Arizona BankruptcyA lot of Arizonans are in the same boat these days; a bad economy and a bad job market have caused hard times and put a lot of people behind on their bills. Waiting for the bill collectors to start calling can be a nerve-wracking experience, and dealing with the calls once they do come adds a lot of stress to an already stressful situation.
Understanding what is going on behind the scenes can give you the facts you need to make a clear decision about your future once financial troubles begin. In this series we will look at the lifecycle of a bad debt to give you some insight into what to expect next and how to deal with it.
After the debt is charged off – the whole process starts over again, and again
Once the original creditor charges off the debt, they will likely do one of three things; transfer the debt to another collection agency, sell the debt, or file a lawsuit against you. Some companies may transfer your debt to a collection agency as many as three times – and each collection agency will pursue you for the debt for another 180 days until moving on to the next step.
After the collection attempts have been exhausted, the original creditor will sell the debt to a debt buyer. This can happen anywhere from six months to ten years after the debt becomes overdue. The debt buyer will first attempt to track down your address and telephone number, and will then barrage you with yet another round of phone calls and letters.
There is a little bit of good news once your debt makes it to a debt buyer. Because debt buyers purchased your debt as part of a large group of similar debts at a large discount from the original amount, they have a lot more room to negotiate a lower payment to settle the debt. Again, get any deals you make in writing.
At The Zolman Law, we believe that your life shouldn’t be defined by debt. We have helped hundreds of people just like you find the relief they deserve from harassing bill collectors, paycheck garnishment, foreclosures proceedings, and – most importantly – the constant worry about money and what to do about your debts.
We are a dedicated debt relief law firm. We help people from Phoenix, Mesa, Gilbert, Queen Creek, Chandler, Scottsdale, Apache Junction, Tempe and throughout Arizona file for bankruptcy or work through tough tax problems every day. We can help stop the debt cycle and give you relief from your overwhelming, burdensome, and crushing debt. Please don’t wait another moment. Call us right away – our attorneys will help get you the fresh start you deserve.