Saturday, December 31, 2011

Filing bankruptcy in Arizona: Credit card companies are unforgiving

I am a bankruptcy attorney in Phoenix ($995/Chapter 7) and one thing I've learned from clients is how unreasonable credit card companies have become. Several years ago they would work with you if you got behind on payments. There were more banks offering credit cards and it was very competitive to get your business. Now they have become very rigid and unwilling to give consumers a break. Even though they can pull "soft credit reports" on you to see that you are up to your ears in debt and cannot possibly stick to their strict terms, they won't back down or try to offer you a reasonable settlement on your debt. I see the offers they have given my clients and they're unrealistic for someone who has just lost a job or encountered huge medical bills. For example, if you're behind on $5000 in debt, they'll offer to settle with you for $4000. The problem is how are you going to come up with $4000? Then they send the debt to a third-party debt collector or attorney. Once the attorneys take over, it's a matter of weeks or at most a few months until they take you to court and get a judgment against you. Within days of getting a judgment they can start garnishing your paycheck. If you are self-employed, they can get at that money too sometimes. They can also seize your tax refunds. If you have a bank account with the same bank that holds your credit card, they don't even need to take you to court to get a judgment against you, the second you get behind in payments they can seize all but $300 from your bank account.

We have many clients who come to us who have tried to use debt management companies to help them work on their debt, but they have no luck (do a google search to see how realistic going that route is). For most people with unaffordable credit card debt, the best solution is to file Chapter 7 bankruptcy. Call us now to set up a free consultation.

The Alexander Bankruptcy Law Firm provides low low cost Chapter 7 and 13 personal bankruptcies. $995 Chapter 7 or $2500 Chapter 13 bankruptcies plus court filing fee. Free consultation with a compassionate attorney who will handle your case personally. Call 24/7, available to meet with you around your schedule. 602-910-6812. Conveniently located in Central Phoenix along the Camelback corridor. AlexanderBankruptcyLawFirm.com

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