Fighting Credit Card Debts in Arizona
Provided by HG.org
Are you an Arizona resident that has fallen behind on credit card debt? Is the credit card company harassing you with phone calls, letters, or worse, filed a lawsuit against you? If you find yourself in this situation, you have several options, and some are better than others. So what are your options?
1. Do nothing.
Probably not your best choice. If the credit card company has sued you, doing nothing will always result in a default judgment against you under Arizona law. This judgment will remain on your credit report for 10 years. Once a judgment has been granted, except for a very few exceptions, there is nothing that you (or an attorney) can do to dispute owing the debt, the amount of the debt, or the validity of the judgment. Under Arizona law, the resulting judgment will be valid for 5 years, and can be renewed by the debt collector/debt buyer until the consumer dies, meaning if your fortunes improve in the future you could suddenly find your assets being seized by the credit card company!
Indeed, when collecting a judgment under Arizona law, a debt collector/debt buyer can attach assets (including your home), garnish your wages, garnish your bank account, and sieze physical assets like jewelry, furniture, computers, electronics, cars, etc. And, with the current status of computer tracking of all consumers, debt collectors/debt buyers will find you and any assets you have that can be used to satisfy the judgment.
2. Negotiate with the credit card company or debt collector.
You can always try to negotiate with creditors. However, be prepared to be treated rudely and rather unpleasantly during the attempt to settle. Keep in mind that the credit card lawsuit is not only demanding the "principal" due, but is also suing for several years of interest and attorney fees, so there may be a lot of money on the line at this point, and chances are the first person you speak to is not going to be authorized to accept anything less than every penny they believe they are owed. Even if you are able to speak to someone, negotiating is usually only successful if you can pay a lump sum rather than simply resuming payments. Also, remember that if the credit card company agrees to accept a reduced lump sum, that debt which is written off will usually be reported by the credit card company to the IRS through a form 1099C as income.
3. Fight in court.
In order to start taking your assets to satisfy a debt, under Arizona law the credit card company first has to obtain a judgment against you. To do that, they have to go to court. That means you have a chance to go to court and fight for your rights. There are a number of possible defenses depending on the unique circumstances of your case. For example, violations of the Fair Debt Collection Practices Act can invalidate an otherwise legitimate obligation or even create liability on the part of the debt collector to you. However, this will not apply to every case. Many of the available defenses or countersuit options are going to be very complicated and technical, so you should contact an attorney. You can represent yourself in these cases if you absolutely must, and this is definitely a better option than simply doing nothing, but you will likely be much better served by retaining an attorney to assist you than trying to handle things on your own.
4. Bankruptcy.
Finally, the ultimate solution to out-of-control debt situations is very effective with regard to Arizona credit card cases, as well: bankruptcy. Bankruptcy will usually either wipe out all unsecured debts, such as credit card debts, or will allow you to restructure those debts in a manner that will allow you to repay with the income you have. Unfortunately, there are negative consequences to bankruptcy, as well, such as the fact that it will be recorded on your credit for 10 years. Of course, if you are showing a number of delinquent accounts the bankruptcy may actually improve your credit by eliminating the source of multiple negative items all at once.
Again, if you are considering taking the step of filing for bankruptcy, you may want to consult with an Arizona attorney who can best advise you of the benefits and consequences of this action. They may also be able to give you alternative suggestions for how to deal with this credit card debt that are unique to your particular situation.
Copyright HG.org - Google+
Disclaimer: While every effort has been made to ensure the accuracy of this publication, it is not intended to provide legal advice as individual situations will differ and should be discussed with an expert and/or lawyer. For specific technical or legal advice on the information provided and related topics, please contact the author.
Probably not your best choice. If the credit card company has sued you, doing nothing will always result in a default judgment against you under Arizona law. This judgment will remain on your credit report for 10 years. Once a judgment has been granted, except for a very few exceptions, there is nothing that you (or an attorney) can do to dispute owing the debt, the amount of the debt, or the validity of the judgment. Under Arizona law, the resulting judgment will be valid for 5 years, and can be renewed by the debt collector/debt buyer until the consumer dies, meaning if your fortunes improve in the future you could suddenly find your assets being seized by the credit card company!
Indeed, when collecting a judgment under Arizona law, a debt collector/debt buyer can attach assets (including your home), garnish your wages, garnish your bank account, and sieze physical assets like jewelry, furniture, computers, electronics, cars, etc. And, with the current status of computer tracking of all consumers, debt collectors/debt buyers will find you and any assets you have that can be used to satisfy the judgment.
2. Negotiate with the credit card company or debt collector.
You can always try to negotiate with creditors. However, be prepared to be treated rudely and rather unpleasantly during the attempt to settle. Keep in mind that the credit card lawsuit is not only demanding the "principal" due, but is also suing for several years of interest and attorney fees, so there may be a lot of money on the line at this point, and chances are the first person you speak to is not going to be authorized to accept anything less than every penny they believe they are owed. Even if you are able to speak to someone, negotiating is usually only successful if you can pay a lump sum rather than simply resuming payments. Also, remember that if the credit card company agrees to accept a reduced lump sum, that debt which is written off will usually be reported by the credit card company to the IRS through a form 1099C as income.
3. Fight in court.
In order to start taking your assets to satisfy a debt, under Arizona law the credit card company first has to obtain a judgment against you. To do that, they have to go to court. That means you have a chance to go to court and fight for your rights. There are a number of possible defenses depending on the unique circumstances of your case. For example, violations of the Fair Debt Collection Practices Act can invalidate an otherwise legitimate obligation or even create liability on the part of the debt collector to you. However, this will not apply to every case. Many of the available defenses or countersuit options are going to be very complicated and technical, so you should contact an attorney. You can represent yourself in these cases if you absolutely must, and this is definitely a better option than simply doing nothing, but you will likely be much better served by retaining an attorney to assist you than trying to handle things on your own.
4. Bankruptcy.
Finally, the ultimate solution to out-of-control debt situations is very effective with regard to Arizona credit card cases, as well: bankruptcy. Bankruptcy will usually either wipe out all unsecured debts, such as credit card debts, or will allow you to restructure those debts in a manner that will allow you to repay with the income you have. Unfortunately, there are negative consequences to bankruptcy, as well, such as the fact that it will be recorded on your credit for 10 years. Of course, if you are showing a number of delinquent accounts the bankruptcy may actually improve your credit by eliminating the source of multiple negative items all at once.
Again, if you are considering taking the step of filing for bankruptcy, you may want to consult with an Arizona attorney who can best advise you of the benefits and consequences of this action. They may also be able to give you alternative suggestions for how to deal with this credit card debt that are unique to your particular situation.
Copyright HG.org - Google+
Disclaimer: While every effort has been made to ensure the accuracy of this publication, it is not intended to provide legal advice as individual situations will differ and should be discussed with an expert and/or lawyer. For specific technical or legal advice on the information provided and related topics, please contact the author.
