U.S. & Arizona bankruptcy laws:
Debt Facts You Need to Know
U.S. and Arizona bankruptcy laws are quite complex and creditors love to take advantage of consumers who don’t know the laws. If you’re thinking about filing for bankruptcy, getting credit card debt relief or have a creditor threatening to get a credit card judgment against you, arm yourself with the facts in this article.
The most important fact is that filing bankruptcy will stop all collection activity, including phone calls, threatening letters, lawsuits, and wage garnishments. Some aggressive debt collectors for credit cards or other bank loans will claim that their debts can’t be discharged in Bankruptcy. That is false. Most unsecure and secured debts (if you return the property) are dischargeable. Only a few types of debts are not dischargeable - like taxes, student loans, and child support.
Collection agencies like to play tough and they like to keep you in the dark. If you’ve got collectors threatening you with legal actions or collection actions such as wage garnishments, seizing bank accounts, repossessing or foreclosing on property, you need to know your rights. Fortunately, U.S. and Arizona bankruptcy laws and debt collection laws are designed to protect you against deceptive practices.
Here is a short list of things it is illegal for debt collectors to do:
- State that you’ll be arrested if you don’t pay your debt
- Claim they will seize or garnish wages or income—unless they are actually permitted to do so by law and intend to do so
- Claim that they’ll repossess or foreclose on your property—unless they are actually permitted to do so by law and intend to do so
- Threaten to get a credit card judgment against you if they don’t actually intend to do so
- Claim that they’ll take legal action against you if such action is illegal or if they don’t actually intend to do so
- Falsely report your credit information to anyone—including a credit reporting agency
- Send you documents whose appearance falsely implies they are from a court or government agency
- Attempt to collect fees or interest not included in the contract for your debt
In general, debt collectors may not make any false statements to you or attempt to deceive you in any way. If you think a collector has been dealing deceptively with you in any way, contact an expert in Arizona bankruptcy law immediate. Jeffrey P. Judge will consult with you for free to help you determine whether a debt collector is being deceptive. Click here to schedule: Free Arizona bankruptcy law consultation.
More facts about debt and U.S. and Arizona bankruptcy laws
All the facts about debt and U.S. and Arizona bankruptcy laws cannot be covered in a single article. Please refer to these articles to get more details on these particular subjects:
Rules for Wage Garnishment
Wage Garnishment Rights
Car Repossession Laws
Government Credit Card Debt Counseling
Arizona Chapter 7 Bankruptcy Forum
Which is Worse, Bankruptcy or Foreclosure?
Credit card debt relief through bankruptcy
Arizona ranks No. 15 in the U.S. for the number of bankruptcies filed in 2009. Many of these bankruptcies involved some level of credit card debt, which is not surprising considering that Americans’ credit card debt totaled more than $900 billion in 2008. Sometimes the only way out, when you can’t pay all your debts, is to seek credit card debt relief through bankruptcy.
If you think you may need to file for bankruptcy, it costs you nothing to speak with bankruptcy attorney Jeffrey P. Judge. Just click the link below to tell us about your case and we’ll schedule your free consultation:
Free Arizona bankruptcy law consultation.
You may also call the Judge Law Firm at 1-520-745-1500 to schedule your consultation.