation loan. The idea would be to pay off your many debts using the available credit and then focusing on repaying the single loan or line of credit.

The caveat with these options is that you likely need a fairly decent credit score to get approved for loans or credit lines. Therefore, you’d need to act on your plan before your debt problems tank your credit score.

Are You Judgment Proof?

If you are considering bankruptcy because of a judgment a creditor obtained against you, it would be worthwhile to determine if you are “judgment proof.” Even if the judgment exists, the creditor may be unable to collect from you for one of the following reasons:

  •         You simply have no assets that can be used to satisfy the debt
  •         The judgment cannot be enforced because it was obtained in a jurisdiction other than where your property is
  •         There is a statute preventing the execution of the judgment

This bankruptcy alternative is admitted not likely for most people. But it never hurts to explore all of your options before deciding that you need to file for bankruptcy.

Contact Us to Learn How We Can Help You

The best way to learn whether bankruptcy is right for you is to speak to a Our Phoenix, AZ debt relief lawyer about all of your options. Our firm gives honest, straightforward assessments to each client, and we only recommend bankruptcy if it is truly in your best interest. Contact us today to learn more. We look forward to speaking with you.